15: Risk Management Strategies with Brian Trczynski
Following on from the last episode, Brian Trczynski returns to join host Nana Bonsu this week on Build Value by Choice. He’s back to discuss various risk management strategies for events such as owner’s death, disability or business transfer/transition. In this podcast, you’ll learn how to protect your business, avoid silent killers of your business value, and set your business up to generate higher value and exit without regrets.
KEY TAKEAWAYS
Once you’ve obtained your business valuation (linked below) and an income replacement value from your wealth management advisor, a business owner’s next priority is to protect the value they already have by mitigating their personal/financial/business risks.
Most businesses have a value gap, in other words they’re not operating best in class relative to their industry peers. There is value they’re leaving on the table because there are operational gaps in their business they can improve.
The challenge to business owners addressing risk, is that if the task seems too big then they often just do nothing. Addressing risk should be done at a manageable pace with achievable tasks.
The thing that makes your business attractive to prospective buyers and sellable is the fact that it will be able to be profitable for someone else. If a buyer comes in and sees a lot of risks like an owner dependent business, not having customers who stick with you, and a lack of diversity in clients, then the number they value your business at gets lower and lower.
You have to have a dominant market share, you have to have a recurring revenue model, there has to be a barrier for entry to competitors, you have to have product differentiation, and you have to have a strong brand. If you have these things in place, regardless of your size, then you will be very appealing to a potential buyer.
BEST MOMENTS
‘Before you can grow you’ve got to protect’
‘A business is not a liquid asset’
‘Diversification is one of the most important things a business owner has to understand’
EPISODE RESOURCES
Leave a comment or question on the Build Value By Choice Facebook community page
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Get more resources on https://https://infhorizons.com/podcast
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PODCAST DESCRIPTION
Hosted by Nana Bonsu of Infinite Horizons, this show aims to serve small business owners who want to grow their businesses while reducing their own personal involvement. We do this through a combination of interviews with industry leaders, and host presentations. We are certified value builder advisors and leverage a statistically proven methodology to help clients such as you scale or transition their business to the next chapter.
We care for our listeners and see their dreams as our own. We aim to foster a community that embraces freedom, generosity, and integrity. This is a show by entrepreneurs and business owners for entrepreneurs and business owners.
ABOUT THE HOST
Nana Bonsu:
“I am an entrepreneur and ex-Corporate Executive who’s applying his experience and knowledge from working in various to pursue my passion of helping small business owners increase their choices in life by leveraging my knowledge and experience, their employees, systems and money. I help small business owners transform their business and increase value through action-oriented education and implementation of strategies and tactics to make their business sellable even if they are not planning on selling. Known for establishing an environment for personal growth and development. My multicultural background equips me with the intuitive understanding of different cultures and how they impact business owners.”
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