The Way to Leave Your Business with a Full Pocket is by Scaling It Up
When the time comes to exit your business life, there are fundamentally two ways to leave the business you've built:
- By liquidating your business
- Or by selling/transferring it for a substantial profit
Let's clarify our aim at BCC: it's the second option.
Our goal is to ensure you leave your business with your pockets full and that the business you've built and nurtured over the years provides you with the maximum possible financial return
We aim to ensure you leave no money on the table.
To leave your business with your pockets full, the first step is to grow/scale your business's free cash flow.
The definition of scaling in business is this: increasing your business's revenue while simultaneously reducing its costs and expenses.
The opposite leads to bankruptcy and the need to liquidate, which stems from a business losing money or failing to generate the desired cash flow.
However, if you increase your revenue while simultaneously reducing your costs, you scale your business's free cash flow. And any business that generates cash efficiently like this will always attract good buyers willing to pay a premium.
So, how can you scale your SME's free cash flow to make it a desirable business with a high sales price?
How can you increase your SME's revenue while simultaneously reducing its costs?
Here are a few proven suggestions:
- Always aim to keep your prices at their maximum. Low prices lead to bankruptcy, while high prices lead to scaling. Always employ a high-value, high-price product strategy.
- Closely monitor your production costs and constantly seek efficiency. Always optimize your costs. Supplier management is the key pillar of cost optimization. Ensure your supplier contracts provide you with cost advantages in the short, medium, and long term-without compromising quality.
- Cut any expenses that won't make your sales profitable within a year. This might include unprofitable products, customers, suppliers, or even employees who don't contribute to your sales growth.
- Manage your tax strategy wisely. Utilize the tax advantages available to your business based on the recommendations of your financial advisor.
- Put the right people in the right positions. This will not only bring you significant cost and expense advantages in the short, medium, and long term but also boost your business's sales. Build a winning team and ensure they work effectively to scale your free cash flow.
- Automate your business processes as much as possible. Automation is an indispensable pillar of efficiency and cost/expense optimization.
Scaling a business is a complex project that requires careful execution.
The sooner you start this project, the greater your chances of leaving your business with your pockets full.
We're here to help you exit your business successfully and profitably.
Scale and Exit Your SME