Profit First Nation Ep. 132 - Boost Your Business's Value and Maximize Profit: 4 Strategies to Amplify Profitability
Danielle presents a significant subject today, which holds importance regardless of the duration of your business. How can you increase the value of your business, ensuring a premium price/offer upon its sale? Business owners typically exit their business for one of three reasons. Begin strategizing for your exit today so your motivations align with your intended plans. In this episode, Danielle will outline four strategies that will amplify your business's profitability.
IN THIS EPISODE:
- [00:00] Danielle will talk about exiting your business, and the first question to answer regarding leaving your business
- [06:23] How do you value your business
- [09:35] The three motivators to selling a business; personal motivation; personal crisis, or the owner believes the business has peaked
- [14:32] Make a plan now for personal motivation and determine what you want to sell your business for
- [19:20] Determine what you will do with your time; if you will stay involved in the business; how you will reward your employees, and the impact of shareholders on the value of the business
- [26:10] A review of the four areas that can lead to a 30% in the value of the business
KEY TAKEAWAYS:
- It’s never too soon to begin an exit plan for your business to maximize the sale price.
- The reason for selling the business does have an impact on the value of your business.
- Personal crisis is the least favorable motivator to selling a business leaving you with the least profit.
ABOUT THE HOSTS:
Danielle Mulvey is a former flight attendant-turned-entrepreneur and owns multiple businesses doing $50 million in annual revenue. She is one of the exclusive, select group of Mastery-Certified Profit First Professionals worldwide and the go-to “HOW TO IMPLEMENT” workshop facilitator for Profit First and WSJ Journal best-selling author Mike Michalowicz following his keynote speeches. Danielle is currently running multiple businesses, from start-ups to mature businesses with 10-year plus track records and revenues ranging from $1M to $40 million in annual revenues and is a certified numbers geek about Profit First, leveraging the DIY cash management system for small business to achieve maximum profitability. She can personally guide business owners to achieve maximum profitability based on her 25 years of experience as an entrepreneur who has been there and done that.
Additionally, Danielle authored the book The Rapid Read™ Guide to The 5-Star Employee Rating System™ and is currently collaborating with Wall Street Journal best-selling author Mike Michalowicz on his new book, to be released in Q1 2024, titled ALL IN: How Great Leaders Build Unstoppable Teams.
Mike Michalowicz is an entrepreneur and New York Times and Wall Street Journal best-selling author of Profit First, The Pumpkin Plan, SURGE, Toilet Paper Entrepreneur, Clockwork, Fix This Next and Get Different. BusinessWeek called Toilet Paper Entrepreneur, a business cult classic. His books have been translated into ten languages, and Mike has had the privilege to speak on stages worldwide because of his passion for connecting with entrepreneurs.
As the founder of Profit First Professionals, he empowers accountants, bookkeepers, and business coaches with the tools and techniques to maximize client profitability, allowing them to uplevel from being one of the 83% of small businesses operating check-to-check and struggling to be profitable to becoming one of the 17% of thriving and highly valuable businesses with cash in the bank to correlate to profitability. Mike also co-founded the business growth consultancy Provendus Group and has successfully founded, built, and sold two technology service-based companies. He is passionate about sharing his experiences and advice with entrepreneurs and sits on formal and informal advisory boards while maintaining relationships with angel and early-stage investors.
RESOURCES:
Profit First Professionals - Website