Take time to assess your company’s weaknesses. This is one of the single best investments you can make. No one should have a better understanding of your company than yourself. To fully understand your company, you need to invest the time to understand your company’s strengths and weaknesses.
Your company has been an investment from the beginning. It is an investment in your mental energy, your time and your financial resources. The time you expend to locate, understand and then fix your businesses’ weaknesses is time well spent. Remedying your businesses’ weakness will not only be beneficial now, but will also help get your business ready to sell. Here are some of the key areas of weakness that can cause some buyers to look elsewhere.
An Industry In Decline
A major red flag for buyers is a declining market. You must be perceptive enough to understand market situations and respond accordingly. If you spot a disturbing trend and realize that a major source of your revenue will decline or is already declining, then you need to branch out in new directions. You could find new customers and/or find new ways to get your existing customers to buy more. You can offer new goods and/or services. Taking these steps shows that your business is a pulsating and dynamic one.
You Face An Aging Workforce
It has been well publicized that young people are not entering the trades. This will leave many trades with a substantial shortage of skilled workers. Technology will replace some, but not all, of these workers. If your business relies on an aging workforce, then it is essential that you find a way to address this issue long before you put your business up for sale.
You Rely Primarily On A Single Product
Relying on a single product is never a good thing. Diversification increases the chances of stability. It can even help you find new customers. Additional products allow you to weather unexpected storms such as a supply chain disruption. Diversification can also provide access to new customers and therefore new revenue.
The Factor Of Customer Concentration
Customer concentration is a concern to many buyers. If your business has only one or two customers, then it is highly vulnerable. Almost every prospective buyer will realize this fact. It is well worth the time and money to find new customers.
EBIT Associates can help you evaluate your company and address its weaknesses. Remedy your businesses’ weakness before you put it up for sale. You will be rewarded.