The value of your business may slip - if you don't watch out!

CONTENTS:

1. Put your business up for sale - although you don't intend to sell it!

2. Pays for itself!

3. We can help you develop your Operations Manuals.

1. Put your business up for sale - although you don't intend to sell it!

Do you think that sounds foolish?

You might learn, at little cost, a lesson many business owners learn painfully: that the "value" of your business (or department) is a living thing, likely to shrivel without the care and sustenance it needs.

Nothing makes the hard facts about the value of your business clearer than putting it up for sale.

That's when your doubt or inadequacy in answering buyer's questions suddenly tells a tale about needed documentation. Or, the documentation you never wrote makes your business "too risky" for your prospective buyers.

Does documentation really add value to your business?

Here are some ideas to think about.

Probably, nine out of ten businesses need documentation updates right now just to maintain their present value.

Probably one out of ten is beyond maintenance. (Please write me if your company couldn't use new or improved documentation.)

Why haven't these business owners done something? Is maintaining the value of their businesses too difficult, too expensive? I guess many of them must think so because the most popular excuse for not developing documentation is "not in the budget."

What if Ray Krok "couldn't afford" to write an operations manual?

Well for one thing, non-experienced restaurateurs couldn't buy a McDonalds cash cow - a money-makin' machine. McDonald's detailed operations manual is a key part of that machine.

Your McDonald's franchise (the right to do business as a McDonald's) costs only $175,000. McDonalds provides the land, building, and documentation to run your franchise. You pay rent to McDonald's for using their land and building. (Typically, other fast food chains do not own the land where their restaurants operate.)

Plus, you must equip the building, purchase your inventory, advertise, decorate, etc. McDonald's Corporation does not provide any of these, but has a list of approved suppliers with whom you may do business.

Thus, a new McDonald's restaurant will cost you about a million bucks resulting from many expenses that far exceed the $175,000 franchise fee. Plus, you must be financially able to operate about 6 months before turning a profit.

However, the operations manual makes your McDonald's franchise a simple turnkey business.

The McDonald's operations manual dictates every move made inside its restaurants. For example, rules govern how many hamburger patties to a pound of beef (10), how long to toast a bun (17 seconds) and how much sanitizer to use when cleaning the shake machine (1 packet for 2.5 gallons of water).

Still, an operations manual doesn't guarantee a perfect operation. For example, McDonald's has always checked in with customers. Until recently, customer data were mostly anecdotal (unconfirmed rumors).

This meant there was no way to tell whether the same passing grade from two different reviewers meant they each received the same quality of service. Jim Cantalupo, McDonald's Chairman and CEO, decided it was time to start grading restaurants on a standard scale everyone could understand.

Can you say, "update the manual!"

2. Pays for itself

Your operations manual will pay for itself repeatedly in sales, lowered costs, better service, and hassle-free business control. By giving your employees faultless direction in your business or department, you will reduce the time and cost of supervision.

Your operations manual should contain detailed, written explanations of your business systems and the way your company or department must be operated. Your operations manual must be comprehensive -- it is your blueprint for success.

This is what your buyer pays for, more than any other item in your business system.

By showing your prospective buyer your operations manual, you will gain their respect and achieve a sale because your proven expertise is outlined in your manual. Your manual proves your business format is comprehensive and complete. The SYSTEMS and business methods you have instituted can be passed on, so your buyer can instruct their people how to use them.

When presenting the facts about your company to prospective buyers, there is nothing as impressive as a detailed operations manual. Here are a few of the areas you should cover in your operations manual:

• Your Company Philosophy, who you are and what you stand for
• Requirements of administering the business
• Legal requirements in day to day operation
• Accounting procedures to your standards
• Methods of Marketing and business promotion
• Personnel hiring and complete Human Resources legal requirements
• Maintaining standards, proficiency and quality
• Pricing policy and suggestions
• Product Sales Procedures

3. We can help you develop your Operations Manuals.

Most managers these days suffer increasing pressure to slash costs and get more done with fewer people.

I work with managers like you to relieve this pressure of having to boost production and profits with fewer people. I like to say, "We take the pressure off!"

But, I don't know whether we can do the same for you because I don't know you. But, what if we COULD relieve your worries, would you like to learn more? If we can't increase your profits and save you time, money and trouble - you pay nothing!

I fully expect your costs to be a small part of your increased profits and savings (making our service essentially FREE!) You have nothing to lose.

Over two decades, SMS has saved time, money, and effort for scores of companies in Silicon Valley (and from Toronto to Hong Kong)! This means you benefit from techniques proven successful on over 300 projects.

You decide. Don't let the lack of Operations Manuals stunt the growth of your business!

First, (if you haven't already) sign up for Profitable Venture Tactics eZine so we can become better acquainted.

When you're ready to get started, just call (408) 817-5684 for a Free Needs Analysis.

To Your Business Success,

Mike Hayden, Principal/Consultant: Your partner in streamlining business.

PS. To receive the latest Profitable Venture Tactics eZine (free) click the button now.

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We take the pressure off.

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