Every business owner wants a growing, profitable business with loyal, hard-working employees. You want to create a culture where everyone is thriving and able to provide their best work. However, even with these common goals in mind, many people forget one very important part of creating and running a prosperous business; their business exit strategy. So, in this episode, Tom will be sharing several areas of your business that you should focus on to maximize the value of your business and create a smooth transition for when you decide to exit your company.
Listen in as Tom explains what specifically makes a business more sell-able, why having a broad customer base is favorable, and why you should have Standard Operating Procedures (SOPs) in place. If you invest your time into improving these key areas of your business, you’ll end up reducing risk in the eyes of a potential buyer, you will position your business as a quality company worth investing in, and ultimately increase your potential selling price.
Listen to the full episode:
What You’ll Learn:
- How to position your business as a quality business worth investing in.
- The best way to reduce risk in the eyes of potential buyers.
- The two common ways business owners run their business.
- The importance of spending time putting together your exit strategy.
- What specifically makes a business more sell-able.
- What a value driver is.
- The benefit of having a diverse customer base.
- Why you should always keep clear and comprehensive standard operating procedures.
- The value in documenting everything you do. How to use video as a training option.
Ideas Worth Sharing:
- “Whether a buyer will pay a premium for your business or not, depends on their perception of risk and return.”- Tom Poltersdorf
- "By lowering your risk and increasing your potential return, value drivers improve your odds of getting a higher offer.” - Tom Poltersdorf
- “None of your customers should represent more than 5% of your revenue.”- Tom Poltersdorf
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