I hosted an event last week, How To Maximise The Value Of Your Business. The event was designed to help the SME business owner level the playing field, as they approach their exit. I was supported by 4 experts who each shared their knowledge on different subjects related to maximising the value of your business:
Ian Parsons gave advice on how to keep as much of your hard-earned cash as possible;
Ian Kirk spoke about marketing and selling your services or products for profitable growth;
Paul Naisbitt gave insights into how to use your hard earned cash for you and your family’s financial future;
Paul Dodgshon shared his expertise on getting the most cash if you were to sell your business.
As you can see we covered a range of business topics. And we could have had more experts on the panel.
To Sell Or Not To Sell?
You may not be ready to sell your business right now. It might not even be something you’ve considered, but having a sellable business is still important because:
- You never know what personal and business life may throw at you and could change your plans;
- You deserve some of that value NOW!
- Value today will certainly mean more money, but will definitely give you time to enjoy life.
When selling their businesses, too many SME business owners lose out to larger, more powerful buyers. They don’t get the full reward for the hard work they have put into the business.
It’s just as important though to have a business that can thrive without the business owner. Whether you want to sell or not.
8 drivers of value
At the event we learnt about the 8 key drivers of value and that to get maximum value, you need to focus on all of those drivers (see image above).
We also heard about two business owners who had really different outcomes when they sold their business:
- Rick built his telecoms support business to £20m annual sales. He over-relied on one major supplier so he had to work 3 years as an earn out to only get 3.2 times EBITDA! He hadn’t worked on improving his Switzerland Structure driver;
- Whereas, Jill built her virtual assistant business to £8m annual sales and concentrated on all 8 drivers, especially her Monopoly Control driver. She developed unique software to support her VA team. She sold for £29m!
We also learnt about the power of the Net Promoter Score and practiced what was preached by getting an NPS of 60 for the event!
To find out more about the 8 drivers of business value in an easy digestible form. Sign up here for your free copy of the best-seller book, Built to Sell – Creating a business that can thrive without you.
The event was topped off by craft beer tasting organised by David from Bier Huis which was a great finish to a great evening!
Sign up here for your free copy of the best-seller book, Built to Sell – Creating a business that can thrive without you.