This past week, Chris Snider, author of Walking to Destiny, was our guest on Critical Mass Radio Show. Chris is changing outcomes for middle market business owners and helping them maximize and unlock trapped wealth, and touches on the importance of exit planning and value acceleration through his latest book. During his time on the show, Chris discussed the factors that can drive and kill your business values and what you can do about it. Here are three takeaways from our time with Chris Snider on Critical Mass Radio Show:
1. Change your paradigm. Traditionally, the concept of “exiting” has a negative connotation. However, this does not have to be the case. An exit strategy is not just about walking away; it is about driving value today. It isn’t something to hold off on and only think about down the road when you are ready to retire; it is a strategic business tool that you integrate into your current business operations and strategy. When business owners embrace this concept, they will not only be more successful in their exit, but increase value within their organization today. Change the way you think about an exit strategy; think about it in the present tense. As Chris said on the show, “your third act could actually be your best act.” In other words, if you prepare yourself and your business, an exit does not have to be the end; rather, it is just the beginning of a new, valuable chapter for your business.
2. Start now. Every day, businesses make decisions that affect both their current business value and their exit, whether they realize it or or not. Play close attention to your business decisions today; today’s decisions determine how much value you drive into your business now, and also position your business in the market for the future. Focus on what you can do now, in the next 90 days, to drive value. By focusing on where you are today as you work for continued growth, you will maximize long-term value, which will benefit you when it comes time to exit.
3. There is only one goal every business owner should have. This goal is to create value. Real value is created by focusing on the multiple, Chris said. While much of an organization’s market value is determined by the tangible, financial value of the organization, 80% of an organization’s value comes from intangibles, which Chris defined as “human, customer, structural and social capital.” In order to accelerate value through intangible assets, it is essential to have systems in place to identify and measure these assets, which are outlined in the “Four Cs” of Chris’s book, Walking to Destiny.
Listen to our full interview with Chris Snider below: