Structure/Systems

How structure and systems relate directly with the appeal and value of a business to a buyer.

1. Putting a $ value on your business (current and future state).

YOU are a buyer looking to purchase a business – you have 2 choices in the same industry, both with very similar turnover and GP and asking price: -

Case Study 1 -

• Well established business with sound client retention,
• Very little marketing, mainly word of mouth,
• Staff have been there for years and know what they are doing, but no specific policies, systems or procedures in place,
• Business name is the name of the current owner and the owner is the go-to person in the operation.

Case Study 2 –

• Well established business with sound client retention,
• 12 month marketing plan in place and results have been improving,
• Staff know what to do, but they have specific policies, systems, and procedures in place for all facets of the business,
• The business names is a generic name,
• And is under management.

Which one would you buy and why?

2. Structure/Systems

What structures/systems do you have in your business? If you don’t, you get to get them in place.

Why do you need them?

• clarity and direction within the business,
• building blocks for growth and profitability.
• set the tone for the culture and behaviours that you are wanting in your business.
• recruit the right people for the right roles and responsibilities and ensure that the right people stay for a long time.

They are designed to assist with the efficiency of the business, not to strange and inhibit it.

So, it is about others being able to walk in and follow them without causing even the smallest ripple in the organisation – a walk in walk out philosophy.

These are some incredibly powerful ways of making your business not only more valuable and appealing to a buyer, but also far more efficient for you and your staff to work in.