Enhancing Your Company’s Value Today: 9 Actions

Rather than waiting until you decide to sell your business, it is worth considering options to improve your company’s value today.  The reasons are simple:  strategic initiatives take some time to bear mature fruit and the larger the improvement, the more value potential a buyer will see in your company.

Here are some simple steps you can consider:

  1. Use affordable technology to increase your productivity and reduce expenses.  Skype calls are very inexpensive, they cut travel time and cost, and they still offer more personal contact.
  2. Reduce you meeting time and the number of meetings.  Not only will you save time and money, but you can increase accountability and accomplishment.
  3. Be extra careful with cash flow and seek justification for each expense in terms of building your business, not just expense reduction.
  4. When you use consultants be specific in identifying what the economic benefit is or will be for your organization.  As a related issue, evaluate the outsourcing/insourcing potential of all operating expenses, especially those related to personnel.
  5. Consider enhancing the financial literacy of your employees and potential incentives that will increase their sense of ownership in your organization even if they have no equity.  Also, have a modest dashboard of financial performance indicators that you evaluate on a consistent regular basis.
  6. Evaluate all revenue streams in terms of profitability and consider transitioning out of them, including the possibility of new lines to replace them.
  7. If you have to access credit, carefully evaluate the cost, even if it is a very short-term line of credit.  While access to capital can be challenging these days, the cost of capital can vary considerably among available sources.
  8. Keep working with existing customers to expand your offerings. It’s almost always less expensive to build your business with old/current customers than new ones.
  9. Make sure you HR processes are as simple and straightforward as possible, and rely on clarity of performance expectations and direct human contact to build internal relationships.  This is a positive, relationship- building approach vs. the defensive position that companies sometimes take with their employees.

There are many market segment-specific actions you can take to enhance your value, but these above are geared to all organizations, with the focus on sustaining your improvement over time.