Having an exit plan is crucial, not just for the eventual sale, but because it serves as a comprehensive roadmap guiding daily decisions. It prompts business owners to ask, 'Is this decision taking me one step closer to my exit goal or away from it?' This strategic lens ensures that every move aligns with the long-term vision.
If you have resolved to make your company more valuable in 2024, you may want to think hard about how your customers pay. If you have a transaction business model where customers pay once for what they buy, expect your company’s value to be a single-digit multiple of your Earnings Before Interest Taxes, Depreciation and Amortization (EBITDA).
Specializing in one product or service allows you to focus on delivering that thing better than everyone else. It enables you to hire (or train) specialists in your field, improving the quality of your work, which leads to happier customers. And satisfied customers buy again and refer their friends.