The document provides guidance on properly preparing a business for sale. It discusses when preparation should begin (ideally 2-3 years in advance), how to make the business attractive to buyers by promoting its strengths and ensuring a strong management team is in place. It also discusses operational preparations like financial reporting and IT systems. Financial statements can be improved by growing revenue, controlling expenses, and cleaning the balance sheet. Employees should be informed selectively as the sale process progresses.
The document discusses key account management (KAM), which involves targeting and serving high potential customers with complex needs. It provides examples of companies like P&G and FedEx that use KAM. It outlines the advantages of KAM, such as improved communication and higher sales. However, it also notes disadvantages like increased dependence on few customers. The document then discusses the tasks, skills, and success factors involved in effective KAM, such as developing long-term relationships, technical support, and trust between supplier and customer.
This presentation discusses prioritizing sales territory management activities to maximize results. It recommends first managing existing customers by introducing yourself at every interaction, understanding their experience and identifying areas for improvement. Second, identify target prospects by making a list with the sales team and pursuing those with the greatest potential first. Finally, measures like registering complaints, listening, understanding problems, providing solutions, and getting feedback can help build and strengthen relationships with both existing and prospective customers.
Strategic account management is a systematic process for managing key interactions and relationships with critical accounts that generate the majority of a company's revenue. It involves assigning account managers to a few select strategic customers to develop a deep understanding of their business and needs in order to create and provide strategic solutions that increase the company's share of the customer's purchases over 1-3 years. The goals are to ensure long-term financial growth and profitability from these most important accounts.
Strategies for Managing Sales Teams: How to find, select and compensate these...MaRS Discovery District
Hiring, managing and compensating effective salespeople is one of the biggest challenges faced by young companies, it can also be the area where most executives have the least experience and the most discomfort from a management perspective. This practical, experience based session will work through the importance of identifying, sourcing and hiring the right person for the needs of your business, considerations in managing them, and structuring compensation plans to incent the right results, and protecting the company's ability to turn a profit.
Helen Robert and Lynn Cameron, Managing Partners of TechEdge, and
Margo Crawford, President & CEO, Business Sherpa
Basics of Retail Math + Retail InterviewJulia Orsa
Retail Terminology, Math and Interviewing tricks you need in 1 hour. Full Free voiceover e-lessons at:
http://jules-o.thinkific.com/collections/retail
In one go, you will acquire the retail knowledge that takes years to master on the job, solve business problems with skills equal to any senior VP, A+ your first industry Interview, & pass that tricky Retail Exam.
This document provides guidelines for writing an entrepreneur business plan, outlining the key sections to include and topics to address within each section. The major sections are the executive summary, opportunity, solution, marketing and sales plan, operations plan, team, financial plan, and appendix. For each section, it lists the focus areas from the Business Model Canvas and provides brief descriptions of the types of information to include. The goal is to clearly convey the problem being solved, products/services, customers, operations, finances, risks, and team in order to secure funding and resources to launch the new venture.
Key account management vs Traditional sales - Quick comparison guide Hakeem Adebiyi
Whats the difference between KAM, this seems to be the most popular question on all KAM forums. Personally I think a better question is what skills are required to achieve the business goals of your organisation? However the popularity of the question and the debate it generates has led me to produce a quick comparison guide .
Need to strengthen collaboration Retailer-Supplier?
If manufacturers and retailers wish to achieve top performance under the new commercial scenario, they must re-define the rules of the game, develop an integrated vision of opportunities and threats to be faced and push the limits of collaboration to unprecedented levels. Not easy, but possible.
Our Model of Cooperation for Growth
At TMC Consulting we have developed an innovative planning model that ensures integration and team effort. The advantage of this model is that the end result is an Account Plan built with the joint effort and collaboration of the industry and retailers, focusing on the most relevant and shared opportunities to generate value for all players.
The document discusses key account management (KAM), which involves targeting and serving high potential customers with complex needs. It provides examples of companies like P&G and FedEx that use KAM. It outlines the advantages of KAM, such as improved communication and higher sales. However, it also notes disadvantages like increased dependence on few customers. The document then discusses the tasks, skills, and success factors involved in effective KAM, such as developing long-term relationships, technical support, and trust between supplier and customer.
