Do you Know???
So, the other week I went to a fabulous presentation put on by some Exit Strategy folks down in Mesa. They were discussing how to increase the value of your business upon sale. Below are some of the tips and tricks that they were talking about, and a lot of them are items that you would want to begin implementing now - many years before the sale - so that the true value can be obtained!
- Run Your Business Like a Business:
- Do not use the business bank account as your personal bank account!
- Taxes should not be the main motivator (hmmmm??? well, I guess you are right there!) i.e. don't always lower your taxes or your bottom line looks horrible to a buyer!
- You WANT to have Profits, a strong bottom line, and positive cash flow!
- Present your Business Like a Business
- It is important the visual appeal of your location and image
- your Books should be accurate and well maintained
- Your records should be well documented (Sales, customer lists, contracts, etc.)
- You want to have characteristics that will LOWER the perceived risk for your potential buyer
- Have Stable, Motivated Management
- Have operating systems that help with cash flow
- have a solid and diversified customer base
- have a realistic growth strategy
- have effective financial controls
- use Customer Relationship Management programs
- have office documentation (an owner's manual to your office)
All of these together will increase the value of your business to a potential buyer!
So, If you have any questions on other ways to make your business more valuable PLEASE speak with your CPA (our Tax Goddess can be found here if you have any questions)!
Looking our for your best interests,
Your Tax Goddess~
Shauna~
