Replacing Yourself is Easier Than You Think with Christine Nicholson
Jul 31, 2024Running a business is challenging, yet many entrepreneurs aim to create a valuable, sellable asset. Recently, Shannon sat down with multi-award-winning expert Christine Nicholson on the "Keep What You Earn" podcast to discuss this very topic.
Shannon focused on exit and succession planning, emphasizing the importance of preparing for a future where business owners can choose to either scale or sell their businesses. Christine pointed out that up to 90% of owner-managed businesses are unsellable due to their reliance on the owner and lack of preparation. By starting today, businesses can alleviate future stress and ensure a smoother transition. Surprisingly, it takes only 15 to 30 minutes daily to begin this preparation.
One major takeaway was the significance of developing Standard Operating Procedures (SOPs). Shannon shared how creating SOPs allowed her to remove herself from daily operations. She finds time, like when traveling, to document business processes, creating a business environment where operations run smoothly, even in her absence. Christine highlighted that SOPs provide consistency, clarity, and certainty within the team, freeing up mental space for creativity and higher-value tasks.
A common concern is that rigid procedures might stifle creativity. Christine countered this by highlighting industries like healthcare, where procedures vastly improve outcomes. Shannon suggests starting with fundamental processes like onboarding or sales calls, creating guidelines while allowing team members to add their unique flair.
Another key concept was "guiding principles." Shannon finds that empowering employees with high-level rules or guiding principles is often more beneficial than micromanaging instructions. These principles help team members make decisions aligned with the company's values and goals, fostering autonomy and ownership.
Christine emphasized the importance of training and developing your team. Quoting Richard Branson, she advocates for training employees so they can leave, but treating them well so they choose to stay. This strengthens loyalty and ensures a reliable team, reducing recruitment costs.
Both hosts agreed that giving employees autonomy within defined boundaries leads to a more engaged and motivated workforce. This approach allows employees to exercise their judgment while aligning their efforts with the company’s vision and standards.
In closing, Shannon and Christine underscored that preparing your business for a potential sale doesn’t mean you have to sell it. It simply means creating a robust, efficient, and valuable enterprise that can thrive with or without your direct involvement. Shannon wrapped up with an essential reminder: building a sellable business and loving it like you're keeping it aren’t mutually exclusive. In fact, they complement each other perfectly.
By taking small, consistent steps toward systematic planning and empowering your team, you can build a business that thrives today and is positioned for sustainable success in the future. Whether you decide to scale or sell, having the choice is the ultimate freedom for any entrepreneur.
Christine Nicholson is multi-award winning and seasoned expert on exit and succession planning in owner managed businesses including employee ownership, exit options and getting out of your own way. She’s the author of 4 books that give practical advice on running better businesses. she’s lived and worked in 10 countries and exited dozens of businesses generating hundreds of millions of value
Get your copy of “Sell it!” here: https://christinenicholson.co.uk/books/
Website: www.christinenicholson.co.uk
LinkedIn: https://www.linkedin.com/in/christine-nicholson/
Facebook: https://www.facebook.com/christine.nicholson.146/
What you'll hear in this episode:
05:31 Documenting processes on a plane without internet.
08:24 Following process enhances rather than restricts creativity.
10:18 Create recipes, leave room for customization.
13:26 Checklist system improves medical procedures and collaboration.
17:24 Invest in training to retain talent effectively.
If you like this episode, check out:
Strategies for Managing Remote Teams
Mastering Recruitment: Marketing Strategies with Shannon
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The information contained in this podcast is intended for educational purposes only and is not individual tax advice. Please consult a qualified professional before implementing anything you learn.
