Competence Versus Qualification - Creating Salability in Your Business
Welcome back from the Victoria Day Long Weekend here in Canada and to my weekly articles on business building. In order to extract value from a business it needs to be sellable. There are several facets to creating salability, one of which involves Human Capital - your team. Growing a successful, sellable company requires competent team members, however, being competent is far different than being qualified. Competence is developed and nurtured as described in my essay by building on qualification. If you want to ensure that you have a salable business – build competent teams – they are the business.
Most owners get one chance to get it right when they decide to sell, yet most owners cannot sell the business they built (only 1 in 10 are successful) because they did not build a salable asset. If selling your business to fund your future lifestyle is a must, ask yourself whether you are prepared or not, and then identify what you need to do to get to where you need to be.
With up to 76% of Canadian businesses reporting that they hope to exit in the next 10 years, being unprepared might cost you both your legacy and your retirement.