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:
- 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.
- Reduce you meeting time and the number of meetings. Not only will you save time and money, but you can increase accountability and accomplishment.
- Be extra careful with cash flow and seek justification for each expense in terms of building your business, not just expense reduction.
- 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.
- 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.
- Evaluate all revenue streams in terms of profitability and consider transitioning out of them, including the possibility of new lines to replace them.
- 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.
- 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.
- 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.