Business Owner Breakthrough Podcast

Value Builder Driver #3: The Switzerland Structure

Pete Mohr Season 8 Episode 10

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In this episode of the Business Owner Breakthrough Podcast, Pete Mohr discusses the importance of the Switzerland Structure, which emphasizes making a business independent from any single customer, supplier, or employee. He highlights the risks associated with customer dependency, supplier dependency, and employee dependency, and offers strategies to mitigate these risks. The conversation also explores how buyers perceive businesses with these dependencies and the importance of exit planning as a fundamental business strategy.

Takeaways

  • The Switzerland Structure promotes business independence.
  • High customer dependency poses significant risks to business stability.
  • Diversifying customer relationships is crucial for reducing risk.
  • Establishing multiple suppliers can safeguard against supply chain issues.
  • Cross-training employees helps avoid single points of failure.
  • Investing in technology can enhance business scalability.
  • Buyers prefer businesses with low dependency risks.
  • Documented processes ensure continuity in operations.
  • Regular assessments can help identify areas for improvement.
  • Exit planning should be integrated into overall business strategy.

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Pete's Websites:

Pete-Mohr.com
The Exit Ready Business
Kolbe Coach
Simplifying Entrepreneurship

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