For years, you’ve given your all to make your business successful. Now, as you’re approaching retirement, you want to get the very best return on your years of investment.
Is it possible to increase the value of your business before you pass the baton? We think so. There are three areas that are important to focus on as you prepare to sell.
Recurring Revenue
Creating recurring revenue streams will make your business more attractive to potential buyers. These income sources will create revenue for a new buyer right away, and will take off some of the pressure of continuing your success. The new owner will have time to learn the business without having to worry about generating sales right away.
Streamlined Processes
Being organized always looks good to a prospective buyer. No one wants to walk into a mess, so streamlining your processes will make your company more attractive and more valuable. Determine and document routines and procedures and you’ll be handing the new owner a guide to running the business efficiently.
Increase Profitability
Perhaps the most obvious way to increase the value of your business is to increase its profitability. Increasing sales is one way to do this, but the easiest and quickest way to higher profitability is cutting costs. Reducing your expenses leaves more money in the profit column, and makes your business that much more desirable to a potential new owner.
If you’re planning on retiring or selling your business in the next five years, we highly recommend an independent analysis of your expenses. At Silverback, we provide an unbiased look at your expenses, and help you determine where you can cut costs and become more efficient. The result is a more streamlined business that maximizes its profit potential.
Contact us today to start reducing unnecessary expenditures, or take a look at how cutting costs improved this commercial real estate developer’s bottom line and portfolio value.
You’ve worked hard to establish your business; we can help you make the most of it.
