If you’re an SME owner-manager, one of your goals may eventually be to sell your business. However, unless you have decent internal processes, you may struggle to get the best possible price for your company.
Choosing to invest in business process optimisation – and, potentially, a new business management solution like SAP Business One – can dramatically improve the value of your firm to prospective buyers.
Not entirely sure about the negative impact that your processes could be having on your business? Here are a few consequences that could affect your potential to sell:
Nobody can access your data
Carrying a lot of business-critical information around in your head can be useful – but only for you. If important data isn’t available anywhere else, or you’re using disjointed business management systems and a plethora of spreadsheets, a prospective buyer will find it almost impossible to take over the business without your involvement.
The lack of a single source of information will also make it difficult for you to present compelling performance data and forecasts to prospective buyers. In order to secure a purchase, it’s essential to convey your unique strengths to them, as well as tell them a convincing story about your still-to-be-realised potential. Without visibility into performance data, it can be problematic to even know what your strengths and weaknesses are, let alone emphasise the former and address the latter.
To fix this, you could invest in a decent ERP solution to synchronise data across your various business systems and allow you to easily access important information – all in one place.
It’s difficult to present a trustworthy picture of your firm’s financial health
In addition to performance data, prospective buyers are also going to want to see a spotless balance sheet. Without strong controls and processes in place, it can be difficult to present them with a trustworthy picture of your firm’s financial health, as well as give them peace of mind that your accounting and reporting is compliant.
Your productivity and reputation are affected
In terms of day-to-day productivity, flawed processes can contribute to a high rate of customer and employee churn, poor use of resources, and unprofitable work (due to unforeseen time and budget overruns, for example), none of which are attractive to prospective buyers.
What’s more, flawed processes can prevent you from identifying and addressing the root causes of these problems, meaning you can’t easily demonstrate to buyers how you plan to deal with them.
Your business processes aren’t evolving
If your processes haven’t evolved with your business, it can give the impression that your company culture isn’t receptive to change, it can’t adapt according to the circumstances and you don’t really have what it takes to be a competitive player.
Taking the time to optimise your business processes will ensure the longevity of your company, increase its value and the likelihood of a sale to a good quality, compatible buyer. To learn more about how you can grow your business and solve your process problems, download our free guide now.