Grooming Your Business
Business Improvement Strategies
What are the strengths and weaknesses of your business?
The difference between security and obscurity may be razor-thin. A well-planned strategy and pre-divestiture/value enhancement program can grow and protect the value in a business you worked so hard to build. Successful strategic planning requires following a process. Skipping steps almost always leads to sub-par results. There needs to be time for research, brainstorming, analysis and documentation.
Extraordinary macro and demographic events can cause market distortion. In this case, the supply of businesses on the market at any one time over 5 to 10 years will very likely exceed demand. While the number of businesses expected to be in transition may vary during each of the peak years, being prepared is paramount.
What does all this mean to you?
Cash flow or the potential for future cash flow is essential to value creation. Positioning the business to generate cash flow, now and in the future, provide alternative methods of transition if that is an option you are looking for later.
Good businesses may be overlooked in a crowded market. A business owner must focus on creating value, customer and employee satisfaction, financial growth, and if looking to sell at a later date, acquisition attractiveness. Remember: “Good is the enemy of great.”
The business itself must actively enhance value, improve sales and marketing, increase production, improve process and procedures, enhance financial management and acquire and maintain top talent. In other words, it should be able to run without you. Have you positioned your business in such a way? By doing the due diligence, it can. If selling your business is your retirement plan, buyer expectations for performance will elevate with a finely tuned business model.
Every small business owner faces obstacles to growth. Some obstacles are external such as market trends, competitors, regulations, etc. Some obstacles are internal such as people, policies and outdated processes. We work with organizations at almost every stage of the business life-cycle. We determine what factors are holding the business back, devise effective solutions, and guide our clients in implementing them. Total Business Services Inc. helps clients define a clear vision, develop a clear roadmap and work closely with them to achieve their goals.
If looking to set up a business for sale, buyers may dictate the timing of your exit. You may not have total control. Readiness is critical.
At Total Business Services Inc. of Waco, TX, we teach business owners to actively manage business risk no matter what the desired outcome.