To receive our quarterly e-newsletter filled with the kind of news you can use, register here.
Business owners now have to work even smarter to make their businesses as attractive as possible in the current economic climate in order to generate interest from a buyer and to maximise the value on sale. The key to success is beginning the process early as decisions you make during the natural life cycle of the business will affect the future value of your business.
So what is the business equivalent of the common sense tips you learn from the various house doctor programmes on television, which teach us how we can increase the value of our homes and ensure that they sell in the future for the optimum price? In these programmes, we learn about the selling advantages of creating ‘neutral colour schemes’ and ‘versatile living space’ in our homes – so what sales triggers can we build into our businesses to ensure the maximum value on exit?
Well, there is a lot of non-financial stuff you can do which can increase the value of your business. For example:
However, the real fundamental is to make sure you have the financials sorted - having a profitable well controlled business is always an attraction. So, for example, you need to:
As you can see from the above short list of examples, it’s very worthwhile to keep the end game in sight as you make decisions over the lifetime of your business because, once you have all the above ‘DIY’ bases covered, then your business should be looking very attractive and have the optimum chance of securing the best value on exit.
For more information and advice, contact Carol Wright, at firstname.lastname@example.org