When’s the last time you took a real vacation?
The type of vacation where you break away for more than a week and completely unplug.
Entrepreneurs are notorious for becoming so absorbed in their company that they neglect downtime.
But taking an extended vacation of two weeks or more on a regular basis can actually improve the value of your business.
Here’s how.
THE SUSTAINABILITY TEST
How sustainable is your business in your absence? Is there any one key member of your team, yourself included, that is so important that your business literally can’t function without them?
If so, that’s a problem. It’s not only a threat to your current sustainability but poses the risk that it reduces the value or transferability of your business if you’re looking to sell.
Taking an extended vacation is one of the best ways to put your operation through the test. If your leadership team and processes are rock solid, your organization won’t miss a beat in your absence and customers and employees will hardly notice that you were gone.
Does that mean you’re no longer important? Of course not!
After all, you’re largely responsible for building such a well-run organization. As a business owner your job should be that of visionary and setting strategic direction, not running every day to day operation inside of your business.
And if you find that your company can’t function at the same level without you, at least It allows you an opportunity to proactively identify areas that need attention and take steps to improve your company. Whatever gaps you find can be identified and resolved (improved documentation of your process, ensuring you have the right team in place, the appropriate training and education for your team, etc.) well before anyone from the outside is evaluating your organization.
INSTILL TRUST AND ELEVATE PERFORMANCE
Nobody enjoys working for a micro manager. At least no one I’ve ever met.
When you take a vacation and hand the keys of one of your most prized possessions to your leadership team, it’s a genuine gesture of trust.
More than anything you can speak, the simple act of putting your precious business in the hands of your team tells them that you trust them completely and without reservation.
That simple gesture of trust can reflect with a sense of importance and accomplishment from your team. Given the chance, they may just shine and improve their performance.
OWNER INDEPENDENCE
Owner-dependent businesses aren’t worth much. Nobody wants to buy a 60 or 70-hour per week job. Investors or strategic partners are looking to make an investment in a business they can continue to grow through strategic effort, not a daily grind.
If your company and its leadership team can maintain performance in your extended absence, you now have evidence that your business is transferable. Its people, processes and infrastructure are positioned for efficiency and growth. The value this brings will make your business more attractive and likely move you higher in the range of value when the time comes to exit.