One thing that stands out to me – from all business owners I’ve ever met – looking to sell their company in the next 2-4 years:
Businesses that effectively manage their costs, not only boost their profits, but also significantly increase their attractiveness to potential buyer.
Here are a few of my favourite cost containment techniques that could make all the difference in getting top value for your business:
✅ Review supplier contracts. Yes, loyalty is important, but are you overpaying? When was the last time you negotiated better rates or discounts?
✅ Optimise your workforce. Save on office costs where remote or flexible working makes you more competitive and doesn’t have an adverse impact.
✅ Outsource non-core tasks. I know a lot of companies who outsource manufacturing, HR and some finance roles, but regard sales and marketing as core.
✅ Automation. Streamline repetitive tasks and reduce your labour costs.
✅ Operational efficiency. Regularly check your business processes are fit for purpose.
✅ Invest in your staff. Improve productivity, reduce errors, and minimise waste by developing a well-trained team.
✅ Leverage technology. One of my favourites when done properly. Yet tech upgrades are often seen as a cost with no ROI.
✅ Periodic purges. Never hurts to routinely check whether you still need all of those standing orders, software subscriptions or whether you have the best deals from all of your existing providers or suppliers.
✅ Inventory management. Being more efficient can make a big difference to your bottom line.
But here’s the thing – cost containment is just one piece of the puzzle when it comes to selling your business.
To maximise your exit value, you’ll need to put all the right pieces together…