I hear it all the time: profit, profit, profit. Yes, profit is the incentive, but it’s just a piece of the larger puzzle when increasing company value. We explore 6 ways your organization can increase your company value right now.
Let’s dig into it from a Growth CFO mindset.
Increase Company Value Tip 1 – Accounting is King
I deemphasize the role a Growth CFO has in accounting because simply, there’s so much more to offer. But my colleagues and I can’t get into the depth of the issues with a CEO who hasn’t secured their accounting formula. Accounting is straightforward compared to Growth CFO level work.
You need a system that allows you to act, rebound, and realign when new information is presented. You need the hard details ready to go so you can reference them and make decisions at the moment, insured by the numbers.
To a buyer, this is paramount. No one wants to pay top dollar for a company whose books are not in order. This will also cause challenges and heartaches during due diligence.
The more your accounting works for your company before you sell, the less work a new CEO has to handle. The fewer surprises you can give them, the better – for you.
Increase Company Value Tip 2 – Make Sure the Company Works When You’re Away
This is perhaps the hardest part for CEOs to realize; let’s focus on it relatively upfront: a business that runs without you micromanaging every manager, employee, and contract worker can live well past your lifetime running things. Is this scary? Maybe a little: letting things fly can lead to disaster in the wrong circumstances.
But that’s the distinguishing force. You need to develop leaders and trust their ability to convert. In many businesses, this is a no-brainer, and selling the company has little impact on your employee’s ability to keep things running smoothly through the transition. Sure, things change, and your impact is undoubtedly felt. But if you take a leave, vacation, or sell, things need to operate at near-best – especially when a buyer is expecting to make a transition over months or years.
Growth CFOs work on CEO Mindset, CEO Owners Trap, and organizational capacity to assure that the financial flight plan can be met or exceeded by the team they have on the field.
Let things fly. Stop hovering over every departmental change. Trust and believe in your structure, because that’s where the beauty lies. You’ve delegated the role – let it proliferate on its own. Lastly, make sure to announce your absence when you leave. Being upfront always makes things easier, and announcing the change will allow you to let go just a bit more.
Increase Company Value Tip 3 – Curate Stellar Employees
As we’ve discussed before, talent is key and leads the charge into any arena you’re willing to conquer. Make this overt to buyers. A good employee adds potential to your company, and a series of strong managers and individuals add power, value, and overall shine to what your company looks like at a glance, and a deeper view, to a potential buyer.
Do you create loyalty with your hires? It starts with newcomers and transcends into those who keep the lifeblood thriving year after year. Loyalty marks your impact on the company as a whole, and it should already drive your profit margins and growth incentives. But as a Growth CFO who’s handled plenty of companies through transition and succession, I know for a fact that buyers need to know that your employees play for your team alone.
If you’ve got people who stay for the long haul, promote that upfront! Be loud about why people stay here, and your buyer will buy in. Don’t fall for the owner’s trap!
Increase Company Value Tip 4 – Develop a Recognizable Brand
You do this every day. So why talk about it?
Simply, the easier it is for a random person to locate and recognize your brand, the more market value it has. This means selling price, almost directly.
Even if your marketing strategy is perfect, only rolled out a year prior, it’s a great idea to revamp it and redesign it for the transitional period. Get something ready to bust out the gates before you’re ready to hand it all over.
Let the people know you’re ready to grow. Frame the transition in a positive light. This is a time where new things will happen and stakeholders stand to benefit. Refresh the content on your site, testimonials, webinars, campaigns, and more. Everything the light touches should feel this change, and you want it all to align with this new era your company is about to embark upon.
Increase Company Value Tip 5 – Develop a Desirable Office Environment
This goes hand-in-hand with stellar employees. People want to stick around when they know and feel, that you want them there.
Get the physical space going. Architecture, feel, and comfort matter more than you might think from your own office. But just think about what you take for granted in your chamber.
Developing an incredible workplace keeps people around and feeling good at work. The better they feel, the more time they’ll spend interacting and collaborating in shared spaces. Art and decor go a long way, just like they would in your home. Bright, colorful environments have psychological benefits. And while you shouldn’t break the bank to make the office pop, it’s more impactful than you’ll think at a glance.
Increase Company Value Tip 6 – Move Forward with an Unimpeachable Vision
The clearer you think about – and belief in – your vision, the better it trickles down into every facet, nook, and cranny of your organization. This is exciting to newcomers and buyers. They want something that sparks with vision and is laden with unique ideas that will lead it forward to new heights.
Many of the Companies we work with do not have a clear vision for the future, let alone have everyone rowing in the same direction. How could they do this if they don’t know where they are going?
Think about all these things we’ve mentioned in terms of your perspective. Are you hitting all the marks, checking all the boxes? Well, if not, who are you waiting for to come to buy? This stuff comes first and foremost, and until you do it all, you might not find the buyer you’re hoping for – or who you deserve beneath it all.
Outsourcing and hiring advisors can make sense for any company at any time. But if you’re already thinking of battling operating costs, it’s to your benefit to enlist the help of a trained professional skilled in helping owners make these kinds of decisions. It might not come naturally to you, but you can train yourself to know what to look out for and when to bring in outside help.
Do you have ideas about how to sell? What about buyers in your market who you’re ready to approach?
Foresight CFO is always here to help. We’ve got the tools, experience, and chops to execute this precarious decision and let you enter the next stage of your life and career on strong footing.
Reach out today for a no-hassle consultation and learn more about how we can drive your growth. Feel free to use this link to Schedule a 25 Minute Discovery Call.
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