retention

If you don’t have good people working for you who are qualified and highly motivated, then you lower the chances of having recurring customers. If you don’t have recurring customers, you may not a have a business that is attractive to potential buyers. The quality of the people working for you is an essential business driver which directly affects the salability of your business.

Determining if you have the best people sounds simple enough but most small businesses make the mistake of simply looking at resumes and holding interviews to find the most qualified people. Qualifications, however, are only one part of the selection process. You need to find people who are aligned with your particular business culture. For example, if you have a salesman who has been hugely successful in previous employment you might find that their selling style does not match the way you want to do business with your customers. In this case, your customers may not respond well to his style because they came into your business expecting something different. This type of employee could be a detriment to your business and not an asset necessary to drive value.

Identifying those in your organization who are the “best” and those who “aren’t” is both an art and a science. The science part involves using various methods to determine personality types. These employee evaluation assessments have been used for a long time and there are as many types as there are companies. These assessments not only determine the culture of your organization but also create a baseline for determining if potential employees fit that culture. The art of it, is not just identifying “less than perfect” employees but determining if they can function in your business through your training programs. It may seem simpler to get rid of a trouble employee but the cost in replacing them can be very high. How so? There is the search (your money), the interviews (your time), the training from scratch (your time and money) and the possibility you may have to do it again (and again).

You need a process in place to not only identify employees who may be dragging down your business but also one that includes determining if you are selecting the best candidates as employees from the beginning. Not only will this save you time, money and create loyal employees, it will increase the intangible value of your business. Anyone interested in buying your business will likely not have to re-invent the wheel on this issue. Selecting and developing the best people you have into viable assets is a strong positive and can only make your business better; for you, your customers and someday, for potential buyers.

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