- Jon Beck
- Bill Cavanagh
Clearly, given the valuation drivers, there is significant work that can be done to prepare your company for this ultimate event. Update your business plan and overall business strategy. Make sure your management team is well rounded in all disciplines and make sure they’re given the authority and responsibilities to make decisions after being given direction from the Leader (you!). Lastly, think about what makes your company unique to the needs of your customers – what satisfies their need to feel their investment in you and your employees is a valuable one.
One way it to document the business processes that you built over the years to find, close and service your customers. Being able to show that your increasing revenue is the result of a clearly defined sales process and not just you or your star sales person closing the deal may increase your value dramatically. On the back end of the sale, show the investor how you continually listen to your customers and respond to their needs throughout their relationship with your company is another important value driver.
You and your employees are experts at your business. No one knows your products or customers better than you. Your customers continue to buy from you because they’ve come to rely on this expertise. Our management consultants never lose site of this fact and they don’t pretend to know the best way to run your business.
That’s the $64 dollar question and we’ve been asked it by business owners for over 25 years. Frankly if we could answer it, we’d already be sitting on a beach somewhere enjoying the sun and relaxing.
Knowing your customers and what makes them buy from you is important. It’s also important for you to know and understand your competition. Remember, your customers are sometimes only one click away from being someone else’s customers so know what might make them change their buying habits.