Generally speaking, an exit strategy will be put in place years before your planned exit date.

This gives you time to work on your sale plan and deal with any succession issues. But more importantly, it gives you the time needed to add additional value to the business prior to a sale.

Every business has its own unique sale value, based on the size of the business, the worth of its assets and the perceived value of the company on the open market.

But what can you do to add value to your business and achieve a better sale price?

Make sure you’re running a tight ship

When you sell a house, estate agents will advise you to redecorate, clear out the rubbish and add more to your sale price as a result. The same is true of selling a business.

A potential buyer will generally want to purchase a business that’s in good shape. Sometimes a buyer will purchase a badly performing business to either a) whip it back into shape, or b) buy it cheap, sell off the assets and make a profit. However, if profit is what they’re looking for, a well-organised and efficient business is a better prospect.

Adding value starts by doing your housekeeping and making sure the whole business is in a good position to hand over. That means having:

• • • Modern, digital systems to keep your operations efficient, secure and well integrated
    • Excellent record-keeping, compliance and governance procedures in place
    • An excellent customer base to provide stable sales and good revenues
    • A good brand awareness and positive reputation in your sector
    • Efficient executive, management, operational and administrative teams to run the business in the smoothest and most effective ways.

Resolve any ongoing business issues

Every business will have a few ongoing business issues to contend with. These could include legal worries, court cases or bad debt in the business, and they can all have a negative impact on the company’s value. The more you can do to resolve these issues and present a worry free environment for the new owner, the better.

Work with your lawyers, solicitors, HR advisers and accountants to find resolutions for any long-standing problems in the business. If you can hand the business over without a long list of potential headaches for your buyer, that’s likely to add value to the business. Trust is also important in a sale. Being transparent and open about any previous issues will also create a better relationship between you (the vendor) and your buyer.

Improve your financial health

Most buyers will be looking to purchase your business and turn a healthy profit. To do this, they’ll want to know that the company is financially healthy. This means having books that balance and plenty of potential for them to continue this company as a profitable venture.

So, which areas of your finances should you be looking at? The key here is to be in control of your financial management, and to have a strategy in place that will improve each area of the business over time as you near your sale date.

This will include

• • • Strengthening your balance sheet, so you can present an attractive set of accounts
    • Improving your profit and loss, by increasing revenues and cutting your expenses
    • Boosting your cashflow position through careful cashflow management
    • Reducing your debt liabilities, by resolving late payments and bad debts
    • Polishing up your credit score, by partnering with a credit improvement specialist
    • Making sure the business is well funded, by working closely with lenders.

Get your executive team ready to take over

You may well remain the lynchpin in your current business. But a business that’s still 100% reliant on its founder is not an attractive proposition to a buyer. If the business is still reliant on your everyday operational input, and you then walk away, that business can no longer function effectively. To remedy this, you need to step back and get your team ready to take over.

The easiest way to do this, is to think about the key areas where you still have input, and to then systemise these and put them under the remit of a member of your executive team. If you’re still signing off the payroll, pass this to your finance director. If you’re still taking part in all client sales presentations, defer this to your sales director.

You’ll need to be able to sell up and step away from the business without there being any operational or leadership issues for the new owner.

Work with your advisers to proactively add value

Business advisers in the M&A market have the advantage of having worked on hundreds of different business sales, across a multitude of sectors. They know what looks attractive to a buyer and what the main red flags are in a purchase. And, importantly they know how important it is for your business to have a razor-sharp focus on adding value.

A good firm of advisers delivers a range of different advisory services. By gradually enhancing every element of the business, you’ll end up with a far more attractive business to sell.

Keep any staff problems, legal issues or accounting challenges to a minimum, so the business is as attractive as possible to potential buyers, and the sale can be completed quickly.

Talk to us about adding value your business

To meet your personal and financial goals for this business sale, you want your company to be an attractive proposition on the open market. This process of added value isn’t instantaneous, but with the right advice and planning, you can move towards a more valuable sale price.

If you’re in the process of planning your exit, do come and talk to us. We’ll help you plan your exit strategy, adding value at each stage of the plan to boost your return from the sale.

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

It can feel challenging to chase up payment of invoices when the economy has been down, but it is important to keep cash flowing into your business so you can cover expenses and meet your obligations to others.

As with all dealings in more difficult times, some empathy and a lot of open communication can go a long way.

The following tips are useful to keep in mind when asking for payment.

Communication – Connecting with your customers is important. Try to make it personal to their situation rather than a one-size-fits-all email. Connecting on a more personal level shows you value them and are conscious of the impacts that the current situation may be having on them. The empathy you show now will also be remembered when the economy recovers. Be proactive – early communication will help you stay on top of cash flow and will also alert you if you need to account for late payments.

