If you’re looking to sell your business or you’re working with a business owner to sell theirs, you’ll want to ensure the business is as profitable as possible to make a sale appealing. Much like investing to increase the profitability of a property before you sell, it’s important that you spend the time to make your business as secure and profitable as possible before you sell. For some top tips on increasing the profitability of your business, read on below.
In improving your internal efficiencies you’ll be amazed how quickly you see your profit rise. Streamline project teams, so that work is shared and projects can be completed quicker. Knowledge sharing throughout the different departments in your business is one of the best ways you can improve efficiencies as people are able to play to their strengths, offering new ways of working to colleagues in other departments.
Work with existing clients
As everyone in business knows, it’s far more cost effective to invest in the time you spend with existing clients to generate more revenue. In the final stages of running a business, when you’re looking to sell, you won’t want to invest your time in winning business through new clients. It’s far more time consuming than working with the existing clients you already have to maximise their spend. Make the most of the relationships you’ve worked hard to establish and find solutions for your existing clients to increase their spend in your final few months running the business.
Lock down processes
One of the most important things you need to achieve when selling a business is to ensure your business looks as though it will still run efficiently once it’s sold. The more effective and robust your process and procedures are, the easier it will be for the buyer coming in to pick up where you’ve left off. This will allow you to sell not just the business at its current value, but a trajectory of likely future business based on your current success.