Your business worth is not all about historic profitability, but its ‘attractiveness’ to a potential buyer – the future of your business. You need to take time to understand your potential buyer, their requirements and then set to work to shape and improve your business performance in ways that will enhance its attractiveness. Below is a health checklist that will help you to focus on the important issues.
Basic Business Health Checklist:
- Maximise trading profits and if possible show a rising trend over 3 years
- Improve recurring revenue – purchasers regard contracted business as more secure
- Reduce undue reliance on a small range of customers, suppliers and employees
- Establish clear processes and management responsibilities – demonstrate that the business can function without you
- Demonstrate that decisions are based on sound information and management accounts
- If necessary, initiate an annual business planning process. If it exists, make it a core part of on-going management
- Ensure that there is clear ownership of any critical intellectual property
- Sell any non-relevant assets, such as property
- Ensure any industry/supplier accreditations are in order and up to date
- Ensure HR practices are fully compliant with current regulations
- Make sure you are compliant legally with contracts and company law
This list may seem a little daunting but done in a methodical way and over time, it will be manageable. The important thing is to plan ahead and start now. You may feel you don’t have the time or possibly the experience to make this happen, but you are not alone and this is where we can help. CMC Partners have real experience of working with business owners to improve businesses value.
We would also help you to:
- Optimise profitability
- Create buyer awareness
- Clean up your Balance Sheet
- Secure trading relationships with customers, suppliers and third parties
- Advice on settling disputes to avoid discounts
- Improve your market position
- Clearly define your USPs
- Brand and marketing advice
- Review management information to ensure up to date and accurate
- Check terms & conditions are up to date
Improve your businesses worth
Let us help you increase the value of your business. We can offer a one to one confidential meeting with no charge. Your local business partner will talk with you to understand your objectives, discuss the options and propose the next steps. This meeting gives you the opportunity to see if you like what we say and how the partnership could work.
Call Pauline today on 01844 319286 to arrange for a free appointment with your local CMC Partner.