This presentation discusses prioritizing sales territory management activities to maximize results. It recommends first managing existing customers by introducing yourself at every interaction, understanding their experience and identifying areas for improvement. Second, identify target prospects by making a list with the sales team and pursuing those with the greatest potential first. Finally, measures like registering complaints, listening, understanding problems, providing solutions, and getting feedback can help build and strengthen relationships with both existing and prospective customers.
Strategic account management is a systematic process for managing key interactions and relationships with critical accounts that generate the majority of a company's revenue. It involves assigning account managers to a few select strategic customers to develop a deep understanding of their business and needs in order to create and provide strategic solutions that increase the company's share of the customer's purchases over 1-3 years. The goals are to ensure long-term financial growth and profitability from these most important accounts.
Strategies for Managing Sales Teams: How to find, select and compensate these...MaRS Discovery District
Hiring, managing and compensating effective salespeople is one of the biggest challenges faced by young companies, it can also be the area where most executives have the least experience and the most discomfort from a management perspective. This practical, experience based session will work through the importance of identifying, sourcing and hiring the right person for the needs of your business, considerations in managing them, and structuring compensation plans to incent the right results, and protecting the company's ability to turn a profit.
Helen Robert and Lynn Cameron, Managing Partners of TechEdge, and
Margo Crawford, President & CEO, Business Sherpa
Basics of Retail Math + Retail InterviewJulia Orsa
Retail Terminology, Math and Interviewing tricks you need in 1 hour. Full Free voiceover e-lessons at:
http://jules-o.thinkific.com/collections/retail
In one go, you will acquire the retail knowledge that takes years to master on the job, solve business problems with skills equal to any senior VP, A+ your first industry Interview, & pass that tricky Retail Exam.
This document provides guidelines for writing an entrepreneur business plan, outlining the key sections to include and topics to address within each section. The major sections are the executive summary, opportunity, solution, marketing and sales plan, operations plan, team, financial plan, and appendix. For each section, it lists the focus areas from the Business Model Canvas and provides brief descriptions of the types of information to include. The goal is to clearly convey the problem being solved, products/services, customers, operations, finances, risks, and team in order to secure funding and resources to launch the new venture.
Key account management vs Traditional sales - Quick comparison guide Hakeem Adebiyi
Whats the difference between KAM, this seems to be the most popular question on all KAM forums. Personally I think a better question is what skills are required to achieve the business goals of your organisation? However the popularity of the question and the debate it generates has led me to produce a quick comparison guide .
Need to strengthen collaboration Retailer-Supplier?
If manufacturers and retailers wish to achieve top performance under the new commercial scenario, they must re-define the rules of the game, develop an integrated vision of opportunities and threats to be faced and push the limits of collaboration to unprecedented levels. Not easy, but possible.
Our Model of Cooperation for Growth
At TMC Consulting we have developed an innovative planning model that ensures integration and team effort. The advantage of this model is that the end result is an Account Plan built with the joint effort and collaboration of the industry and retailers, focusing on the most relevant and shared opportunities to generate value for all players.
The document discusses key aspects of sales force organization and compensation. It covers topics like designing sales territories, factors that influence territory and compensation plan design, different types of compensation plans including financial and non-financial components, and the steps to design an effective compensation plan. The goal is to prepare students for challenges of leading sales organizations and understanding important considerations for organizing the sales force and structuring their compensation.
Reach Operational Excellence with Territory ManagementKevin Baldacci
The document discusses the importance of carefully managing sales territories through data-driven segmentation and alignment of resources. It provides tips for territory planning such as getting an early start, avoiding disruption, using data to ensure balanced opportunities, and learning from past mistakes. The goal is to maximize sales team productivity and efficiency while reducing costs and turnover.
The document discusses sales forecasting techniques. It covers estimating market demand, company demand, and developing a sales forecast in three stages. Several qualitative and quantitative forecasting methods are described, including judgment-based techniques like the jury of expert opinion method and Delphi method, as well as quantitative sales extrapolation and customer-based methods. The purpose, process, and key considerations in sales forecasting are also outlined.
