Renovate your business for much the same reasons as you renovate your home.
by Rob Keogh | 5 March 2020
People seem to love renovating their home, even though they know it often involves some pain and inconvenience. Renovation is a transition that can take some months, but once the decision is made, it is easy to become immersed in the process. Redesigning the space, adding capacity, colour and amenity.
I have watched my friends do this with exceptional results and I have done it myself. I loved the detail involved in designing flow and space. The ergonomics of measurement that seems to make space and fittings flow efficiently around increments of 600mm, 750mm, 1200mm and so on. Some people say it is just a hang-over from imperial measurement, some believe it has its base in the dimensions of the human body.
As the project comes together, you get to see your own ideas take shape. Engaging colour and design experts, help to take our vision to a new level. Experts often extend the scope of what is possible, adding function for important lifestyle elements, while at the same time presenting options that enhance the ultimate commercial value. A great home reno makes your whole living environment more enjoyable and rewarding. It is an accomplishment you feel proud of every time you walk in the door.
From an investment perspective, the price you pay for a smart renovation, is added straight to the asset value of your home. Like putting money in the bank and receiving bonus interest in the form of the lifestyle amenity you get to enjoy every day.
Renovating a business is exactly the same. We’re not talking about a shop-front refit, but a strategic business renovation. Updating performance tools and re-calibrating to improve flow and add efficiency, for all people involved inside and outside the business. Designing new systems to expand capacity. Enhancing the colour and branding, so that everyone that knocks on the door sees the full potential on offer.
Value is typically measured by comparing the cost of alternatives. In business the most expensive course of action can be just to do nothing. Cost in lower productivity. Cost in missed sales and growth opportunities, either because the business is not visible in major markets or does not have the scale, efficiency or technology necessary to compete.
A smart business renovation, adds straight to the asset value of the business. Just because you are not selling today, does not mean you should not always have an eye on the market value of the business. An efficient, well balanced business is also more rewarding to run, both in personal terms as well as financially. The benefits include less negative time spent on client delivery issues (also known as FUFU – Fix Up Fluff Ups), as well as improved staff morale and retention, from your team having industry-leading tools and performance platforms.
Renovating the structure of your business is also a good form of insurance. A business can become dependent on what we, or other key staff have in our head. How much does the value of your business drop when you or key staff are removed from the picture? Good systems are what you keep when knowledge walks out the door. That applies to whether you just want to take a family holiday, or your top team member has decided to relocate to Byron Bay.
It is easy to get a picture in your head of a new family room and kitchen, flowing out onto a deck, pool and landscaped yard. Now try to imagine your business reno with the same satisfaction; with real-time reporting with a dashboard on your phone, streamlined operational systems and smooth sales workflows . . .