If an interested party came knocking on your door today and wanted to purchase your business, would you know how much to quote them? More importantly, would the integrity of your business – its foundation, practices, and culture – accurately reflect your perceived value and encourage a buyer to pay your asking price?
The truth is, most business owners don’t know the precise value of their business nor do they have a comprehensive understanding of how to maximize this value.
Having a clear human resource strategy in place gives you the ability to provide documentation and therefore peace of mind to an incoming buyer. With employee policies, procedures and an evaluation process in place, documented job descriptions and employee and supplier contracts on file, you not only enhance the appeal of your business but provide the foundation for employee and leadership development, knowledge transfer and proper transition planning.
Here are some ways to start increasing the value of your business today with good human resource management strategies:
- Think about and document what the culture is inside your company today and where you want it to be.
- Develop an HR strategy to determine how to leverage talent, retain good employees and develop leaders.
- Develop an HR action plan and guideline to help determine who are the right recruits and how to attract top talent.
- Design and develop HR policies, guidelines and job descriptions to support your HR strategy.
- Think about which workforce segments in your business are the most critical to a high performing culture – the sales team, product development or maybe client services? Develop strategies to support and train in these areas.
- Analyze the tools and infrastructure you have in place to help your HR staff or managers succeed.
- Identify the right key performance indicators and create a scorecard to track the investment in your HR strategies.
- Identify key areas and positions where there may be a gap in capabilities of knowledge and skills of the incoming successor or leaders for future transitions.
- Develop a succession and knowledge transfer plans with key measurables and timelines.
If you do not have an HR specialist, you may want to consider hiring or delegating the responsibilities and management to a specialist in this area. There are business advisors who can help you implement an HR plan, as well as technology and tools to support and track your HR initiatives.
Building good HR strategies that are successfully applied and executed will have a significant impact on the long-term well-being of a business as they inspire and motivate people to efficiently execute the company’s vision, build culture and add value.
Whether you want to lead this initiative yourself or would prefer the expertise of a business advisor who can help build an action plan or access to the tools to support your initiatives, connect with an Intent Planning advisor to explore your HR needs.