We’re trading in uncertain times at present. But there’s still a pressing need to refine your business model, add value and look at the opportunities for growth.

In this series, we’ll look at some key ways to optimize your business, exploring different avenues to evolve your enterprise and create a legacy you can be proud of.

Six ways to optimize your business

Your game plan might have been to sell the business, achieve a great deal and retire on the profits. But in the current market, it’s possible you’ve had to press pause on this exit strategy.

However, instead of letting the business just tick over, why not get proactive about improving and enhancing your business model, so it’s a more profitable and viable business?

Here are six key areas you should be looking at:

Go digital and automate the business

Now’s the ideal time to embrace digital technologies. With the latest cloud tech, AI and automation solutions you can streamline your operations, improve your overall customer experience and boost sales. You can also explore e-commerce solutions, social media marketing and digital marketing.

Get proactive with your finances

Strong financial management sets the foundations for making the business profitable. Switching to the latest cloud accounting software helps you get a handle on your cashflow, a better overview of costs and a more informed view of your overall financial position. Many accounting platforms will also offer integrations with other helpful business tools, such as inventory, invoicing and point-of-sale (POS) tools.

Build on those customer relationships

Exceptional customer experience helps to build loyalty and drive repeat business. This means getting granular with your customers’ needs, providing excellent customer service and listening to (and acting on ) your customer feedback. It’s the best way to improve your customer service and brand.

Diversify into new areas

It’s easy to get stuck in a rut when it comes to your product range and industry focus. One way to shake things up is to diversify and explore new product ideas, new customer audiences and new niches. Diversification can reveal a whole new customer demographic, not to mention additional revenue streams.

Nurture your team and employee experience

Engaged employees are the foundation of a great business. Invest in training and development to improve your team’s skills and motivation and do everything you can to build a positive work culture. When hiring, look to create a diverse and inclusive team of people, so you have a real melting pot of talent, ideas, skills and experience in the business.

Look for strategic partnerships

Navigating the market is far more successful when you explore the benefits of business partnerships. Connecting with other businesses can extend your market reach, reduce costs and allow you to share resources. You also open up your brand to a whole new customer audience, boosting sales and growth.

Talk to us about optimizing your business model.

There’s no single strategy for turning around the success of your business. But looking at new ideas, markets, products and business tools can certainly add considerable value.

If you’re looking to add some pizazz to your business model and operational effectiveness, drop us a line. Our team will be happy to review your current business and identify the opportunities.

The following content was originally published by BOMA. We have updated some of this article for our readers.

Selling Your Business Part 4: What Happens After You Exit?

You’ve completed the sale of your business! Now there’s an important question to ask yourself – what happens next and how do I see the next chapter of my life panning out?

In this series, we’ve given you all the advice you need to plan your exit, add value to the business, negotiate a great deal and define your new pathway once the business is sold.

So, let’s explore how your journey might look once the sale is complete.

Exiting your business is a big deal. You’ve spent years taking this enterprise from startup to established business, putting your heart and soul into making this company a success.

So once the ink is dry on the sale contract and the money is in the bank, you’re going to need a new challenge to fill the void of no longer being ‘the big boss.’

Here are five potential pathways to take:

Retirement

After all these years of hard work and pressure, maybe it’s time to enjoy some well-deserved retirement? If you’re planning to retire and put your feet up, put some thought into factors such as financial planning, hobbies you might want to explore and travels you might want to go on – ensuring you have a comfortable lifestyle.

Invest in other businesses

If you want to keep some business interests alive, why not explore opportunities to invest in other businesses or new startups. This can provide a source of income and allows you to stay engaged in the business world, using your wealth of experience and management skill to guide other promising companies.

Start a new venture

If you’re itching to try another new business idea, why not use the profits from your sale to found a new business or venture. This might be a new private business, or even a social enterprise that reflects your current passions and interests. Having learned your mistakes first time around, you have the knowledge and experience to turn business #2 into another great success story.

Become a non-executive director (NED)

If you don’t want the hassle of being the boss, but want to keep your hand in, becoming an NED makes good sense. You can use your experience and expertise to contribute to the governance and strategic direction of other companies, while keeping your own business skills fresh and up to date.

Get philanthropic

Why not use your wealth and new-found free time to do something good for your community? Think about giving back to society through charity work, philanthropic activities or setting up a social enterprise. It’s a fulfilling way to make a positive impact while also giving you a challenge to get your teeth into.

Talk to us about planning your post-sale lifestyle

Some ex-business owners enjoy the comforts and relaxation of retired life, while others get itchy feet and want to return to their entrepreneurial roots as soon as possible.

Talk to our team and tell us about your post-sale plans. We can help you plan your lifestyle, set up your wealth management strategy and open up new business opportunities along the way.

