Why does\nthis have an impact on the value of your business?<\/p>\n\n\n\n
Again we\ncome back to risk, the higher the risk or perceived risk then the lower the\nvalue and the lower the risk the higher the value, which is quite logical when\nyou look at it. Based on any research you will do and according to Michael\nGerber from the e-myth revisited more than 80% of businesses will go broke on\nthe first 5 years and 80% of the survivors will not survive the second five\nyears.<\/p>\n\n\n\n
Less than\n5 years old.<\/strong><\/p>\n\n\n\n you cant\nchange the age of your business but being aware of the risk factors you can prepare\nyour business to be at the top of the list of potential purchases for a buyer,\nbut start now to do your preparation and not when you are about to list it for\nsale then its a bit late. By making many other areas I have listed to prepare\nfor then you can lessen the impact of age. Start by creating a business plan\nfor the company and its future less than 10% of businesses have a business\nplan. It doesnt need to be elaborate and the easiest way to start is to buy a\nbusiness plan software and look at some examples then get started.<\/p>\n\n\n\n 5-10\nYears of age <\/strong><\/p>\n\n\n\n So you\nhave survived the first 5 years congratulations.. your business is in a\nmore stable range and if you combine the second 5 years with increased staff\nlevels then you must have some at least reasonable systems in place. So again\ncreate the business plan as advised above but add another level and also create\na marketing plan, by having these tools in place you will focus a potential\nbuyer on the short to medium and even long term vision you have for the business\nand how to get there even with a different driver at the wheel.<\/p>\n\n\n\n 10 Plus\nyears old.<\/strong><\/p>\n\n\n\n Great\nwork you have surpassed 10 years old even more stable a business this by itself\nadds value so when you go to sell the business be sure not to underestimate this\nfactor. Combine this with the above 2 suggestions of a Business plan and a\nmarketing plan then ensure that you update those on a yearly basis all business\nchange and the markets change over time. Also focus this with the amount of\nmanagement levels you have within the business. The more management levels the\nmore stable and more value this will add to the business.<\/p>\n\n\n\n In\nsummary regardless of the age there are 3 types of businesses one that is\nincreasing its sales and profit each year for the last 3 to 5 years, the second\nis a company that has sales and profit that is wavering increasing each year so\nsales and profit is up and down year on year. The 3rd type of business is\ndeclining each year for the last 3 to 5 years. Which one would you rather buy?\nand the value of the one that is increasing each year will be higher and in\nmore demand than the other 2 types. so why not start now and prepare you\nbusiness for sale in all respects regardless of if you intend to sell Tomorrow\nor in 10 years time. The worst thing that can happen by working on these topics\nis that you strengthen you business and make more profit in the interim.<\/p>\n","protected":false},"excerpt":{"rendered":"