To Building aHigh-Value Company 

TEN STEPS  

 Two entrepreneurs started businesses ten years ago.

• same industry• same market• same bootstrap financing• same economy• same opportunities• same luck – both good and bad

WHAT HAPPENED?

 Company A is now poised for multi-million dollar sale.

Company B is worth next to nothing.

 Company A was led by an entrepreneur who:

• learned what strategies would build his company’s value

• surrounded himself with a leadership team that could help him execute his plan

•Went beyond the “Six Key Components™” to be ready when opportunity arose

Company B’s leader was too busy with the day-to-day to get around to building a complete team that could do more than he could do alone.

STEP 1:Decide NOW to be an equity-growth company, not a “lifestyle” business. You can’t use your business as a personal piggy bank and build

value at the same time.• No hiding personal expenses in your P&L• Consider yourself a steward of other people’s money• Keep money in the business to boost its value• Think MULTIPLIER in the long run of deferred gratification

VALUE IS EASY TO PROVE WITH HIGH PROFITS

STEP 2:Get serious about taking the time to become a great hiring company.

Strengthen your people component. You can’t reach greatness without the right people in the right seats.

• Hire based on core values and not on qualifications alone

• Read Good to Great by Jim Collins• Use screening tools like Strengths Finder, Kolbe, DISC

INVEST IN PEOPLE AS CAREFULLY AS EQUIPMENT

STEP 3:Read, believe, and practice the disciplines in The Four Obsessions of an Extraordinary Executive. Strengthen your vision component. • Obsession 1 Maintaining a cohesive leadership team • Obsession 2 Creating organizational clarity• Obsession 3 Over-communicating the vision• Obsession 4 Reinforcing organizational clarity through

human systems

ANSWER THE V/TO’s “EIGHT QUESTIONS”, SBA

STEP 4:Use metrics to drive EBITDA.

Strengthen your data component. • Annually plan for EBITDA driving programs, strategies.• Every department has a scorecard, executive team, too.• Every employee is responsible for a measurable• Scorecards are reviewed every week

ANNUALLY MEASURE “NORMALIZED EBITDA”

STEP 5:Address your problems head-on.

Strengthen your issues component. • Stop turning left at Fear Junction – ignored problems

WON’T go away• Treat the root cause and not just the symptoms• Make it SAFE to call out the issues & hold one another

accountable

IGNORED PROBLEMS ARE A TRACTION KILLER

STEP 6:Document your core processes.

Strengthen your process component. • Write them down so everyone sticks to the same method • Be detailed with your explanations, but distill them into

simple checklists and charts• Repeatable processes simple to understand, boost

company value immensely

THIS IS HOW WE DO THINGS HERE

STEP 7:Build value-driving principles into your leadership team’s planning cycle and accountability system. Strengthen your traction component. • Your team must know what drives value and be

held accountable for the part they play in it.• EOS provides a corporate-style planning cycle

so make sure it is so ingrained into the culture people are mad if they don’t get quarterly and annual planning retreats.

“YOU CANNOT OVERCOMMUNICATE CLARITY”

STEP 8:Get your work/life balance in order.

Take regular clarity breaks. • Leave the trees so you can see the forest.• Personal free time away from work is a requirement, not

a reward.• Dan Sullivan of Strategic Coach discusses “Focus

Days, Buffer Days, Free Days”.

GET OUT OF THE BUSINESS TO WORK ON THE BUSINESS

STEP 9:Build a case for value and be ready to share it an any time. Document your key metrics – revenue growth, earnings trends,

churn rate, list of top customers, percentage of market share, etc.

• You can miss a golden opportunity if your case isn’t ready when it comes along.

• Hire a CFO to build your case for value. Even small companies can afford the services of a fractional CFO.

• Consider Investment Banker / Business Brokers relationships a year or more before you need them

BE READY WHEN THE RIGHT OPPORTUNITY ARRIVES

STEP 10:Align yourself with advisors that know how this works and will hold you accountable.

YOU CAN’T DO THIS ALONE

You will need:• Strategic execution coach = Your EOS

Implementer• Staffing Firm for key hires• CPA • Fractional CFO• Attorney• Investment banker

THE END RESULTEven if you choose not to sell your business, you’ll be living The EOS Life:

YOU MIGHT NOT WANT TO SELL A BUSINESS LIKE THAT!

• Doing only the work you love• Working only with people you love to be with• Making a significant difference in the lives of others• Being well paid for your efforts• Having time to do other things you’re passionate about

QUESTIONS?

Case Studies / Q & A