The following content was originally published by BOMA. We have updated some of this article for our readers.

Selling Your Business Part 3: Getting a Good Deal

You’ve spent years growing your business and adding value to the company. Now it’s time to sell up, get a good deal and liquidize the equity you’ve had locked up in the business.

In this series, we’ll give you all the advice you need to plan your exit, add value to the business, negotiate a great deal and define your new pathway once the business is sold.

Let’s look at some important ways to achieve the best possible deal for your business sale.

Selling your business is generally the end step in a much longer journey. If you’ve put together a detailed exit strategy, you’ll have been planning this sale for some time.

The important thing at this point is to make sure you get a great deal and realize the best possible sale price – giving you the return you deserve for all your hard work.

To put yourself in the optimum position when looking for a buyer, here are a few tips:

Know the value of your business

Make sure you’ve conducted a thorough valuation to understand the true market worth of your business. This gives you a strong negotiating position and helps you set a realistic asking price that’s attractive to buyers.

Research the market in your industry

Take a deep dive into current market trends and comparable sales to understand what a fair price is for a business in your industry. Armed with this info, you’re in a good position to negotiate a competitive price.

Highlight the strengths in your business

Use your sales materials to emphasize the unique selling points and competitive advantages of your business. This could include having a strong customer base, explaining the experience of your management team, or outlining the benefits of your proprietary technology and intellectual property etc.

Know the funds you need to realize

You’ll have plans for what happens after the sale, whether that’s a comfortable retirement, or the founding of a new enterprise. Make sure you know how much equity will be needed to fund this lifestyle, or startup plan. This number will drive your asking price for the business and your own profit from the sale.

Be prepared to negotiate

You may have a price in mind that your prospective buyer is unwilling to meet. Be prepared to negotiate on price, terms, and other aspects of the deal. Understand your bottom line, know the return you need to achieve and be willing to compromise in some areas, when necessary, to seal the deal.

Always seek professional advice

Mergers and acquisitions is a specialist area. Think about consulting with a business broker or legal adviser to guide you through the negotiation process. With the benefits of experienced, professional advice, you’re far more likely to get the best possible deal for the company.

Talk to us about planning the sale of your business

Finding the best buyer and securing a mutually beneficial deal is one of the most critical points in your exit strategy. Getting it right now is vital for your long-term plans and financial security

The following content was originally published by BOMA. We have updated some of this article for our readers.

Selling Business Part 2: Adding Value Prior to the Sale

At the point of selling your business, getting a good price for the company will be a major goal. A key way to achieve this is to add value to the business as part of your ongoing exit strategy.

In this series, we’ll give you all the advice you need to plan your exit, add value to the business, negotiate a great deal and define your new pathway once the business is sold.

You’ve put blood, sweat and tears into this business. So, you’re going to want to achieve a sale price that reflects this hard work, giving you the funds to start the next phase in your journey.

Your potential buyer will be looking for a profitable, well-run business that can prove it’s a viable enterprise. To do this, it’s vital to look at core ways of improving the attractiveness of the company, gradually adding incremental value and allowing you to negotiate a good price.

Let’s take a look at some important ways to add value to the business:

Increase your profitability

A buyer wants an acquisition that will turn a profit. To boost the company’s profitability, look at improving your margins, reducing costs and increasing revenues. Ways to achieve this can include streamlining your operations, negotiating better deals with suppliers and increasing brand loyalty with your customers.

Strengthen your financial performance

It’s important to run a tight financial ship. Aim for the company to be in a positive cashflow position, reduce your ageing debt and strengthen the balance sheet to demonstrate financial stability. This will mean getting in control of your inventory and spending, being proactive about collecting outstanding receivables and exploring financing options, such as invoice finance or bank loans.

Nurture your customer relationships

Loyal customers spend more and provide a stable pipeline of sales and revenue. Building these strong customer relationships is a critical part of adding value, and can start by providing excellent customer service, offering loyalty programs and actively seeking (and acting on) customer feedback.

Invest in the company’s growth

A growing company is an attractive proposition to any buyer, so it’s important to continue investing in growth. Explore new products, services or markets to expand the business’s potential, add value and show the potential behind your business concept. The R&D, strategic planning and resourcing that’s involved will be an investment that pays off once you have an interested buyer.

Prepare for the due diligence process

Before a buyer makes an offer, they’ll want to carry out due diligence checks on the business. To be ready, you’ll need to get your financial records, contracts and other relevant documents in order, and make sure all the information is easy to find and access. Making these checks simple and straightforward helps potential buyers assess the business’s value and gain confidence in the company.

Talk to us about planning the sale of your business

Making your business more attractive to a potential buyer takes good planning, patience and a real focus on adding value. Starting this value-add process early is vital.