Offer flexible payment options – for customers who can’t pay in full, consider breaking invoices into multiple payments with payment terms moved to a longer timeframe. Set up a credit card facility to give customers other options for payment. After all, the easier you can make it for them to pay you, the quicker you will get paid. If you don’t have payment services set up in your accounting software, we can help you do this. Offering a discount for early payment might provide the incentive, for customers who can settle, to pay your invoice before others.

Total Outstanding – Make sure you keep track of how much customers are in arrears. While you can continue to allow credit, you want to make sure you’re not creating too much risk. Allowing continual extensions to payment while also letting more to be added to their total amount outstanding can create a cashflow crunch. Get in touch if you want help to better track your cash flow.

Keeping cash flow going is vital for your business so the earlier you communicate with customers the better.

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

When you run a small business, the amount of work can ebb and flow.

Unexpectedly busy periods can create too much work and stress for a small team or one-person business. But if a surge is seasonal or unreliable, you don’t necessarily want to commit to taking on another employee.

One solution is to use outsourcing to give you some flexibility during busy periods.

What could you outsource?

There are several types of jobs that can be ideal for outsourcing:

• Tasks you dread, usually procrastinate or that cause you massive stress
• Tasks where you or your business have low expertise
• Those tasks which don’t require the contractor or freelancer to access your systems or deal with your clients.

For example, if you aren’t managing your digital marketing, outsourcing your social media management could work well. Or it might be branding, HR or customer service. And if you need help with your payroll or accounts, we’re only a phone call away.

If you can take stressful tasks off your plate, or reduce your workload at peak times, you can increase your revenue and productivity without overcommitting to payroll.

Who could do the work for you?

We’re here to support you with your accounting and payroll requirements. For other types of work, you could consider a local or an offshore provider. There are plenty of platforms and organisations that will help you, but do shop around as the quality varies enormously.

The advantages of a local provider are that they’ll be in the same time zone, with no language barrier and operating under the same regulations. International providers, on the other hand, can be considerably cheaper.

Need help getting started?

Considering outsourcing and wondering how much to spend or where to start – or you need help with accounts and payroll? Get in touch, we’d love to help.

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

Contracting or freelancing requires you to wear a lot of hats.

Relationship-building, keeping track of your time, marketing your skills and actually doing the work. But one of your priorities should also be establishing how you handle your money and setting the groundwork for good habits.

Understand your deductions

Before you start, it’s essential to understand what expenses you can and can’t claim. This means you’ll keep the right receipts and track the right expenses. Figuring out what’s what can be a little confusing as everyone has a different working set up and what you can claim for can vary between industries and occupations. Talk to us about your business expenses from the beginning. This will also help you plan for any bigger work-related purchases that you may need to make.

Get a system sorted

You’ll thank yourself later for setting up a good system now. Getting your expenses recorded and your invoices collated means you’ll be able to spend more time doing the important stuff in your business. It’s not just about saving time – keeping on top of your cash means you’re more likely to succeed. Do your research and choose a system that will work for you. Consider choosing a software platform which allows you to record your time spent on projects, it’ll make sending those invoices that much easier!

Stash that cash

When you’re running your own business or working for yourself, it’s important to always keep your tax obligations top of mind. Make sure you have money set aside in a separate account or consider entering into voluntary instalments.

One way to budget and keep on top of your business tax is to pay yourself a wage. Keeping your accounts separate also prevents you from thinking of all your business income as spending cash! Remember to also put aside a little extra to cover your holidays and any quiet periods.

We can help make this process easier, so talk to us about setting up systems that take the headaches out of your finances.

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

It’s difficult to make your business stand out from the crowd, especially in the 21st century digital environment where businesses large and small are competing for the same customers.

Remaining competitive is vital for any business. If you stay ahead of your competitors and hang onto your customer base, your sales stay stable and your revenues remain predictable.

But how can you do that in today’s increasingly challenging business environment?

Key ways to remain competitive in your market

No market sits still. And the competitiveness of your company’s brand will also fluctuate and evolve over time. But this doesn’t mean that you can just sit back and let your competitive edge fade away. The more proactive you are about your position in the market, the more you can do to preserve your advantage and keep your business ahead of your competitors.

