What value do business systems have when your build a successful business? How do these systems help you better manage your business for success? How you can use business systems to make your business more attractive to potential buyers starting today?
Last week, we talked about the first two key value drivers to get the most out of your business; your people and your business brand.
The third key value driver is the business’s systems. Has your business taken advantage of technology to create stronger business development and financial systems? When others in your industry think of your organization, how do your systems match up with others in your markets? Many businesses are acquired because they bring core capabilities their acquiring organizations don’t have. You can create significant value by showing the acquiring organization how your business is designed to help the new leadership team succeed. The other thing I stress to clients is that they know more about how their business runs than anyone else. Be prepared to share this critical information once you are certain there is a genuine interest in the business. You should be careful not to share this information to soon. For many successful businesses, this is the secret sauce to their business success.
If you’re preparing your business for sale, make sure your financial systems are transparent and up to date. You want to make sure that you can share the key performance metrics when talking with people who are interested in your business. Your ability to share key financial information is critical in helping you sell your business for what you want.
A strong business development system can not only help ensure strong sales results today, but also provides the potential buyer an asset as they continue to invest and grow your business. Many of my clients are looking for organizations that have a proven lead generation and conversion system when they buy a new organization. Investing in these today not only gives you an increase in revenue and profits short term but takes your business to the top of many investors’ wish lists.
We’ve talked about other business systems, what about a management development system that helps you attract, develop, and retain your best team members? If you’re in a people business and, all of us are, it is critical that you spend time developing a leadership development system. Companies with strong talent pipelines are more attractive to potential employees but also can attract the attention on potential partners and investors in your business. As more baby boomers continue leaving the market, it is essential for your organization to capture critical information from people as they leave.
Now that we’ve talked about several of our key value drivers, you have a better idea of what buyers are looking for in a buyers’ market. Next week, we start discussing how you can begin to make the needed changes to your business to help you get what you want when you sell your business.
At High Growth Business Report, we share an interesting blog that focuses on business challenges after acquisition called “After an Acquisition: Five Steps for Successful Recruiting “ by Pat Romboletti, Managing Partner of the Sandhurst Group.