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 the below 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?
Market expansion – Have you got any existing products that you can sell into new markets?
Product expansion – Have you got any new products that you can sell into your existing markets?
Diversification – Have you got 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 founder).
5. Brand: How does your brand stack up in relation to others in the market?
6. Reduce debt (clean up balance sheets).
Katrina Brennan is the Principal at SRJ Walker Wayland – Business Growth advisors, accountants & auditors based in the Moreton Bay, Brisbane & Sunshine Coast regions.