The Business Decisions You Can Make Now That Will Drastically Impact Your Company’s Long-Term Worth

The Business Decisions You Can Make Now That Will Drastically Impact Your Company’s Long-Term Worth

If you’re reading this blog, something tells me you have an eye toward the future. That’s fantastic. Looking for ways to improve your company now so it will be more attractive in a future sale scenario is one of the absolute best ways to prepare for your exit.

Hire and Train Top-Flight Managers

It may be sad but it’s true: Buyers don’t want you. When it comes time to sell your business, your buyer is going to take a close look to make sure you’re not too involved in your company. You should have a number of managers and executives who not only have years of experience but also retain the majority of the responsibility at the company. Get in the habit of hiring people smarter than you.

Streamline Your Systems and Processes

Take the time now to make sure the systems and processes in place at your company are as logical, efficient, and streamlined as possible. It’s also a good idea to establish a reporting system that automatically monitors sales activity, quality control, and other critical areas. Another step you can take now to ensure that your processes are streamlined is to create a thorough owner’s manual. The Road Map: Creating an Owner’s Manual for Your Business.

Broaden Your Client Base

Does most of your revenue come from one very important customer? It shouldn’t. Buyers want to make sure that one angry client isn’t going to break the bank. Your company should have a broad, diverse base of established customers, none of which represents more than a small percentage of your total revenue.

Protect Your Intellectual Property

Inc. magazine points out that intellectual property is a valuable asset that needs to be protected and insured. If you haven’t already done so, develop internal controls for intellectual property, start limiting access to sensitive information by employing NDAs when necessary, and have a defense team in place if something were to happen.

Put Together Your Exit-Planning Team

Your exit-planning professionals will be able to tell you personalized ways you can make your company more valuable and stable to future buyers. Unsure who to hire? Read our blog post “Assembling Your Powerhouse Exit Team.”

If you’re looking for more ways to make your company more valuable now and in the future, read my recommendations in Walk Away Wealthy: The Entrepreneur’s Exit-Planning Playbook.