Is It Time to Sell My Business?
Do you want to sell your Restoration Business? I have been told that most sellers lose 30% ‐ 40% of market value simply because they do not have a good, realistic growth plan in place when they put their business on the market. That could result in a huge loss of money toward retirement. Before putting your business on the market, Sellers need to take several vital steps to get ready.
Many Industry leaders suggest that those beginning to think about selling their business take two to three years to get ready for market. Sellers need to get ahead of the process and be ready to sell when the time is right. Remember that the time is right when 1) You are ready to sell and 2) After you have prepared your business for sale.
Those who either burn out or are forced out for some reason, such as health, lose a lot in potential sales value because they are not really ready to maximize their sale price. You are strongest when your three year history shows consistent growth by even a few percentage points of reportable increased annual profits.
Buyers want a company they can grow. You can help a buyer see you are positioned for continued growth by having in place a realistic and workable Business Development Plan for increasing gross revenue sales.
This Business Development Plan projects future revenue based upon past experience, environmental factors, and growth opportunities. Both actions and outcomes are projected including projected revenue and profit growth based on expected areas of expansion. This is the business owner’s roadmap that directs the company’s action steps to sustain what is and grow what is expected.
I maintained a Business Development Plan over nearly a decade of work in my company, and achieved an average annual growth rate of 46%. Some years posted a 20% growth while others increased by 60%, and in the early years we achieved several years of 100% growth. Across the span of time my company achieved an average yearly growth of 46%. That was extraordinary growth!
The key was that I had a plan. It was rooted in reality and had clearly established goals based upon our company skills, competencies, and opportunities. The plan contained my strategy to seek selection by additional Third Party Administrators that I was building relationships with. It contained plans to add additional services, and even included projected income for each new source of revenue. Some aspects of the plan worked and others didn’t, but I always had a plan and was working it.
One year when my company was at $2,600,000 of gross revenue I was added to a single new carrier program that transformed my company as it propelled us to $4,500,000 in a single year. Another year I became a State Licensed General Abatement Contractor, and after 18 months I eliminated that line of service. Some growth steps work and others don’t, but in each case I was smarter and better for the effort and experience
Every new opportunity for growth may be transformational and require additional staff, equipment, or a new layer of management. Having a plan and working it will keep you in front of your growth rather than struggling with quality and capability running behind it.
If you don’t have a clearly established Business Development Plan you really need one. It is not as hard as you think to develop, and forces you to think creatively and realistically about what you can do to grow you company. There are steps you can take today to increase your net profit and others that will lead to new sources of revenue.
What will you do? Let the forces around you grow or shrink your business, or take control of your business and grow it? I have started up six businesses over my varied careers and when asked how I did it I have always answered in the same way. The key to growth, in any industry, is to be smart enough to recognize an opportunity when it presents itself, and courageous enough to reach out and seize it.
You have opportunities, do you seen them? I can help you reach out and seize them, and together we can Grow Your Restoration Business.
No matter what your needs, we promise to deliver objective, informed advice, and actionable plans for increasing your immediate growth, and sustaining long term revenue growth.
Share this blog with others who may need to hear this message of hope and encouragement and visit our website for additional resources or to download my FREE eBook How to Grow Your Restoration Business at www.growmyrestorationbusiness.com
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