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Should run your business like it's for saleSelling your business might not be a goal that’s on the table now or a goal that you ever plan on achieving. Even if selling your company isn’t an option, operating the business as if someone might buy it at any moment is generally a good idea. Running your business as if a potential buyer is looking over your shoulder will help you maintain excellent business records and nip any small problems in the bud, before they become major concerns.

Correct Small Issues Before They Become Big Issues

You can compare a person or company who’s in the market to buy a business to a person in the market to buy a home. While some buyers don’t mind investing in the fixer-uppers, which need a bit of elbow grease before they reach their full potential,  the majority of buyers are on the lookout for a turn-key property. They want to hand over the money and move in.

The same is largely true for individuals or companies who purchase businesses. A potential buyer doesn’t want to have sort through the former owner’s problems and mistakes or try to right a sinking ship. If you run your company as if someone could or will buy it at any moment, you learn to keep an eye out for any issues that seem small at first, but can turn into larger problems if not corrected immediately.

Problems that might seem insignificant at first but that can interfere with your company’s success later on include difficulties keeping track of inventory, lease and landlord troubles, and a high employee turnover.

Look at the Books

Keeping strong records is a must, whether your goal is to sell or not. If a company’s financial records are in disarray, potential buyers are often turned off, as they don’t want to purchase something that might be standing on shaky ground financially.  Keeping good books doesn’t just appeal to buyers. It can also help you handle the day to day running of your business. You’ll be able to see if the money your business is bringing in is equal to or more than the money that is going out. You’ll have a good idea of how your accounts receivable are faring. If there are any problems, such as employees skimming off of the top, you’ll be able to spot those quickly, but only if the books are in good working order.

Simplify Policies

You’re in an elevator with a potential buyer and you have 30-seconds to tell him or her about your company. What do you say? Having a simple, easy to explain vision for your company is essential not only when you’re trying to appeal to an outside buyer but also when it comes to the day to day running of the business.

A person who is trying to get up to speed on the policies and procedures of your company shouldn’t have to spend hours doing so. The  more time a person needs to  understand what your company does or what his or her role in it might be, the less time that person can spend being a contributing member of your staff. Have an outside party take a look at your company’s policies and let you know if they are confusing or if they are clear and easy to understand off the bat.

Ease Transition

Another reason why you want to operate your business as if it might sell tomorrow is that there is a slight chance that it might sell tomorrow. You never know what might happen to you or to the others at the head of the company. You want your business to able to continue to thrive and succeed, even if you aren’t able to be there to direct and guide it. Aim to build up your business so that it continues to drive itself, even if you aren’t behind the wheel.

If your business isn’t running as if it’s for sale, the team at New Direction Capital can help. We can help you put your business’ financial house in order, develop a plan and strategy, and overcome any problems along the way. To start operating your company as if it’s for sale, contact us today.

 

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Successfully running a business means more than having a terrific idea and a strong customer base. It also means having a full understanding of your company’s financial health and what your business needs to do to achieve its goals financially. At many larger businesses, a chief financial officer (CFO) is the executive in charge of overseeing a company’s financial details, taking care of both income and expenses.

While small or mid-sized companies also need the services of a CFO, they often don’t have money in the budget to hire another senior manager, which is where a virtual CFO can step in. The services provided by a virtual CFO and a company such as New Direction Capital are designed to help your business grow.

Experience You Need at a Price You can Afford

The problem many small or mid-size businesses face is that the cost of hiring a full-time CFO exceeds their budget. Hiring a full-time employee means not only having enough to cover his or her wages, but also putting together a benefits package. The more experienced and talented the CFO, the higher the cost. One solution is to hire an entry-level accountant or financial officer, but that person will often not have the experience needed to know how to go after the right type of funding or how to implement a plan that allows a company to grow.

When your business decides to outsource the responsibilities of a CFO, you can get the experience you need for the most growth without paying for a full-time employee. You can work with a virtual CFO on an as-needed basis, such as during a project or work with the CFO on a regular, part-time basis.

Grows with Your Business

The role of a virtual CFO can grow and change as your business needs grow and change. Instead of needing to hire an additional employee, you can simply shift the role and responsibility of the virtual CFO to meet your needs at the moment. For example, you may initially work with New Direction Capital to help your company save money. A few years down the road, your business might need to find a new source of capital or financing, at which time the focus and role of the virtual CFO can also change.

Services Shaped to Meet Your Needs

Since every business is different, the exact role of a virtual CFO will also be different. Although not an employee, your virtual CFO becomes an important member of your team, working with you directly to come up with customized solutions for your company. The focus of a virtual CFO is on building a relationship with you and your business. Having a clear idea of what your company wants and needs allows the CFO to tailor a solution that works for you.

24/7 Availability

There is no 9 to 5 in the virtual CFO world. New Direction Capital is committed to providing around the clock service to clients, which means that if you discover a financial problem at 10 pm on a Friday or in the early morning on a Tuesday, you can reach out to your CFO for help and guidance.

Help You Reach Your Goals

Where do your see your business in five or 10 years? If you are unsure, a virtual CFO can help you create goals and then put a plan into place that helps you realize those goals. For example, a CFO can help you decide if it’s the time to expand your company by opening another location or if it’s the time to make the move from leasing property to owning it.

If you are ready to take your business to new heights or need assistance getting your financial details in order, New Direction Capital can help. Contact us today to learn more about how our services can best serve your company.

 

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