Quick Wins that can add Business Value
Effective succession planning can take time but there are still some quick wins that could add value to your business without you having to spend a cent.
Renegotiate with the bank
If you support your business with bank funding now would be a good time to sit down and discuss any terms you might have had in place for a while, whether it’s the cost of running an overdraft or the interest you are paying on any longer term borrowing.
Sometimes the only thing you need to do to get a lower interest rate from your bank is ask; after all they are businesses too.
Renegotiate with suppliers
Revisit long standing supplier arrangements to negotiate better terms such as bulk discounts that recognise you are buying more as your business has grown, or better payment terms that reflect the flexibility of a long standing relationship.
A quick phone call or meeting with your key suppliers could yield some instant savings.
Tap into the team
You’re not the only one who has built up knowledge of your business over time so it’s worth regularly sitting down and brainstorming with your team for ideas on improving how you do business.
Sit down monthly or quarterly with the team to discuss ideas for improvements, and put in place a suggestion box so team members can contribute ideas at any time.
And don’t forget to thank and reward team members for any ideas you use that increase business value.
Manage your stock better
Are you buying too much stock, paying excess storage fees and risking damage or obsolescence, or buying too little and paying suppliers over-the-odds when demand spikes and you don’t want to let your customers down?
Track and review your stock turnover monthly, quarterly and annually and buy accordingly. Allow for seasonal spikes and other trends that might impact on sales. Make stock reviews a part of your monthly management process to avoid tying up cash in excess stock levels.
Even small changes add up, and everything contributes to maximising the value of your business when it comes time for you to step back.
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