by Greg Caruso | Nov 17, 2023 | ESOP Business Valuation
Humans have a natural desire for autonomy and independence. When management’s style consists of only telling employees what to do, this can lead to lower self-esteem, resentment, and anxiety in employees.
ESOPs (Employee Stock Ownership Plans) can lead to a better management style that can positively impact both employees and profit. ESOP managers often use a more employee-centric style.
With an ESOP in place, employees become co-owners of the company, and their success is tied to the company’s performance. This shared ownership instills a sense of purpose and commitment among employees, as their efforts directly contribute to their financial well-being.
Management in an ESOP company often seeks input and feedback from employee-owners before making significant decisions. There is a greater emphasis on empowering employees to take ownership of their work and make decisions that impact their departments or roles. This empowerment enhances job satisfaction and company loyalty.
ESOP managers often share financial and operational information with employees to keep them informed about the company’s performance. This transparency builds trust and encourages open dialogue between management and the workforce.
ESOP companies often invest in employee development and training. By empowering employees with the knowledge and skills they need to excel in their roles, management fosters a culture of continuous learning and improvement.
By aligning employees’ interests with those of the company and promoting shared ownership and decision-making, an ESOP can create a positive work environment where employees feel valued, empowered, and motivated to contribute to the company’s success. This results in higher productivity and more profit for both the company and the employees.
by Greg Caruso | Oct 24, 2023 | Exit Planning Business Valuation & Growing Business Value
In the ever-evolving landscape of business management, leaders are often faced with the challenge of balancing multiple responsibilities, driving growth, and ensuring the success of their organizations. In this pursuit, one key factor stands out as a game-changer: focusing on your strengths and knowing what you are good at. Embracing this philosophy can not only lead to personal growth but can also significantly impact the overall success of your company. In this article, we delve into the importance of honing your strengths and leveraging them in the realm of company management.
Identifying Your Core Strengths
To truly excel in any role, it is imperative to first identify your core strengths. While it may seem enticing to try to be good at everything, focusing on your strengths allow you to channel your time and energy into areas where you can make the most significant impact. As a company manager, when you lead with your strengths, your passion for the work becomes evident, inspiring those around you. Your team members are more likely to follow suit, embracing their own strengths, and collectively, you build a workforce that is motivated, engaged and committed to excellence.
Recognize Your Limitations
Company management is not a one-person show. Acknowledging your strengths also means understanding your limitations. By recognizing areas where you may not excel, you can strategically delegate responsibilities to team members who possess complementary skills. Trying to excel in areas where you lack natural talent can be draining and lead to burnout. Delegating tasks to individuals who thrive in those areas fosters a sense of ownership and empowerment within your team. This approach not only improves overall productivity but also cultivates an environment of trust and collaboration, where team members feel valued for their contributions.
Competitive Advantage
In the highly competitive business landscape, organizations must capitalize on their competitive advantage to stand out. By positioning yourself in areas that align with your strengths, you become a driving force in your company’s success. Your unique perspective and capabilities can help your organization carve a niche and differentiate itself from competitors.
Approach Challenges With Confidence
Every company faces challenges, be it market fluctuations, disruptive technologies, or unforeseen crises. When you focus on your strengths, you develop a sense of self-assurance and resilience that helps you navigate through these obstacles. Knowing what you are good at allows you to approach challenges with confidence. You can leverage your strengths to devise creative solutions, adapt to changing circumstances, and inspire your team to overcome adversity.
by Greg Caruso | Sep 17, 2023 | Technical Business Valuation Topics
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The Art of Business Valuation’s, Managing Member, Gregory Caruso, was recently published in the May/June 2023 issue of The Value Examiner. Greg’s article, “Market Method for Valuing Small Businesses – Selecting the Multiplier,” focuses on how to select the multiplier when valuing a small business using the transactions market method in business valuation.
The market method works by comparing actual sales transaction data for companies that are comparable to the subject company. This method is not perfect, but for many small and micro businesses (typically less than $10 million in revenue) it is one of the best methods because, for most industries and SIC or NAICS codes, there is sufficient relevant data.
This and much more information on business valuation of small businesses with revenues under $10 million is available in his book, “The Art of Business Valuation6”, published by Wiley and available online including Amazon. https://amzn.to/3YmTC8T
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by Greg Caruso | Aug 11, 2023 | Exit Planning Business Valuation & Growing Business Value
What stories are you telling about your business?
Storytelling is a core part of business success. Beginning with the new employee onboarding process, new hires are welcomed with captivating narratives about the company’s journey, its values, and the achievements of prior employees. These stories educate the current employees about the company’s history and instill a sense of pride and belonging within the organization. The narratives of innovation and perseverance inspire everyone to strive for greatness and remind them that they are part of something bigger than themselves.
Progress and other meetings include regular storytelling sessions. At these sessions, leaders reinforce the company’s values and encourage open communication among the team. Stories of collaboration, problem-solving, and overcoming challenges serve as valuable lessons and strengthen the bond between employees. As the Company grows, so does the collection of stories, becoming a living tapestry of shared experiences and aspirations. This unique business culture, woven with the threads of storytelling, not only attracts top talent but also lays the foundation for a thriving, motivated, and united team that is ready to take on any challenge that comes their way.
What stories are you telling?
Hint – When your employees start repeating these stories, amazing things happen.
by Greg Caruso | Aug 4, 2023 | ESOP Business Valuation
Join Gregory Caruso at The ESOP Association Multistate Regional Conference 2023 in September as he presents “Your ESOP Valuation: More Than Just a Number” with co-presenter Sarah von Helfenstein. Certainly, the value found is the key of any business valuation, but valuations also contain so much other information that is useful to management and trustees. Learn from an experienced former small business owner and ESOP valuator what attributes should be compared and analyzed to use your business valuation not just for the number, but as a management tool. In this session, we will dive deep into the intricacies of ESOP valuation, moving beyond the surface-level numbers to uncover the key elements that provide a valuation appraiser and more importantly, management and trustees insight into a company’s value. This is an important topic for all ESOP trustees, plan administrators and employee-owners. It can become a management tool for trustees and management and allow employee stock owners to participate more fully in the success of their company. Internal and third-party Trustees will learn what to look for and how to better assess a value conclusion provided by a valuation appraiser.
Register for the Conference here.
