It sounds very simple:
Design and evolve your business with your exit in mind.
Unfortunately, life isn’t that tidy.
Competing opportunities and resource challenges often mean exit is at the back of your mind rather than that the forefront, when making vital business decisions.
Beyond the ‘the bottom line,’ this means considering how to maximise brand profile, geographic reach, proprietary IP and systems, database strength and reduce reliance on key personnel to accelerate timing and increasing business valuation at exit.
Just how big is the gap between the exit you desire in terms of timing, money and family and where your business stands today?
MANAGE CASH FLOW
Could you free up some cash by reviewing debtor and creditor management or by shifting VAT from accruals to cash basis?
Where might you increase the proportion of turnover from recurring revenue?
Is a bank loan a realistic, more cost-effective option to overdraft?
Or is off balance sheet financing worth a look?
What (if any) activity should you consider sacrificing or perhaps divesting?
Is the time right for a new strategic investment from third parties?
Should your dividend policy be revisited?
We all know – Cash is King.
Get in touch to explore how you could improve your bank balance.
Your strategy should be able to be summed up as an overarching “Mission,” which defines 3 things in a one-liner:
1. A pithy description of what you’re best at/how you going to win/what you are known for,
2. A simple, quantified, non-financial milestone, and
3. A deadline to achieve the milestone, typically 3-5 years ahead.
Nailing this trio is a big win.
However, then you must go viral, so staff know how to prioritise actions day to day, to deliver customers a consistent, compelling product / service experience they keep coming back for.
Do you need to revisit your strategic clarity?
VISION AND VALUES
The bigger you get, the more vital it becomes to embed cultural vibrancy and cohesion. Even if your business is highly automated, people are still critical to success and want to have fun along the way.
Vision is the reason staff come to work. In other words, it’s an ongoing source of inspiration. For example, Disney – to make people happy.
Values drive behaviours. This is ‘the how’ of implementing your strategy. If your Values aren’t hardwired, this will typically lead to inconsistent strategy rollout and higher staff turnover.
Are you ready to amplify the cultural ‘glue’ so it becomes a critical part of your formula for success?
Every organisation needs two types of Key Performance Indicators (KPIs) on their Dashboard.
One of these is the critical, yet inevitable financial KPIs.
Unfortunately, concepts like profit, margins and return on equity etc aren’t the drivers, which get many team members out of bed.
Here you boil down the key drivers of your business into something everybody can understand, so they can readily prioritise their day to day actions.
For example: A membership organisation may monitor member numbers, retention rates, membership satisfaction and referrals (as well as profit).
Is the time right to consider a ‘dual’ Dashboard, to fast track profits, improved cultural cohesion and staff retention?
In other words, just how ready are your Growth Enablers for scale?
Growth Enablers typically include IT & digital infrastructure, data analytics, supply chain, capital requirements, marketing platform(s), talent management, exporting culture internationally, geography, protecting IP, systematisation etc.
Once your key Growth Enablers are succinctly assessed for ‘readiness’ to scale, it becomes obvious if/where work arounds are needed.
Meanwhile your Growth Enablers are primed for fast tracked growth. How’s it looking under ‘the hood’ of your business?
Whatever your business model, expanding geographic reach requires persistent focus and resourcing, which must NOT detract from the company’s core, existing business.
Growing beyond the local area requires navigating a range of alternatives to secure risk-managed, profitable scale.
These may include flexible business models, partnering, collaboration, acquisitions, strategic investors, franchising, licensing, agencies, capital raising etc.
It demands exacting strategic clarity to juggle the competing needs of sustainable profitability with national / offshore growth.
How well defined and risk managed is your Plan A for geographic expansion? Ask yourself – can you afford to fail and what’s your Plan B?
Being a Business Owner/Entrepreneur is exhilarating, yet it can be lonely.
Having someone with no axe to grind, who you can talk to about any aspect of your business will help you to keep on track to achieve your desired Exit.
Coaching clients secure advice in two ways:
1. Working alongside them weekly, fortnightly or monthly on the journey to Exit, sometimes from ‘seed’ stage, OR
2. Engaging as and when required at critical times in the business, to help navigate and pursue opportunities and challenges effectively.
Are you seeking new input to help nail your milestones and achieve the Exit you and your family dream of?
GET IN TOUCH
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