Buying a business

What to know about buying a businesses

There are three main reasons to buy a business: You have capital to invest, and businesses are a good way to turn your money into more money You want to be a business owner: for the challenge, the autonomy, and of course, the money Strategic reasons IE you already own a business, and want to expand Note: To clarify, when …

Build an effective team, like rowing

Building value into your business: Building an effective team

Your people determine your ceiling; no matter how good your processes get, you need people to run them efficiently — and to help you optimize them. Whatever stage of your company’s story you’re at, the same principles apply to building an effective team. The value of good people is truly felt when you can shore up your weaknesses and create …

Selling your business: Overview of the paperwork and the process

This overview is of the negotiating and selling process, assuming you’ve groomed your business, developed your exit strategy, marketed your company for sale, and have made contact with a buyer. The process ahead will follow a few key steps: Get a letter of intent from the interested buyer Due diligence on your part and the buyer’s Purchase agreement Transfer of …

Building value: Where to start implementing changes

The journey to build the market value of your business begins with making a laundry list of areas that are ripe for improvement. There are various ways to identify these areas, using data and valuation models, which we’ve covered in previous posts. Sometimes the data clearly emphasizes which areas you ought to tackle first, but its not always clear. If …

Where to start building value? Prioritizing your improvements

Upon setting up a cockpit for presenting your data, everybody in your company will have an idea of what needs to be improved. Of course, everybody in your company already has a full time role. So with limited time on your hands, how do you decide which areas are most important? Even if you do have time to address everything that …

Optimum - Cockpit Example

Visualizing Your Financial Data

Now that you have all of this important data, let’s turn it into useful reports and dashboards that tell a story about what is happening in the business. A visual story will help you assess the current market value of your company and identify the best areas to improve in order to increase the market value of your company. Together, …

Building Financial Data Collection Systems

The most important thing you can do now to fetch an appreciable market value for your company when you eventually exit the business is to begin assessing the current market value. By setting up data collection systems and doing this regularly, you can identify the best opportunities to increase the appeal your business has for investors. Having an easy-to-interpret model …

Key Performance Indicators

To really empower themselves in building value into their business, business owners need to develop systems to periodically check in on the market value of their company. With all of your other responsibilities, this can seem like a lot to take on, but it doesn’t have to be. The process of building value into your business is a gradual one, …

analyzing your market

Analyzing your market

Now is always the best time to start preparing for your exit strategy. Even if it won’t be till years down the road, that only means you have more time to refine it and make the most out of it. Ultimately, most of what improves value to prospective buyers will also benefit you as the current owner of the business, …

Building value into your business

Building value into your business

When it comes time to sell your company the first question you will likely ask is “How much is my company worth”? And that will be followed by “Can I do anything to increase its value before I put it on the market?” The answer will vary based on your industry, stage of growth, and past performance along with several …