If you’re thinking about selling a small business, you’ll likely get more money if you can create a proven track record of profits. When your goal is to retire off the proceeds, you want these profits to be as high as possible. Your best bet is to start planning now by looking at ways to improve your long-term finances so that you get what your business is truly worth. Even if you don’t plan to sell for many years, the sooner you start, the better. Branding Creatively presents some helpful tips below.
Plan early.
According to VR Business Brokers, it takes approximately nine months from the day you list your business for it to sell. But, it can take many months or years of preparation to even get to this point. It doesn’t matter if you don’t intend to turn your business over to someone else for five or 10 years, everything you do today will make your venture more profitable for tomorrow.
It’s also beneficial to start early when it comes to any rebranding efforts you may be considering. Rebranding your image will likely generate some new interest in your business, so start with creating an eye-catching, standout logo that will act as your message at first glance. Here at Branding Creatively, we specialize in creating customized logos that look and feel specific to your image. If you don’t have the budget to have a graphic designer complete this task; check into using a logo creator online that can generate a customized look and feel specific to your image.
Learn to budget.
We aren’t all money masters. But, when it comes to your business, you can’t afford not to know where every nickel, dollar, and dime goes. Spend some time getting familiar with common financial terms, such as AR, AP, and ledgers, and learn how to read your accounting forms, such as your balance sheet, bank reconciliation, and P&L. You can download budget templates to get started or, if your company uses accounting software, look for an internal tutorial.
Refine your skills.
Financial knowledge isn’t the only area that you can work on to improve your business’s bottom line. If you don’t plan to sell for many years, or if you plan to launch a new business afterward, consider going back to school to earn an MBA. These days, you can complete your degree online, and that can help you learn all about research and statistics, strategic planning, marketing, and even corporate finance while you continue to run your business and take care of your family.
Consolidate debt.
Debt consolidation is the process of combining multiple debts into one loan so that you only have a single payment, ideally with a lower interest rate, to contend with each month. Talk to your bank about taking out one lump sum loan and then paying off things like equipment financing and past-due vendor balances. This can reduce the overall amount of money you spend while simplifying your bookkeeping process.
Increase your revenue.
Many small businesses start out doing one thing and then grow to provide complementary products and services. If you have yet to get to that point, there’s never a better time to start. A good place to begin is by looking at your best-selling products and then bundle them. SKUBana explains that this involves packaging items together for a slightly lower price. Keep in mind here, however, that you need to make bundles an option, not a requirement, otherwise you risk losing sales. You can also look for ways to cut costs on your current products and services, such as asking your vendors for lower prices on bulk orders for raw materials.
Go virtual.
If you’ve maintained a brick-and-mortar location simply for the prestige of the address, it’s time to rethink the strategy. Your overhead can run you thousands of dollars per month, and that is money that might be best spent on marketing, outsourced services, your employees, or your customers. Having a virtual office also means that you don’t have a commute, you can work from anywhere, and you have access to a global talent pool, so you can shop for knowledgeable employees anywhere in the world.
Ultimately, everything you do today enhances your business. When your goal is to turn a major profit in the future, you have to start working on your bottom line today. Boosting your profits takes work, but it’s well worth it in the end.
Branding Creatively provides world-class solutions and top-notch development by knowing your business, understanding exactly what you need and why, and then building solutions! Let’s team up today!
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