This document discusses key concepts related to sales budgets, quotas, territories, and control. It defines a sales budget as an estimate of sales volume and expenses set slightly lower than forecasts. Sales budgets are prepared by product, territory, salesperson, and customer. Quotas and territories are used to set performance standards, control results, and motivate teams. Territories assign exclusive areas to sales teams to reduce conflict and efficiently allocate resources. Control processes compare actual performance to targets and analyze expenses to ensure budget and objective achievement.
Sales Territory Design should support your sales strategy. In this presentation by Sales benchmark Index, you will learn the 3 goals of territory design and how to choose the one that best supports your strategy.
This document discusses financial strategy and performance measurement for retailers. It introduces the strategic profit model, which assesses net profit margin and asset turnover to measure return on assets. The document then examines approaches to measure and improve profit margins through cost of goods sold, operating expenses, and inventory management. It also explores using objectives, productivity and financial metrics to evaluate performance over time, compared to competitors, and through stock price and return on assets. The overall goal is for retailers to effectively measure and enhance their financial returns and operations.
This is one of my favorite business plan templates out there to build a brief and sufficient business plan.
It's got all the important components and is self-explanatory.
Describes about the Key Account Management as a Manager's Capability.
Inferences from the Research paper of Björn S. Ivensa, Alexander Leischnigb,
Catherine Pardoc, Barbara Niersbachd
Growing your business via strategic account management frameworkPiyush Poddar
This session will take you through our Account Management Practice and share some real-life case studies demonstrating how we hit target sales quota by 2-3x and achieved maximum strategic account objectives within the desired timeline.
We will look at various aspects of a successful Customer Account Management framework like
- Customer onboarding process
- Kickoff meetings
- Routine engagement health check-ins
- Invoicing and collections management
- Satisfaction surveys and testimonials management
- Complaint and grievances management
- Contract renewals and extensions.
- Opportunity exploration via researching client’s organisation, industry, seeking references, social media listening etc.
- Evangelizing client via social, digital marketing and event participations.
The document discusses key concepts for account management in sales. It defines important terms like account, account management, sales momentum, and differentiates between account development and management. It also outlines the objectives and differences between contact/lead management, opportunity management, and account management. The document emphasizes that account management is a focused and proactive process to build influence and sales over time by understanding the "greater picture" of an account. It also discusses seven habits of effective account managers, including being proactive, beginning with the end in mind, and putting first things first.
The document discusses various methods for sales forecasting. It describes qualitative methods like jury of expert opinion and Delphi method which rely on expert judgments. Quantitative methods like naive method, moving averages, and exponential smoothing use past sales data to project future trends. Customer-based methods involve market testing of new products and surveying potential buyers to directly assess future demand. The goal of sales forecasting is to estimate future revenues in order to optimize supply chain management, production planning, and profitability.
The document provides guidelines for key account managers at ABC Food Co. It outlines responsibilities like developing annual contracts and customer plans, managing sales targets, product listings and promotions, as well as monitoring customer service and profitability. It also discusses managing the relationship with key accounts through annual contracts, sales reports, marketing plans, financial processes, merchandising in stores, and collaboration across internal teams. The goal is to strengthen relationships and achieve sustainable profitable growth aligned with ABC's overall strategy.
Learn the top 5 things every business owner should know about their businessJohn Graham
Successfully growing your business means you utilize data to steer your company in the right direction. Understand how to develop a dashboard that measures company performance. Learn the top 5 things every business owner should know about their business, how to assemble and present that information.
The document outlines a key account management improvement plan for 2013. The plan aims to improve customer satisfaction and increase business volume with key accounts by establishing a separate key account management department, selecting key accounts based on potential and sales data, improving internal communication across departments regarding key accounts, and enhancing the company's value proposition around product quality, service, and value compared to competitors. The key account management team will focus on understanding customers' businesses, needs, and views of the company in order to strengthen relationships and drive organic growth.
Five key elements that drive the value of your businessMatthew Wirgau
Use These Five Fundamentals to Increase Your Business Value
Every business owner, Board of Directors, CEO, President, or entrepreneur should know the value of their business.
