Many owners run their business to fund their lifestyle and that of family members, but do not get time to focus on maximising business value when exiting.
Review these six steps for your business to be ahead of the game.
1. Profit improvement: perform a waste audit on your business. Waste elimination is one of the most effective ways to increase profitability in a business.
2. Review growth plan: market penetration – can you think of any existing products that you can grow in your existing market? For market expansion, have you any existing products that you can sell into new markets? For product expansion, have you any new products that you can sell into your existing markets? For diversification, have you any new products that you could develop in your new markets?
3. Lock in revenue (contracts).
4. Lock in management (not as much reliance on the founder).
5. Brand: how does your brand stack up in relation to others in the market?
6. Reduce debt (clean up the balance sheets).
Katrina Brennan, Principal, SRJ Walker Wayland Business Growth Advisors, Accountants and Auditors, Level 2/2 Innovation Parkway, Birtinya, 5301 9957, srjww.com.au
This column is part of our Business 2 Business (B2B) series featuring industry leaders sharing their expertise. For more great articles, SUBSCRIBE to our FREE news feed, direct to your inbox daily. All you need to do is enter your email below.
