When selling your business, it is essential to get the right mix of people to complement and reinforce your business. Having an effective management team helps you to create a more efficient and capable business without the dependency on the owner.
When a business can operate without the owner it tends to be worth more to a potential buyer than a business which requires the owner’s day-to-day involvement to run properly. A business which does not depend on the owner(s) for operations or revenue is a great sign that a good management team exists and systems are in place to run the business. Strategic buyers, those who are looking to buy a business to grow their own, tend to value management team capability very high and will pay a premium for a business that can run effectively without an owner.
It can be tough for other people to run your business without clear direction and a plan, ensure your management understand exactly what their responsibilities are and how to do them. However, it is also key to give them the freedom to make decisions.
Here are a few management responsibilities that can help a business survive long past the current owner’s involvement:
- Qualified in all services provided by the salon, to ensure all staff are kept up to standards and to be able to provide training when necessary.
- Recruitment involvement, it is important that the manager understands what is needed of a person to fit the needs of the business and the salon environment.
- Preparing work schedules for the staff, and knowledge of what to do in a situation of staff sickness etc.
- Setting goals and evaluating staff performance.
- Addressing and resolving customer complaints.
- Dealing with stock counts and orders.
- Processing payments and ensuring accurate financial records.
- Maintaining client and staff relationships.
A strong management team and a high-quality work force are worth their weight in gold for any business owner. In-addition, by giving prospective buyers a well-trained and highly skilled team to work with once they take over provides a great deal of stability and assurance for a buyer when selling your business.