Because it’s hard to accurately determine the value of a business, many just ignore it. Too often, business owners get a mistaken view of value when they hear the price that another business owner received. I call this “the Valuation Gap”.
Business value is a combination of profitability, future certainty of profits, and the transfer-ability of the profits to a new business owner.
Knowing the value of your business is a prerequisite to good management.
Even if you have no intention of selling and you will be passing your business on to your next generation, you should know its value.
Going through the valuation process gives insight into your company’s historical performance and its potential future.
If you know the value of your business, you will be more prepared to make effective management decisions that will make it more successful in the future. If you don’t know the value of your business and what is driving its value, you could very easily end up doing things and making mistakes that will destroy its value over the long-term.
The document outlines key account management best practices including analyzing high potential accounts, reallocating resources, understanding customer needs and requirements, developing account plans with goals and accountability, monitoring performance, and holding account teams accountable. It also provides an overview of the key account management process with steps for analyzing and classifying customers, profiling and planning for key accounts, executing account plans, and evaluating account performance.
Business Planning | Donald S. HarmelinVikas Kamboj
A marketing plan is a comprehensive document or blueprint that outlines business advertising and marketing efforts for the coming year. It describes business activities involved in accomplishing specific marketing objectives within a set time frame.
The document provides guidance on developing an effective territory management plan. It emphasizes assigning accounts to salespeople based on account potential and salesperson skills. Key elements include determining each account's available business, prioritizing accounts, establishing sales targets, and deploying resources. The document stresses involving salespeople to develop sustainable plans that maximize operating plan goals.
The document discusses key account selling and management. It defines key accounts as the top 20% of customers that provide 80% of profits, based on the 80/20 principle. The benefits of key account programs include economies of scale, understanding customer goals, and sustainable sales. Key criteria for selecting key accounts include sales volume, profits, financial stability, and coherence with company strategy. The document also cautions that key account programs require sufficient benefits and should not rely too heavily on just a few large customers.
This document discusses key aspects of sales management including sales information systems, planning, forecasting, and budgeting. It focuses on using data from information systems like data warehouses and data mining to answer important sales questions and inform planning. Sales forecasting involves macro and micro approaches to predict future sales based on past data and customer insights. Sales budgets are developed based on forecasts and allocate resources to achieve sales targets through selling expenses and administrative costs.
importance of Business plan in entrepreneurshipNeha Chouhan
This document discusses the importance of developing a business plan for entrepreneurship. It begins by defining a business and entrepreneurship. It then explains that a business plan is a selling document that conveys the promise of a business to potential backers. The document outlines the key components of a business plan, including an executive summary, company summary, products/services, market analysis, strategy, management, and financials. It emphasizes that a business plan provides insight into a business, can help secure financing, and allows owners to objectively evaluate strengths and weaknesses. Developing an extensive plan takes time but can prevent business failure and guide long-term success.
This document provides an overview of managing sell-side due diligence for mid-market private companies. It discusses:
- The typical steps involved in an M&A sale process, which generally takes 4-6 months and includes preparing the company, marketing to potential buyers, conducting due diligence, negotiating offers, and closing the transaction.
- Key aspects of preparing a company for sale including ensuring paperwork is in order, cleaning up the balance sheet, improving physical appearance, developing a business plan, and preparing management.
- Common due diligence activities undertaken by buyers to evaluate whether to make an offer, how to structure the deal, and how much to pay. This includes financial, legal, technical, and
The document discusses key aspects of sales force organization and compensation. It covers topics like designing sales territories, factors that influence territory and compensation plan design, different types of compensation plans including financial and non-financial components, and the steps to design an effective compensation plan. The goal is to prepare students for challenges of leading sales organizations and understanding important considerations for organizing the sales force and structuring their compensation.
Reach Operational Excellence with Territory ManagementKevin Baldacci
The document discusses the importance of carefully managing sales territories through data-driven segmentation and alignment of resources. It provides tips for territory planning such as getting an early start, avoiding disruption, using data to ensure balanced opportunities, and learning from past mistakes. The goal is to maximize sales team productivity and efficiency while reducing costs and turnover.
