If you’re like the majority of business owners, you think an exit strategy is what you need before you sell your business.
It’s not.
It’s about creating the most valuable and saleable business you can – whether or not you want to sell it,
And that should be something you do at the beginning of your journey – not the end.
I have a list of 25 Valuation “Drivers” – you can download from my website (or just DM me and ask) – but I thought I’d note a few of them down here to start you off…
⨝ Embrace digital transformation – specifically, leverage cutting-edge technologies and digital solutions to enhance your products, services, and operations. If you’re not looking at AI-based automations in your business, you’re risking more than just your valuation.
⨝ Create a strong management team – your business should thrive without you… and not fall apart, once an acquirer watches you walk out of the door.
⨝ Diversify your revenue streams – I see a lot of companies double their revenue in one year, simply from winning more contracts from their number one customer. But relying so heavily on one or two of the customers is a massive risk and will hit your valuation.
⨝ Build out your intellectual property – which doesn’t have to mean you own a bunch of patents. Map out all IP, whether that’s unique offerings, processes and innovations to strengthen your competitive advantage. This in turn will postively impact the value of your company.
⨝ Invest in customer retention – business owners understand that it’s more profitable to retain a cutsomer than acquire a new one. Figure out all the ways to improve your retention metrics… and then execute.
Remember, maximising your valuation growth isn’t just about preparing for an exit. It’s about building a resilient, scalable and valuable business – which attracts the right partners and optimises your net wealth.
#nextlevelgrowth #exitlaunchpad #SME #M&A