Often, when business owners come to us to sell their companies, we find that they are deeply immersed in the day-to-day activities of their companies. They tend to believe that — if they are actively involved in daily operations — they are providing leadership to their employees. That’s not the role of a true leader.

There are two major responsibilities in a company that a leader must provide:

• First, he/she is a visionary. The company’s leader must clearly define the purpose, goals, and future orientation for the company, and share that vision with the employees.

• Second, the company’s leader must provide foresight, energy, and skill to drive the company towards its purpose, goals, and future.

The owner does not manage the implementation of those processes. That’s the responsibilities of the company’s managers. Each manager must know what is expected in terms of implementing the Leader’s vision, purposes, goals, and outlook for the company.

If they are carefully trained and chosen, managers understand the operational processes associated with their responsibilities. Interestingly, as managers, they also have leadership responsibilities within their roles for implementing the company owner’s vision, as they “lead/manage” their employees and work flow.

Savvy buyers will want to know that a company can sustain itself without the owner’s being available on a daily basis. That’s the purpose of a Leadership Team that manages the daily operations of the company. When there is a Leader and a Management Team, a successful peak sale can occur.

So we ask our clients, Mr./Ms. Business Owner, “Are you a Leader or a Manager?”

For additional information about how to structure leadership and a management team, and be prepared for a peak business sale, please contact Wayne@richbizbrokers or RBennett@richbizbrokers.com.

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