Turning your service offerings into standardized products increases the value of your business. When these standardized products are sold on a recurring basis you can much more easily train staff to both sell the products and perform the services required. This reduces the dependency of the company on you as an owner, and allows your company to scale much more easily. Furthermore, by offering products that can be sold on a recurring basis, you’re increasing the value of your business since recurring revenue streams are predictable and repeatable.
Does Your Business Require Financing?
Before you can answer this question, you have to ask yourself:
Does your business need cash in the form of new loans or investment? Perhaps the answer is yes. But there may be cash hidden on the balance sheet in your company under different names.
Consider the following:
You have decided to sell your business several years from now as part of your retirement.
This allows you to make some changes so can maximize the price.
A purchaser buys a business that has to operate independently of the former owner. If all the procedures, control mechanisms and valuable information is only in the mind of the owner, there is nothing to sell. The business may be a very good business, but if it is not a system, it cannot be sold, or sold for a good price. So, if information and systems are not in place, now is the time to work on that.
Cash flow is the life blood of every business. All businesses should focus on it, even the most profitable. But if you run a seasonal business, are in the start-up phase, are growing rapidly, or are in financial difficulty, you’ll need to pay particular attention to your cash flow. The following are key actions you can take to improve it.