How Strong is Your Bench?

If you’re like most people when you first hear the question, “How strong is your bench?”, we often think about the bench full of second-string athletes at a football, baseball, or basketball game. These strong and talented athletes are just waiting for their chance to jump into position at a moment’s notice. Coaches constantly rotate players on and off the field, or on and off the bench, to showcase and preserve the strength of their overall team.

Essentially, we're talking about that kind of bench, but this article is about small business owners, not football coaches. There aren’t any second-string team members in business. Every player in our business has to be an all-star.?

The right executives, the right division heads, and the right managers are vital to the growth of your business. These players, or these team members, can make or break your business. So if you can build the all-star team in your business, you’ll win the proverbial business championship.

Why Should Business Owners Hire an Executive Team?

Well, businesses that can operate without the owner present tend to bring the highest market value at the time of sale. Buyers don’t want a business’s success to depend on one person. Your executive team, or the group of people who run the company when you’re not there, is what makes your company more attractive to investors. The deeper your bench goes, the higher your sale’s price goes.

Think about this. If you go to sell your business, and every business decision and process depends upon you, the owner-entrepreneur, what will the buyer do when you’re gone? Who will know how to operate the company, implement the business plans, and ensure that the management systems run seamlessly? No one. No one will know what to do, and the investor won’t necessarily want to get into the thick of business operations as you do.

With an executive team in place who can operate the business with or without you, your business is going to be much more attractive to a buyer who’s looking to make an investment in a company that can double or triple its value without their involvement.

Without talent around us, we business owners can only drive our businesses so far.

Additionally, you’re not going to grow to reach your company’s full potential unless you relinquish control of your business. You have to let go of the reins. Without an executive team present, your business is going to plateau. It’s going to become stagnant because everything depends on one person’s physical and emotional capabilities. Without talent around us, we business owners can only drive our businesses so far.

If you’re an owner I want you to ask yourself:

1. Who are the key players driving your business's success?
2. Have you considered the implications of your business's dependence on you as the owner?
3. What steps can you take to cultivate an executive team capable of operating independently?
4. How do you envision the growth trajectory of your business with a strong executive team in place?
5. Are you prepared to invest in recruiting and developing talent to unlock your company's full potential?

Looking Ahead:

In our follow-up article, we'll explore into the practical aspects of building an executive team. Stay tuned as we explore strategies to strengthen your bench and propel your business towards sustained success.

Simon Fallows CEPA?, owner of Freedom for Founders, a Canadian exit strategist, entrepreneur, and investor who has experience starting, selling, and buying businesses. A thought leader working with a broad range of product, service, and retail business owners helping them maximize their company's value, personal wealth, and wellbeing

References: Justin A. Goodbread, CFP?, CEPA?, CVGA?, owner of US-based Heritage Investors, LLC and FinanciallySimple.com , is a nationally recognized financial planner, wealth manager, financial educator, author, speaker, and entrepreneur.?