Ep 143 Don't Be the Hub
- Danielle Mulvey
- October 17, 2023
How can you significantly increase your business’ value? In the latest Profit First Nation episode, Danielle shines a spotlight on the pivotal strategy of steering clear of the central hub role.
Exploring the adverse effects on business valuation when entrepreneurs find themselves at the epicenter for their employees, customers, and suppliers.
Danielle encourages entrepreneurs to proactively declare a future four-week vacation, setting the wheels in motion to diminish dependency on their presence.
It's a journey toward permanent profitability and max valuation by breaking free from the hub and spoke model.
IN THIS EPISODE:
[01:00] : Discussion on business valuation and the average multiples.
[02:48]: Exploring the concept of "hub and spoke" and the negative impact of being the central hub.
[10:00]: Strategies for removing oneself from being the hub, focusing on employees.
[13:16]: Tips on documenting standard operating procedures (SOPs) and delegation.
[14:09]: Impact of owner involvement in customer relationships on business valuation.
[15:30]: Valuation statistics based on knowing customers by their first name.
[17:57]: Prioritizing steps to disconnect from being the hub for employees, suppliers, and customers.
[22:01]: The importance of finding the right people and a Mike Michalowicz upcoming book "All In:How Great Leaders Build Unstoppable Teams"
KEY TAKEAWAYS:
Entrepreneurs are encouraged to declare a future four-week vacation and use it as a catalyst to make their businesses less dependent on them. This involves strategic planning to disconnect from being the central hub.
The importance of prioritizing disconnection from being the hub for employees. Delegating tasks and responsibilities while ensuring employees take ownership can contribute to business value.
Knowing customers by their first name may negatively impact business valuation. Encouraging strong employee-customer relationships and minimizing personal involvement can lead to a higher valuation.