The document discusses sales forecasting techniques. It covers estimating market demand, company demand, and developing a sales forecast in three stages. Several qualitative and quantitative forecasting methods are described, including judgment-based techniques like the jury of expert opinion method and Delphi method, as well as quantitative sales extrapolation and customer-based methods. The purpose, process, and key considerations in sales forecasting are also outlined.
This document discusses key concepts related to sales budgets, quotas, territories, and control. It defines a sales budget as an estimate of sales volume and expenses set slightly lower than forecasts. Sales budgets are prepared by product, territory, salesperson, and customer. Quotas and territories are used to set performance standards, control results, and motivate teams. Territories assign exclusive areas to sales teams to reduce conflict and efficiently allocate resources. Control processes compare actual performance to targets and analyze expenses to ensure budget and objective achievement.
Sales Territory Design should support your sales strategy. In this presentation by Sales benchmark Index, you will learn the 3 goals of territory design and how to choose the one that best supports your strategy.
This document discusses financial strategy and performance measurement for retailers. It introduces the strategic profit model, which assesses net profit margin and asset turnover to measure return on assets. The document then examines approaches to measure and improve profit margins through cost of goods sold, operating expenses, and inventory management. It also explores using objectives, productivity and financial metrics to evaluate performance over time, compared to competitors, and through stock price and return on assets. The overall goal is for retailers to effectively measure and enhance their financial returns and operations.
This is one of my favorite business plan templates out there to build a brief and sufficient business plan.
It's got all the important components and is self-explanatory.
Describes about the Key Account Management as a Manager's Capability.
Inferences from the Research paper of Björn S. Ivensa, Alexander Leischnigb,
Catherine Pardoc, Barbara Niersbachd
Growing your business via strategic account management frameworkPiyush Poddar
This session will take you through our Account Management Practice and share some real-life case studies demonstrating how we hit target sales quota by 2-3x and achieved maximum strategic account objectives within the desired timeline.
We will look at various aspects of a successful Customer Account Management framework like
- Customer onboarding process
- Kickoff meetings
- Routine engagement health check-ins
- Invoicing and collections management
- Satisfaction surveys and testimonials management
- Complaint and grievances management
- Contract renewals and extensions.
- Opportunity exploration via researching client’s organisation, industry, seeking references, social media listening etc.
- Evangelizing client via social, digital marketing and event participations.
The document discusses key concepts for account management in sales. It defines important terms like account, account management, sales momentum, and differentiates between account development and management. It also outlines the objectives and differences between contact/lead management, opportunity management, and account management. The document emphasizes that account management is a focused and proactive process to build influence and sales over time by understanding the "greater picture" of an account. It also discusses seven habits of effective account managers, including being proactive, beginning with the end in mind, and putting first things first.
The document discusses various methods for sales forecasting. It describes qualitative methods like jury of expert opinion and Delphi method which rely on expert judgments. Quantitative methods like naive method, moving averages, and exponential smoothing use past sales data to project future trends. Customer-based methods involve market testing of new products and surveying potential buyers to directly assess future demand. The goal of sales forecasting is to estimate future revenues in order to optimize supply chain management, production planning, and profitability.
The document provides guidelines for key account managers at ABC Food Co. It outlines responsibilities like developing annual contracts and customer plans, managing sales targets, product listings and promotions, as well as monitoring customer service and profitability. It also discusses managing the relationship with key accounts through annual contracts, sales reports, marketing plans, financial processes, merchandising in stores, and collaboration across internal teams. The goal is to strengthen relationships and achieve sustainable profitable growth aligned with ABC's overall strategy.
Learn the top 5 things every business owner should know about their businessJohn Graham
Successfully growing your business means you utilize data to steer your company in the right direction. Understand how to develop a dashboard that measures company performance. Learn the top 5 things every business owner should know about their business, how to assemble and present that information.
The document outlines a key account management improvement plan for 2013. The plan aims to improve customer satisfaction and increase business volume with key accounts by establishing a separate key account management department, selecting key accounts based on potential and sales data, improving internal communication across departments regarding key accounts, and enhancing the company's value proposition around product quality, service, and value compared to competitors. The key account management team will focus on understanding customers' businesses, needs, and views of the company in order to strengthen relationships and drive organic growth.