If you want to start adding value to the company, prior to selling up, come and talk to us. Our team can help you deliver an exit strategy that increases value and delivers a great deal.

The following content was originally published by BOMA. We have updated some of this article for our readers.

Selling Business Part 1: Planning Your Exit

Building up a business can take years. For some, it will be a lifetime’s work. So when the time comes to sell, you want to make sure you get the best possible return on your investment (ROI).

In this series, we’ll give you all the advice you need to plan your exit, add value to the business, negotiate a great deal and define your new pathway once the business is sold.

Realizing the value that’s locked up in your business isn’t something that happens overnight. Most owners will begin planning the sales of their business well in advance – sometimes years before they actually plan to exit and sell the company to a new owner.

This foresight and planning is essential, giving you plenty of time to form your exit strategy and make the business an attractive proposition to prospective buyers.

Let’s take a look at the important elements to include in your sale plan:

Define your goals for the sale

It’s important to articulate your objectives for exiting the business, whether it’s financial gain, handing the business to the next generation or personal reasons such as ill health or a desire to retire. Sit down and ask yourself WHY you’re selling up and make this goal (or goals) the heart of your exit strategy.

Decide on a timeline

Selling up isn’t a process that can be rushed. Establish a realistic timeline for your exit, taking into account factors such as your age, health and the overall performance of the business. Having a five-year plan for your exit is common, giving you the necessary time to plan your exit and transition the company over to a new owner. Set clear milestones to achieve and aim to stick to your timeline, where possible.

Get a realistic valuation

To understand your potential ROI, it’s vital to get an accurate valuation of the business. Work with your accountant to understand the value of your business assets and engage a broker with experience in your sector to get a valuation of the whole business. Knowing the true worth of the company will help you negotiate more favorable terms with a buyer, generating a better sale price.

Deal with your housekeeping

A buyer wants to purchase a business that’s trouble-free, so it’s vital to address any issues that could negatively impact the company’s value. Make sure you’ve dealt with any outstanding debt, legal matters or operational inefficiencies well before the sale. This will add to the attractiveness of the business and puts you in a strong negotiating position.

Make sure you have multiple exit options

You might have one very clear preferred exit option in mind, but make sure you give yourself a variety of other routes to consider. Explore various exit strategies, such as selling the business outright, transitioning ownership within the family or pursuing an IPO. Think through the pros and cons of each option and choose the one that best suits your current goals and circumstances.

Talk to us about planning the sale of your business

As you’ve seen, there are several important steps to plan before you can think about putting your business on the open market. The earlier you start this exit strategy, the more time you’ll have to plan the fine details, add additional value and achieve the deal you want.

If you’re thinking now’s the time to plan your exit, do come and talk to the team. Together, we’ll work on an exit strategy that hits your goals and delivers the best possible ROI.

The following content was originally published by BOMA. We have updated some of this article for our readers.

Did you know that diving into the data could help your operations run a lot more smoothly?

In this series, we continue to look at how data-driven decisions sit at the heart of running a successful business.

With so much of your operational processes now being run and managed in software, there’s a massive opportunity to sift through this data to find the useful data insights and patterns.

Every business strives for better efficiency, productivity and cost-effectiveness, and this is where data analysis and making informed, data-based decisions can be a gamechanger.

Let’s take a look at how data can transform your operations:

Optimized inventory management

By getting to grips with your historical sales data and demand patterns, you can quickly optimize your inventory levels. This reduces the risk of running low on popular product lines and stops you wasting precious cash on inventory that then sits gathering dust in the warehouse.

Improved supply chain management

Reviewing your supply chain data allows you to spot the potential shortfalls before they happen. By being better informed, you can identify potential disruptions in your supply chain, take proactive steps to find other available suppliers and even shop around for more cost-efficient options.

Enhanced production planning

Looking through your production data can be enlightening. Armed with the right data insights, you can optimize your production schedules, reduce waste and improve efficiency across the whole process, so you’re running an altogether more effective production and manufacturing process.

Predicting the need for maintenance

Analyzing historic data for your hardware systems gives you a great overview of when repairs may be needed. Backed up with the right data foundations, you can predict equipment failures and schedule maintenance more proactively, reducing the negative impacts of downtime and repair costs.

Resource allocation

Reviewing your utilization data helps you spot where your people could be used more effectively. Data reviews can help identify areas where your human resources are under-utilized or over-utilized, making it easier to allocate the right people on specific projects and to build teams that can truly help you grow.

Talk to us about using data to improve your operations and inventory

The more information you have about your business operations, the easier it becomes to spot the issues, spiraling costs or productivity black holes that are eating into your efficiency.

Our team would love to talk you through the positive impacts of data-driven decision-making, and how being better informed helps you take your business to the next level.

The following content was originally published by BOMA. We have updated some of this article for our readers.