Business Evaluation Benefits
Have the foresight to get a complete evaluation done early in your business career, and use this “base value” to build an organization that is always ready for opportunity.
Improve Profits Today and Salability Tomorrow
“I wish I’d known what makes a business valuable years ago” is an exclamation we often hear when discussing a valuation report with an owner/client who hired us to assist them in the sales process.
If they’d known the value drivers earlier, during business development, they could have focused their efforts on building maximum sales desirability, which in turn, could have added meaningful efficiencies and profits in the years preceding their eventual sale date. When a business is attractive to potential buyers today, it will always be ready for sale and, if it’s always ready for sale, it’s always ready to expand; therefore, it is also more profitable along the way. It’s a simple concept, right? Yet, it’s rarely accomplished. Why?
Business owners, too often, spend their time working as employees in the business, rather than as CEO (Chief Executive Officer), crafting the corporate vision, executing the vision, and otherwise working “on” the business. The idea of preparing their business for sale hasn’t even entered their consciousness and, when it does, any action is postponed because they equate a business sale with retirement and,... they’re too young to retire!
Retirement has nothing to do with the decision to always be ready for expansion or sale. Retirement is an option, to do something else in life, after a business career. Being prepared for sale is about operating smartly, efficiently, profitably, and without a requirement that the owner fill a “job” in the company! If you really want to know where you stand and the actions worthy of your energy today, request a business evaluation. Whether you choose the Perpetual Business Evaluation Package or use a resource with whom you already have a relationship, the resultant information will be priceless.
A meaningful evaluation should contain all of these metrics: Sales trend; Gross margin trend; Key employee longevity; Support staff longevity; Owner dependency; Standard operating procedures guide; Site security; Cash flow; Employee retention plans; Appearance; Growth outlook. Do you notice a theme within the list? A focus on your people is essential to a healthy enterprise: Longevity, Retention, and Operations Guide. When the above are performed well, you, your people, and your business will prosper! Memorize this, “It is only as we develop others, that we permanently succeed.” (Harvey Firestone).