ExitAdvisor Blog

10 Resolutions That Will Boost the Value of Your Business

Finally, 2020 is in the books.

Good riddance.

If your goal is to build a more valuable business in 2021, here are some New Year’s resolutions to consider:

  1. Stop chasing revenue. A bigger company is not necessarily a more valuable one if the extra sales come from products and services that are too reliant on you to deliver them.
  2. Start surveying your customers using the Net Promoter Score methodology. It’s a fast and easy way for your customers to give you feedback, and it’s predictive of y…

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The Most Critical Factor in Achieving Your Goals May Surprise You

As we roll through the fourth quarter of the year, you may be starting to consider your business goals for next year.

Given how 2020 has gone, maybe your primary ambition is to survive in 2021. Perhaps you’re going to create a recurring revenue stream or finally hire that general manager. Or maybe you’ve decided to start preparing for an exit.

Whatever your goals are, the most important thing you can do now is write down your plan to achieve them.

A Revealing Study

This point was driven ho…

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We know what to do, we just don’t do what we know!

We all hear a lot about what we SHOULD BE DOING from consultants, advisors, business coaches -- even our spouses. But for whatever reason, we don't always do what is best for us.

Business owners' careful planning for leaving their business is crucial to getting top dollar or smoothly passing it on to a relative. The Exit Planning process can take years and it is wise to seek professional advice in identifying the important issues and taking the right steps.

Contact us to talk confidentially …

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5 Reasons Why Your Business Is Too Dependent On You

 

If you were to draw a picture that visually represents your role in your business, what would it look like? Are you at the top of an organizational chart, or stuck in the middle of your business like a hub in a bicycle wheel? The Hub & Spoke model is a drive that shows how dependent your business is on you for survival. The Hub & Spoke model can only as strong as the hub. The moment the hub is overwhelmed, the entire system fails. Acquirers generally avoid these types of managed businesses …

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3 Things to Consider When You Hit “The Freedom Point”

 

When was the last time you calculated the percentage of your net worth tied to your company’s value?

When you started your business, its value was probably negligible. Unless you purchased or inherited your company, it wasn’t worth much when you opened your doors, but over time, the proportion of your assets tied to your business may have crept up.

Let’s imagine a hypothetical business owner named Tim, who starts his company at age 30. He has a little bit of equity in his first home and a…

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The Anatomy of a Successful Exit

 

Stephanie Breedlove started Breedlove & Associates in 1992 as a way to pay her nanny. The big payroll processors weren’t interested in dealing with one person’s wages and doing it themselves was complicated and time-consuming, too much for the then overwhelmed Breedloves.

Breedlove saw a business opportunity and started a payroll company for parents who needed to pay their nannies. By 2012, Breedlove & Associates had grown to $9MM in revenue and then she received a $54MM acquisition offer.…

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One Tweak That Can Add Millions To The Value Of Your Business

If you’re trying to figure out what your business might be worth, it’s helpful to consider what acquirers are paying for companies like yours these days. A little internet research will probably reveal that a business like yours trades for a multiple of your pre-tax profit, which is Sellers Discretionary Earnings (SDE) for a small business and Earnings Before Interest Taxes, Depreciation and Amortization (EBITDA) for a slightly larger business.



Obsessing Over Your Multiple



This multiple can trans…

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Starting vs Growing a Business

Most company founders are good at the first stages of entrepreneurship. But in the

phases that follow, they may only be average. Just because you have a knack for

starting companies, doesn’t necessarily mean that those skills translate well into

growing one.



There are celebrated cases of founders who have successfully started and grown a

business – Elon Musk and Bill Gates come to mind. There are, however, many more

examples of entrepreneurs who perform well initially and then hold back their

com…

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Why Companies are Adopting Subscription Billing Models

Why Companies are Adopting Subscription Billing Models

Volvo recently announced they will make their cars available on a subscription model where consumers will pay one fixed fee per month for access to a car which includes insurance and maintenance.



Everything from tooth brushes to flowers are now available with subscription billing.

Could you offer some sort of recurring plan to your customers? Here are six reasons to consider offering your customers a subscription:



1. Predictability: When y…

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Which Is Better, a Financial Buyer or a Strategic Buyer?

If you decide to sell your business to an outside acquirer, you’re going to have to decide between a financial and a strategic buyer—understanding the different motivations of these two buyers can be the key to getting a good price for your business.

A financial buyer is acquiring your future profit stream, so they will evaluate your business based on how much profit it is likely to make and how reliable that profit stream is likely to be. The more profit you can convince them your company wil…

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