Buy And Sell A Business

Leadership Style Can Increase the Value of Your Business

Whether you’re leading a small, medium or large business, if you are not replaceable as the leader, you are a liability to the organization. Why? It’s simple. Great leaders develop operating principles, processes and company values so the company can operate without them. This allows leaders to focus on the future and depend on their team to play in the ‘today’ game of the business, which is extremely important for its growth. Moreover, as a leader you don’t want to create a company that can be vulnerable if you’re not around, whether it be voluntarily or involuntarily.

Your leadership style has a direct impact to the value of the business, by ensuring you have the right people, on the right bus going in the right direction at the right time. It’s key to scaling and creating a sustainable system that can explode with meaningful and responsible growth.

I recently chatted on Instagram Live with Netflix co-founder and former CEO, Marc Randolph. During our conversation, he mentioned something his partner and current Netflix CEO, Reed Hastings said to him a while back. Reed explained that his metric for exceptional management is how long he can go without making a decision – which blows my mind, but at the same time makes total sense. He’s confirming his strength as a leader and his faith in his people. He truly has created a self-sufficient business where his people can make decisions and operate without him. Yes, of course, he may be brought in time to time to make critical decisions to set the tone, but the majority of his focus is on the future.

On a micro level, you hear me talk a lot about the 3 pillars to creating a valuable and sellable business and the above is the granular view on why creating a self-sufficient business (which is 1 of the 3 pillars) is super important. See, your predecessor, whether it be a new leader or new owner does not want to enter a business that will fall apart if you were no longer guiding the ship.

As I’m writing this, I’m starting to see how the best leaders are like the best athletes; they know how to create space and time to think, and they know how to guard their position and prioritize things by having the right people around them.

Essentially, great leaders are creating an environment that depends on them less. Don’t get me wrong, creating an environment as a leader where you are depended on less doesn’t mean you are not valuable, it’s actually the opposite. It means that you are doing your job and setting the tone in order to step away so that your amazing team can do what they do – create, invent, innovate, build, operate, manage, analyze, report and WOW your customers!

Nunzio Presta is the Founder & CEO of BizON.

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Opinions expressed here by Contributors are their own.

Leadership Style Can Increase the Value of Your Business
3 mins (699 words)