What's Your ValuePoint?

See those gaps in the circles of Business, Ownership & Family?

Have you had THAT moment in your business when one of those gaps stalled the business? 

THAT trigger point of asking yourself, “What do I do now?”

 

You worked hard and built a $1 million business. On the way you hit a few plateaus and the iconic “one step forward, two steps back” slides. You push through it and build it back up, then do it again, this time to $5 million in revenue. The plateaus and slides are relentless. This ebb and flow is known as the Valley of Death. These are the operational chasms between financial peaks in any business’ growth. It’s why only 4% of family businesses ever make it past the $1 million mark. 

 

Have you hit THAT challenge – that gap – which feels insurmountable? Or that feeling that you are on a hamster wheel? Growth is flat. The team is stuck. You feel stuck. Is building a business supposed to be this hard?

 

Take a moment to realize…you found your ValuePoint.

 

What is a ValuePoint? After working with family business owners and their teams for nearly 20 years, we found 6 recurring themes. Critical points in a business’ growth cycle that determine their level of success or decline. Family business owners are uniquely challenged in these valleys of death on their growth journey. It’s not just a business. It’s family + business = it can get complicated.

 

We’ve come to understand that it's in these key areas where value is created or lost. Six key areas that must be aligned in order for the company to scale. They are the foundational pillars of a strong family business, and when they operate in unison, it creates a flywheel of growth that is hard to stop – even in a year such as 2020. 

 

But when one or more of these pillars are deficient, or absent altogether, the owner, the business and its people flounder and stagnate. Think of it like a wheel with divots in the outer rim. As the wheel turns and makes contact on the company’s growth path, the gap causes a glitch in the momentum. The larger the gap, the greater the impact of that glitch until it disrupts the momentum and brings progress to a stand still.

 

This discovery is the origin of our ValuePoints™ Family Business Operating System. It’s a proven process of working through these 6 pillars to ignite, build and maintain sustainable business growth and leadership development.

 

Think about these questions…

  • Are you working to continually create more value in the business every day?

  • Do you have the right people? And better question: would you REHIRE everyone today?

  • Has the whole family sat down and discussed their desire to have a role in the business?

  • Life happens. Have you thought about what life looks like if you don’t come to work?

  • What is your financial picture if the business no longer issues a paycheck or writes off certain expenses?

  • For decades, the business has been your life, so what will life look like without the business? 

 

So I go back to the beginning of this blog. That trigger point where you find yourself asking, “What do I do now?”...
 

  • Which one of these questions above hit a nerve? 

  • Was there more than one? 

  • Are these pain points causing family tension, stalled growth, turnover, sleepless nights or all of the above?

 

These are your ValuePoints. Areas that NEED to be – and CAN be – addressed in order to scale successfully, create harmony in the family and create a legacy for the generations not yet in the business.

 

I’ll dive deeper into each one of the six pillars over the next few months and share tools that can help smooth out the ride on your family business journey. Stay tuned...

 

 

*Deloitte: Perspectives on family-owned businesses. Governance and succession planning. 2013 

 

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Cheryl Doll is a Senior Business Advisor / Gravitas Coach at Compass Point Consulting and provides hands-on consulting & coaching to help family businesses close performance gaps; give owners practical, actionable tools that drive growth; deliver training to develop leaders and position the business for successful ownership transition - all on their terms.

Learn more at: http://www.compasspt.com

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