1. Make Changes which will increase the value of your company:
Create the culture of growth that buyers seek.
Create written procedures for the most common processes.
Know and track your Key Performance Indicators (KPI’s).
Track financial performance; share appropriately with subordinates.
If needed, retain management consulting assistance.
2. Reduce Dependencies to enhance the selling price
Customer concentrations
Dependency on one or two key employees
Supplier dependencies
Product dependencies
3. Train and motivate subordinates to make decisions (Buyers want to inherit a
strong team).
Delegate and encourage employees to make decisions
Allow employees to do the problem solving; owner should focus on innovation
Create a culture of collaboration and listening.
Take a month-long vacation with no ill effects to the business.
4. Understand and share financials KPI’s (Key Process Indicators).
Train your managers to understand business financials.
Train managers to generate and track KPI’s
Understand the difference between cash flow and profit.
Incentivize managers based on profitability and growth.
5. Understand the need for and implement a Marketing and Sales Plan.
(Buyers want to see a marketing/sales "machine" that can generate growth.)
Focus on growth. (Buyers avoid companies that are stagnant or declining).
Develop an annual Marketing and Sales Plan
Implement and follow the plan.
As President, focus on your key customers: you must talk to them regularly.
6. Know and exploit your competitive advantage.
Ensure that you and your employees can succinctly describe how you are different from your competition. (Buyers want to know why your business is special and how that can be leveraged.)