Every business is looking for ways to improve its profit. Increasing revenue and cutting costs are always on the mind of the owner. The ways to do it are numerous from better marketing and sales results to vendor pricing and staff costs and so many ways in between. Yet, there is an often-overlooked way that leads to greater business results with everything you do.
This is the same method I use with every one of my clients to grow their profit 10X. We’ve also been able to 10X the value of their firm providing a double win of more money now and later. The magic happens by thinking with the end in mind and changing your focus to getting your business sale-ready. Not that you have to sell it anytime soon. This powerful switch in focus is what accelerates the 10X factor.
Here are just 3 of the 10 factors that go into getting both more revenue and more value.
1. Become Financially Attractive:
The first thing a buyer looks for is positive increasing cash flow. Both you and the buyer want a business that is profitable. Buyers will pay a lot more for your company when it is. Since profitability is already on your mind, looking for more ways to improve it will also improve the value.
The second thing they look for is clean financials. Making sure that your books make profit sense and that you are taking advantage of every tax and financial opportunity available shows that your profit is sustainable.
2. Ensure It’s Independently Operated:
No one wants to buy your headache! Stop being the Chief Everything Officer. You need to have people and processes in place to support the operations of your company. Get your business out of your head and into a duplicatable methodology allows for you to make improvements now. It also shows future buyers how to continue your business with the people to help them. A big bonus for you now is you will gain the freedom you dreamed of when you started the business.
3. Create Multiple Offerings:
One of the best concepts that you can offer your ideal customer is solving more of their problems. Not different completely problems but the next logical problem on their list. Say you help to hire people; next, you help train them. Having more than one offering deepens your relationship with your customer and gives them more reasons to work with you over your competition. Pricing should never be the reason people buy or you’ll always be beaten out by the next ‘sale’. When you have more than one offer, the business is attractive to future buyers and it is also more recession-proof.
Changing your focus on growing your business so that you can sell it someday, creates an attractive business that pays you very well while you own it. It is also more enjoyable to own. Finally, it provides a continuation of your legacy and a fantastic financial retirement boost. Weren't you planning on selling your business when you retire? Here's the way to ensure that you can get the maximum value for it.
Marcia Riner is a business growth strategist and the CEO of Trajectory Consulting. She helps professional service firm owners to optimize their business, drive growth, and to be in a great position to sell it someday. Together, she helps you create your roadmap to improve, scale, and maximize the value of your company.
Marcia hosts a weekly podcast with videos on YouTube @ www.Youtube.com/profitwithaplan and audio @ www.profitwithaplan.com. She also shares business growth tips on her YouTube Channel @Marcia Riner
She runs a masterclass where she teaches business owners how to optimize, grow, and maximize the value of their business so that they can sell it someday @ www.Scale2Sell.biz
Want more great ideas, download Marcia’s newest eBook “Think Outside The Box – 10 Reasons To Get Your Business Sale-Ready Now” available on www.TrajectoryBiz.com