- Posted January 13, 2014 by
This iReport is part of an assignment:
Tell us the Good Stuff!
Snapchat wouldn't sell for $3 billion - would you?
Of course, the average business owner can never achieve these crazy valuations. Instead, most lose out when it comes time to sell.
“Most business owners sell based on a traditional formula where the key factor is the profit. And in times like these profits are not that great for many businesses”, said Marc Johnstone, partner at Shirlaws Coaching.
“Instead business owners need to focus on the other leverage points in the business, which directly affect the value multiple the business is sold at. That’s how businesses within a span of just 18 months can become three times as valuable when sold,” continued Johnstone.
So, what can you, as a business owner, really do to change the value of your business?
For most businesses costs have already been slashed to the bone. And raising prices is likely a way to scare away customers, and quickly growing the customer base is not as easy as it sounds.
Instead businesses need to look at some of the key leverage areas in the business including:
1. Brand and marketing
2. Systems and processes
3. Capital and cashflow
There’s no successful exit without a successful entry
Most business owners are thinking too much about what they want. Remember the customer is always right, so find out what the potential buyer wants, even if you don’t want that buyer to show up until several years down the track. Some of this takes a while to prepare.
For the full story; go here: http://www.businessconnector.com.au/exit-strategy-like-snapchat/