Key Value Drivers of Business Value

GROW AND SELL YOUR BUSINESS

Key Value Drivers���

���Key to success ���

Selling your business How to List?

Find a broker

Find a buyer

Close

Time to sell •  The lead up to the sale of

your business is a long process.

•  You have to take a good look at the business from the buyer’s perspective.

The aim: Make and keep your business TRANSFERABLE!

It is a Process

Your Role in the Business •  Your influence on the business should not be too

great.

•  Potential buyers need to know the business can function without you.

•  Grow and empower your team.

Systems

“Everything must be made as simple as possible.“

Processes to optimise workflow:

•  Production •  Sales •  Processes •  Marketing

Information Technology

Intangible Investments

•  Trademark

•  Patent

•  Design

•  Client Database

Tangible Investments

•  Machinery

•  Building

Information Technology Computerise your business :

•  Computerise bookkeeping and databases

•  Establish effective IT Systems (Software, e-budget, e-marketing, etc.)

•  Build an interactive Website (e-commerce)

Internet & Social Media •  Use Social Media as an important link with

clients, branch offices, etc.

•  Use the internet as: •  An attractive and informative brochure •  A product catalogue •  A source of improved productivity for

your business.

Stock! Stock! Stock!

•  Stock turn: determine what the amount of shelf stock is as a percentage of annual turnover.

•  A good stock policy will increase business value

More stock = less money for goodwill !

Stocktaking is essential – play it safe,

take and count the value of your stock.

Keep stock under control – sell out dead stock at any price

Your Product and Service

Goodwill comes from profit and reputation - your

unique offering.

MAKE SURE YOUR PRODUCT IS A STAND OUT AND ENSURE THAT IT IS RELEVANT

a unique product offers far greater

value to a purchaser

The Right Client Mix Having a wider spread of clients reduces risk and increases value in a business.

Not just major clients

Timing •  Time your sale to be at the optimum for your industry.

•  A business has to adapt to different cycles:

Longest cycle and easiest to predict.

Predict the future. Retail stores go extinct.

!

Calendar Cycle Sell in the top trading period to receive the optimum price

Regulatory Cycle

Influence of the government based on regulations

Competition •  List your competitors and assess their

strengths and weaknesses.

•  Understand your competitive advantage and be prepared to explain it.

Competition Analyse them in terms of their:

•  Competitive Scope

•  Strategic Intent

•  Market Share Objective

•  Competitive Situation

•  Strategic Posture

•  Competitive Strategy

Start implementing any of these

initiatives and you’ll find that you’ll begin to

boost the value of your business immediately.

If you want to make your small business BIG!

http://www.growandsellyourbusiness.com

GROW AND SELL YOUR BUSINESS