Vacations and Valuation: Why Taking a Vacation is Good for your Business
In Minnesota, summer is short. And boy do we know how to take full advantage of it. We schedule busy evenings and packed weekends, all to enjoy a small season of great weather in a beautiful state. But what if you own a business? Should you take a week (or two) off this summer to spend at a lake? Can you take a road trip with your family without feeling guilty about leaving your company behind? Believe it or not, as a business owner, taking a vacation can benefit both you and the health (and value) of your business. Here’s how:
- Health Benefits: Obviously taking a break is good for your health. Slow down, breathe, and have fun. You will lower your stress and improve your physical health, all while creating memories and enjoying precious time with friends and family. When the vacation is over, these positive benefits will carry over to your business as you reengage healthy and refreshed. And, being a healthy owner improves financial performance as well as company culture. Both are key drivers in business valuation.
- Time to Think: I’ve often found that while on vacations, away from the daily tasks of business ownership, I have a chance to do some high-level thinking and planning for my business. Often that’s not even my intention, but thoughts and ideas just come to me when I take time to step away and slow down. Maybe you’ve had similar experiences. Being away from the stress and grind of business operation can free your mind to think strategically about where the business is headed. This commitment to growth and strategy will greatly impact the performance and value of your company.
- Staff Independence: “When the cat’s away the mice will… continue to run and improve the cat’s house, while becoming empowered and independent in their roles, leading to personal fulfillment for the mice and a growing house for the cat.” I’m pretty sure that’s how the saying goes. The point is that with proper guidance and expectations, your employees will do fine while you are away, and the business will grow stronger independent of your involvement. Of all the reasons to take a vacation, this one has the strongest impact on the value of your business. We always say that if the owner can leave and the business holds steady or improves, that business is worth a lot. That level of management and personnel infrastructure is highly sought after in today’s marketplace, and buyers will pay a premium for that type of well-run organization.
So there it is - three compelling reasons to take a vacation this summer. With a little planning and preparation, you can have the most successful summer vacation yet.