key value drivers of business value
TRANSCRIPT
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GROW AND SELL YOUR BUSINESS
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Key Value Drivers���
���Key to success ���
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Selling your business How to List?
Find a broker
Find a buyer
Close
Time to sell • The lead up to the sale of
your business is a long process.
• You have to take a good look at the business from the buyer’s perspective.
The aim: Make and keep your business TRANSFERABLE!
It is a Process
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Your Role in the Business • Your influence on the business should not be too
great.
• Potential buyers need to know the business can function without you.
• Grow and empower your team.
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Systems
“Everything must be made as simple as possible.“
Processes to optimise workflow:
• Production • Sales • Processes • Marketing
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Information Technology
Intangible Investments
• Trademark
• Patent
• Design
• Client Database
Tangible Investments
• Machinery
• Building
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Information Technology Computerise your business :
• Computerise bookkeeping and databases
• Establish effective IT Systems (Software, e-budget, e-marketing, etc.)
• Build an interactive Website (e-commerce)
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Internet & Social Media • Use Social Media as an important link with
clients, branch offices, etc.
• Use the internet as: • An attractive and informative brochure • A product catalogue • A source of improved productivity for
your business.
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Stock! Stock! Stock!
• Stock turn: determine what the amount of shelf stock is as a percentage of annual turnover.
• A good stock policy will increase business value
More stock = less money for goodwill !
Stocktaking is essential – play it safe,
take and count the value of your stock.
Keep stock under control – sell out dead stock at any price
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Your Product and Service
Goodwill comes from profit and reputation - your
unique offering.
MAKE SURE YOUR PRODUCT IS A STAND OUT AND ENSURE THAT IT IS RELEVANT
a unique product offers far greater
value to a purchaser
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The Right Client Mix Having a wider spread of clients reduces risk and increases value in a business.
Not just major clients
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Timing • Time your sale to be at the optimum for your industry.
• A business has to adapt to different cycles:
Longest cycle and easiest to predict.
Predict the future. Retail stores go extinct.
!
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Calendar Cycle Sell in the top trading period to receive the optimum price
Regulatory Cycle
Influence of the government based on regulations
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Competition • List your competitors and assess their
strengths and weaknesses.
• Understand your competitive advantage and be prepared to explain it.
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Competition Analyse them in terms of their:
• Competitive Scope
• Strategic Intent
• Market Share Objective
• Competitive Situation
• Strategic Posture
• Competitive Strategy
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Start implementing any of these
initiatives and you’ll find that you’ll begin to
boost the value of your business immediately.
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If you want to make your small business BIG!
http://www.growandsellyourbusiness.com
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GROW AND SELL YOUR BUSINESS