Building Value & Putting Profit First: The Why
As business brokers, we speak to business owners of all shapes and sizes every day. Many of our conversations are with owners who have built great enterprises, but what they don’t always have is a company that is built for sale.
And while getting to a place of being sellable may seem harrowing, it starts with a mere shift in perception. Many entrepreneurs perceive their businesses to be something they’ve birthed and grown over time. But the difference between a great company and a sellable company means that an owner must take a step back and look at their company as an asset- not a business child. An asset is something you want to see grow in value over time.
Understanding the right time to sell is more important than ever during today’s ever-changing financial landscape. While you may feel it’s time to sell, the truth may be that your company isn’t quite ready to go to the market. It may actually be the right time to pause and consider building value for your business.
Why is Value Building the Key to Freedom?
Value Building is a win-win situation for you and your business. It’s a step-by-step process that will help you, the owner, get out of the weeds of your own company while you focus on increasing profit, reducing owner dependency, building a diverse customer base, and creating differentiators over your competition until your company is fit for sale at maximum price.
A valuable company is one that thrives without you. That means that your company will work towards the goal of operating at peak performance while you shift towards a place of freedom: You can choose to sell or to hold onto it, without the stress of its day-to-day operations. And that space between yourself and your company will enable you to make balanced, clear decisions about both of your futures.
As you go through the steps on your value-building journey, you will learn when to sell your company and exactly for what price.
So, how exactly do you begin the process to maximize value? Through a series of steps that have been proven over time to help thousands of companies build value. And simply put, by prioritizing profit.
Why Put Profit First?
While it may seem counterintuitive, prioritizing profit is a compliment to value-building when it comes to having ultimate freedom as a business owner. And what is Profit First? It’s a methodology that’s a non-traditional spin on the concept of cash flow. The traditional method of accounting is:
Sales — Expenses = Profit.
But with Profit First, the accounting looks like this:
Sales — Profit = Expenses.
And with that switch, your spending habits will change. Much like Value Building, Profit First is a paradigm shift in your mindset as a business owner. Powered instead by your topline, you will be driven to think about your spending in a different, more frugal way. And with your Value Builder hat already in place, you will quickly see your company grow into a valuable asset powered by profitability rather than you.
Here’s how we can help you along your journey:
We have different avenues that are led by the Business Growth Team.
Raincatcher’s Deep Dive: This program will provide you with a detailed, objective review of everything from your marketing to your financials, and we will create a personalized plan to help coach you towards the increased profitability and efficiency that will enable you to sell your company at maximum value when you are ready to take that step.
One-on-One Advisory: Get invaluable one-on-one time with our team or a preferred affiliate as they walk you through a two-pronged approach to building value for your business. Gathering from the wisdom of both the Profit First and Value Builder models, we take a focused, personalized approach to building a growth and marketing strategy for you and your business.
Are you ready to shift your mindset and watch your company soar? We’re here to help guide you along the way.
Click here to chat with our team!