Understanding the Eisenhower matrix
For those familiar with Stephen Covey’s 7 habits of highly effective people, you might recognize the Eisenhower matrix.
At its essence, this is a tool that helps prioritize tasks based on two factors – importance and urgency.
Covey explains how most people tend to spend too little time in the “important but not urgent” bucket. They either firefight “one crisis after another” (we all know that person), or waste away their time on frivolous activities like doomscrolling on social media.
The most effective people, however, recognize the power of investing most of their time and energy on things which are important, but not necessarily urgent. This is effectively the opposite of procrastination – whereby we tend to defer those tasks which may not be pleasant or urgent but are critical for long-term success. In our personal lives these can be things like your annual health check-up, the spring-cleaning of your house, or the setting up of a household budget. In business, the may be formulating growth strategies, financial planning and cybersecurity measures.
Although not all procrastination is bad (there is research that shows that used wisely, a certain amount of procrastination can actually be good for the creative process as it allows ideas to “brew” and for the brain to form “connections), in most instance, we can all benefit from paying more attention to the “important but not urgent” bucket.
Why ignoring important but not urgent tasks is risky
The problem is that if we don’t deal with these things, the outcome lead to binary negative consequences quite quickly.
- If you don’t take care of your health when you are young, you run a much higher risk of disease and early death;
- If you don’t take out life or business insurance, an unexpected accident could devastate your company and leave your family destitute.
What relevance does this have with regards to business and in particular, building a business of value you might ask?
According to bizval’s proprietary data, the key reasons many businesses are not investment ready relate to “Important but not urgent” factors. For example:
- 40% of businesses lack a management team, making them over-reliant on owners.
- 45% depend heavily on a single client, creating high financial risk.
- 48% fail to budget properly, leading to cash flow issues.
If you are a business owner looking to build a better business and increase the value of your company, here are five essential but often overlooked focus areas.
1. Build strategic partnerships
In the modern world, there is a huge focus on instant gratification. We see it all over. From our personal lives to business. Think of how dating apps have contributed to a rise in “casual” and “disposable” relationships. How entrepreneurs are impatient to grow customer numbers and revenue as quickly as possible.
If one zooms out a bit, there is huge value in building long term strategic partners. It’s not always about the “quick-win”. Building deep partnerships takes time, however, deep and well-nurtured business relationships can create a strong competitive moat.
Rather than chasing quick wins, successful entrepreneurs collaborate with industry leaders, suppliers, and complementary businesses to drive long-term revenue growth and market positioning.
2. Reducing owner dependence
Much like parents must prepare children for independence, business owners must structure their companies to operate without their daily involvement. This includes:
- Developing a succession plan.
- Implementing standard operating procedures (SOPs).
- Building a strong leadership team.
Micromanagement and ego can hinder this process, but stepping back ensures long-term scalability and saleability.
3. Strengthen cybersecurity and data protection
In today’s digital world, cyber threats pose a major risk. Many businesses assume they’re immune until it’s too late. Consider:
- What would happen if a hacker accessed your customer data?
- Could your business recover from a data breach?
A founder I spoke with lost millions due to a cyberattack and had to shut down operations. Even something as simple as losing email access for 24 hours can cause serious disruptions.
A few essential cybersecurity measures include:
- Implementing data encryption and regular backups.
- Using multi-factor authentication (MFA).
- Training employees on phishing and hacking prevention.
4. Improve financial metrics and reporting
Accounting isn’t just about compliance. Businesses that only do the bare minimum for tax authorities miss out on financial forecasting and profitability optimization.
Accurate record-keeping allows for:
- Better cash flow management.
- More informed investment decisions.
- Stronger financial statements to attract investors and buyers.
5. Conduct regular business (and personal) health checks
Many business owners recognize the importance of annual business reviews but never get around to doing them. Just like personal health check-ups, routine business health assessments can detect issues before they become major problems.
There are so many natural “opportunities” to do this – For example at the time of doing annual financial statements, the time of team performance reviews, dead time just before or after the holiday, yet we fail to do so.
It’s really no different to an annual personal health check – Blood sugar, cholesterol, fitness, even genetic testing – Knowing one’s health status can vastly improve one future quality of life, but also pick up potential risk markers and address them before they become a problem.
At a minimum, I would suggest the following things get covered in an annual business health check:
- Business valuation – Whether it’s a quick check or a more comprehensive valuation, this is a great composite measure to track your progress The bizval exit readiness scorecard is a great add-on which identifies other areas of opportunity.
- Financial and operational review – A deep dive into your financial processes, usually done with the assistance of a CFO or xCFO offers deep financial insight.
- Scenario and strategy planning – It’s important to prepare of alternative realities so you are not like a deer in the headlights if unexpected things happen.
- Systems and controls audit – An annual review to check if your systems, processes and controls are still suitable and scalable ensures that your foundation for growth is steady.
- Succession and disaster recovery plan – Can your business survive without you? What happens if something happens to you? Can the business still run? Have you got appropriate cover and insurance in place? These are all key questions that need to be answered.
Conclusion
Many business owners fail to recognize their blind spots. This is where mentors, fractional executives, or peer business owners can add value. They help ensure that these important but not urgent activities don’t get ignored.
By proactively focusing on these five key areas, you can build a resilient, scalable, and high-value business ready for future growth and potential exit opportunities.
FAQ’s
FAQs on “5 Important but not urgent things that can dramatically increase the value of your business”
1. Why is focusing on “important but not urgent” tasks crucial for business success?
Many businesses fail because they prioritize urgent issues while neglecting long-term strategic planning, financial stability, and cybersecurity, which are critical for sustainable growth and investment readiness.
2. How can strategic partnerships increase business value?
Building long-term partnerships with industry leaders, suppliers, and complementary businesses fosters market positioning, enhances revenue stability, and creates a competitive advantage that quick-win strategies cannot achieve.
3. What are the risks of owner dependence in a business?
Businesses that rely heavily on the owner struggle with scalability and saleability. Implementing succession planning, SOPs, and leadership development ensures the company can thrive independently.
4. How can businesses protect themselves from cyber threats?
Companies should implement data encryption, regular backups, multi-factor authentication (MFA), and cybersecurity training to mitigate risks associated with data breaches and system failures.
5. What is included in a business health check?
A comprehensive business health check includes business valuation, financial and operational reviews, scenario planning, systems audits, and succession planning to ensure long-term stability and growth.