Business owners decide to sell for any number of reasons. Some have extenuating circumstances, some are looking at retirement, and some simply decide they want to move on to something different. Whatever the reason, all these business owners have one thing in common: they want to be able to get as much as possible for the years of work they’ve put into their company.
If you’re considering selling your business soon, you’ll want it to be as profitable as it can be. You can do that by increasing sales, but the easiest way to increase profits quickly is by cutting expenses.
Why focus on cutting expenses before you sell? Here are four great reasons:
Cutting Expenses is Faster
Whether you’re selling goods or services, sales take time. Increasing your sales can be a process that takes time, effort, and marketing (which costs money). When you work to cut expenses, you can see results as soon as the next month.
Cutting Expenses is Easier to Control
When you focus on sales, you leave a lot up to chance and the talents of your sales team. When you focus on lowering your costs, your results are much easier to control. You can look at your numbers and know what to expect, so you can know exactly what you’re offering to potential buyers.
Cutting Expenses is Easier to Sustain
One thing any business owner knows is that there are highs and lows. Even when your business is successful, sales can ebb and flow. When you lower your operating expenses, you can expect much more uniform numbers from month to month. You don’t have to wonder, because you’ve already done the work of looking closely at your spending and making cuts accordingly.
Cutting Expenses Gets the Maximum Financial Benefit
You as the business owner want to get the maximum financial benefit based on the selling price of your business. If a business is selling for 5 times earnings, and you can add another $100,000 in profit by cutting costs, that theoretically means another $500,000 in increased sales price.
So, how do you get started with cutting your costs? Silverback can help! By simply looking at your bills from last month, we can develop a strategic plan to lower your business’s expenses. If we don’t find any places you can cut costs, you won’t be charged for our services.
You’ve worked hard to build your business; you deserve to profit from it. Contact Silverback to start building your bottom line today.