Here are some helpful ways to boost your competitive edge:

• • • Provide a personalized experience for your customers – customer experience is everything in the digital age. A happy customer will buy more, so you need your CX to deliver every time, no matter what. Try analyzing your customer data and feedback, and then using that information to tailor the customer’s experience with your company.
    • Carry out competitor intelligence activity on your main competitors – competitor intelligence is an important activity for any company. It involves gathering data about your competitors, including their strengths and weaknesses. You’ll need to identify the competition, find out what they’re doing, and analyze the data you’ve collected.
    • Offer high-quality products or services at reasonable prices – you won’t sell high volumes if you don’t have a quality product or service. And you also need to offer a price point that your customers see as good value. If you’re not sure if your prices are competitive, take a look at what your competitors are charging. This will give you an idea of what people are willing to pay for the same products or services that you offer.
    • Develop new technologies that are not yet on the market – investing in new technologies is risky but can also be profitable. To help mitigate the risks of developing a new technology, it is important to research the market and make sure that there is a genuine customer need for your product. It’s also important to ensure that your product will be affordable and has potential for growth in the future.

Talk to us about reviewing your business strategy

Keeping your business at the competitive edge of the market can be a challenge. But by analyzing your customer and competitor information, you can do your best to remain competitive and keep your dominant position in your market or industry sector.

We’ll help you identify the risks, spot the opportunities and amend your business strategy to remain competitive, stable and profitable in the future.

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

The increase in digital business systems has opened up forensic ways of understanding your customer base.

That’s a huge bonus when you’re aiming to build better connections, relationships and experiences with your audience.

Knowing what your customer wants is a fundamental piece of knowledge for any successful business to get to grips with. And when you’re running a modern, digital business there’s an overwhelming wealth of customer and sales data and analytics at your disposal – making it easier than ever to dig down into the needs and habits of your end user.

Detailed CRM records and customer notes

A CRM system becomes the heart of your customer management, business development and marketing activity, allowing you to log activity, keep notes and record progress throughout the sales pipeline.

The more information you have about your valued customers, the more you can do to meet their needs and deliver the perfect customer experience. And by maximising your use of this customer data, you can tightly focus your marketing campaigns and do more to make every customer feel understood, valued and (most importantly) satisfied.

Drilled-down sales records

Keeping tabs on your sales activity is central to any business model. In an ideal world, you want regular, repeatable sales from a loyal customer base. But sales activity can be hard to predict, especially when you’re setting ambitious sales targets for your team to hit.

Having detailed sales records and data at your fingertips has two key benefits:

• • • You know how sales have fared in the past
    • You know how sales may pan out in the future

Being able to run forecasts, based on your historic sales data gives you a stable foundation on which to build your future sales targets. It’s a solid projection, based on real business data. But this data also gives you an encyclopedic overview of what your customers have been buying.

This sales data helps you understand:

• • • Which products/services your customers want to spend their money on
    • Which specific products/services are failing to convert
    • Which points in the year will have peaks and troughs in sales
    • When it’s the right time to invest in more sales and marketing activity

This is all gold dust when it comes to planning out your strategy, assigning your sales and marketing resources and building engagement with your core audiences.

Marketing analytics and customer touch points

Marketing is a vital part of getting your brand message out into the world. Today’s digital marketing and email platforms make it easier than ever to see the results and analytics from your marketing campaign and to answer meaningful questions about the outcomes:

• • • How many customers clicked through from your call-to-action?
    • How many click-throughs were converted into sales?
    • How many views did your latest blog post get?
    • Who opened your latest email campaign?
    • Which one of your customer segments is most engaged?

With the marketing analytics that digital systems can provide, you know the answers to all these questions. That’s incredibly helpful when working out which campaigns delivered a good return-on-investment (ROI), which customer groups are most engaged and where your marketing is hitting the mark (or not, as the case may be).

Social media interactions and feedback

Social media platforms, like Twitter, Facebook, LinkedIn and TikTok, give your business a cheap and effective way of getting your brand messages out to a wider audience. Social media is a two-way communication channel. It’s a conduit for your customers and followers to message you, ask questions and give you feedback – and in that sense, it’s a vital way of understanding your customers’ needs.

As you scale and grow, an increased focus on social media will be vital. Hiring a social media manager, or working with a social media agency, helps you broaden out your social activity and really engage with your followers. Reply to queries, placate frustrated customers and share your latest news and updates. If you can be present and engaging in the social space, that’s going to help you cement your bond with these valued customers.

Online customer feedback and star ratings

The acid test of your customer experience is simple: are your customers happy? Satisfied and happy customers become amazing advocates for your brand. But, equally, disgruntled and unhappy customers can quickly undo the good work you’ve done in building a brand.

In the online age, bad news spreads incredibly quickly, and customer feedback, reviews and trust scores are a vital part of your brand’s equity. A series of terrible reviews for your cafe on a platform like TripAdviser can cause serious damage. So, it’s important that you engage with these reviews, run customer surveys and listen carefully to any customer feedback.

Ultimately, delighting your customer is your key aim as a business owner. Using your ears and listening to the feedback you get is integral to understanding what your customers want.

Hitting your growth targets, is far easier when you know the needs of your customers and can accurately target your sales, marketing and social activity.

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