The Gap Between You and a Successful Exit: Do You Know Yours?

Tactical Planning Leads to Successful Outcomes

Have you taken time to identify and quantify your value gap?   A value gap is created when the amount of money you will need to leave your company is less than the current value of your company. 

The size of your gap determines

  1. what needs to be done
  2. how it is to be done
  3. when each value building action needs to begin and
  4. who is to undertake each such activity.
  5. Your next question should be, “How can I take concrete and immediate steps to close it?”

Most owners know they have to increase business value and want to grow their companies. But most don’t know how to do so. That knowledge begins with first determining the scope of the value-building project

If you are to reach your goal within your timeframe, you must start work today. You will have to re-orient yourself from working in the business to working on the business. This means that as tempting as it is to put out every fire, you must set aside time each day to take action to increase value.

Second, you will need to lay the groundwork for increasing value by determining how much the company needs to grow each year. This begins with creating monthly, quarterly and annual cash flow projections, and then directing your company’s energy toward achieving these immediate goals. An annual business plan based on these goals will become your roadmap to driving value upward.

Your gap analysis is the foundation for all of your value building choices:

  • the tools and processes you will use
  • the support you will need
  • the intensity of your efforts
  • Creating a value building plan based on what you want is a first step in taking charge of your and your company’s financial future.

About Risa Baker

Risa is Managing Director of PARTNERS 31. Her natural enthusiasm and years of industry experience will successfully guide your business, whatever its size or specialty, through every aspect of exit planning, from strategy to sale.

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