The Job of the Owner

As I explained in last week’s blog the roles of the CEO and the owner are different, even though the same person often occupies both positions.

So what is the job of the business owner?

I believe it is to drive  valuation.

Let’s think about that for a moment. Irrespective of the need or desire to sell the business the #1 job of the business owner is to drive valuation. Driving valuation is different to making profit and it is important to understand the differences and the implications of driving valuation.

I have no desire to sell my business, as a coaching business the business is me, after all, so you could argue that there is nothing to sell without me. However, as the owner if my focus is on driving valuation I might buy my office premises rather than rent them thereby building the asset base.

A little like a house owner, we all know that a house is only worth what someone will pay for it. I can live in my house and not maintain it and it will probably be worth less than I paid for it. I can maintain it and thereby maintain the value or I could maintain, improve and extend it well and enhance the value over time. It is a choice and needs to be a deliberate and conscious choice.

One of the major levers in driving valuation is the choice of the CEO. This falls to the owner.

So the questions for this week are;

• As an owner, how focussed are you on the valuation of the business?
• Does the business’s valuation feature in your annual / regular planning routines?
• How effective are you at growing the valuation of your business?
• How can you increase that effectiveness?

If you need any help, reach out

Many successful business owners eventually hit a wall on growth and struggle to climb it alone. When you work with me you get a fresh perspective, a solid plan, and customised coaching so you can grow and scale your business safely and at speed.

To check whether I can help you on that journey https://calendly.com/iankinnery/canweworktogether