Twenty Tips to Improve the Value of Your Businss

Last night, the First Tuesday Networking Group heard a presentation by Alex Kinder of Horovitz, Rudoy & Roteman and our own Bob Nelson on how to improve your business value. It was a cold snowy night, but the hardy group picked up several valuable tips. Most important was that there is always an opportunity for your business to be sold, you should always be prepared and have a plan.

Sprinkled into their top 20 list, Alex and Bob shared several real-life cautionary tales of clients who, unfortunately did not anticipate selling their business, did not have a plan, and saw their business being purchased for much less than valued.

Twenty Tips to Improve Your Value of Your Business1. Clean up the Balance Sheet
2. Streamline operating ratios
3. Evaluate leased assets and convert to owned assets
4. Evaluate on-going service and maintenance contracts
5. Conduct fixed vs. variable expense analysis
6. Perform a product line profitability analysis
7. Modify all leases, mortgages, agreements and contracts to ensure they are transferable
8. Engage your CPA to prepare audited financial statements
9. Evaluate inventory for accuracy and relevancy
10. Settle all outstanding lawsuits, tax liens, employee disputes and union grievances
11. Recast financial statements to reflect “normalized, non family” impact
12. Update the Strategic Plan
13. Find and implement the Best Practices for your industry
14. Ensure that you are in compliance with federal, state, local, environmental, labor rules and regulations
15. Automate your processes, invest in technology
16. Resolve partner – shareholder disputes
17. Engage a knowledgeable, experienced Board
18. Separate real estate from the business
19. Ensure that all product/service liability policies are in place
20. Ensure that all copyrights, trademarks, service marks, trade names and patents are fully documented

Our First Tuesday Networking Group will take a break in the month of January to let everyone get settled in after the New Year’s holiday. We’ll see you in February for The Business Value of Going Green.