Five key elements that drive the value of your businessMatthew Wirgau
Use These Five Fundamentals to Increase Your Business Value
Every business owner, Board of Directors, CEO, President, or entrepreneur should know the value of their business.
Because it’s hard to accurately determine the value of a business, many just ignore it. Too often, business owners get a mistaken view of value when they hear the price that another business owner received. I call this “the Valuation Gap”.
Business value is a combination of profitability, future certainty of profits, and the transfer-ability of the profits to a new business owner.
Knowing the value of your business is a prerequisite to good management.
Even if you have no intention of selling and you will be passing your business on to your next generation, you should know its value.
Going through the valuation process gives insight into your company’s historical performance and its potential future.
If you know the value of your business, you will be more prepared to make effective management decisions that will make it more successful in the future. If you don’t know the value of your business and what is driving its value, you could very easily end up doing things and making mistakes that will destroy its value over the long-term.
The document outlines key account management best practices including analyzing high potential accounts, reallocating resources, understanding customer needs and requirements, developing account plans with goals and accountability, monitoring performance, and holding account teams accountable. It also provides an overview of the key account management process with steps for analyzing and classifying customers, profiling and planning for key accounts, executing account plans, and evaluating account performance.
Business Planning | Donald S. HarmelinVikas Kamboj
A marketing plan is a comprehensive document or blueprint that outlines business advertising and marketing efforts for the coming year. It describes business activities involved in accomplishing specific marketing objectives within a set time frame.
The document provides guidance on developing an effective territory management plan. It emphasizes assigning accounts to salespeople based on account potential and salesperson skills. Key elements include determining each account's available business, prioritizing accounts, establishing sales targets, and deploying resources. The document stresses involving salespeople to develop sustainable plans that maximize operating plan goals.
The document discusses key account selling and management. It defines key accounts as the top 20% of customers that provide 80% of profits, based on the 80/20 principle. The benefits of key account programs include economies of scale, understanding customer goals, and sustainable sales. Key criteria for selecting key accounts include sales volume, profits, financial stability, and coherence with company strategy. The document also cautions that key account programs require sufficient benefits and should not rely too heavily on just a few large customers.
This document discusses key aspects of sales management including sales information systems, planning, forecasting, and budgeting. It focuses on using data from information systems like data warehouses and data mining to answer important sales questions and inform planning. Sales forecasting involves macro and micro approaches to predict future sales based on past data and customer insights. Sales budgets are developed based on forecasts and allocate resources to achieve sales targets through selling expenses and administrative costs.
importance of Business plan in entrepreneurshipNeha Chouhan
This document discusses the importance of developing a business plan for entrepreneurship. It begins by defining a business and entrepreneurship. It then explains that a business plan is a selling document that conveys the promise of a business to potential backers. The document outlines the key components of a business plan, including an executive summary, company summary, products/services, market analysis, strategy, management, and financials. It emphasizes that a business plan provides insight into a business, can help secure financing, and allows owners to objectively evaluate strengths and weaknesses. Developing an extensive plan takes time but can prevent business failure and guide long-term success.
This document provides an overview of managing sell-side due diligence for mid-market private companies. It discusses:
- The typical steps involved in an M&A sale process, which generally takes 4-6 months and includes preparing the company, marketing to potential buyers, conducting due diligence, negotiating offers, and closing the transaction.
- Key aspects of preparing a company for sale including ensuring paperwork is in order, cleaning up the balance sheet, improving physical appearance, developing a business plan, and preparing management.
- Common due diligence activities undertaken by buyers to evaluate whether to make an offer, how to structure the deal, and how much to pay. This includes financial, legal, technical, and
The document provides guidance on key sections to include in a business plan, including a cover page, summary, description of the business/product, market research, marketing plan, management overview, financial forecasts, and break-even analysis. It emphasizes that the summary should briefly describe the business purpose, how it will be achieved, and why the proprietor is well-suited to make it successful. Financial forecasts including profit/loss, cash flow, and balance sheet projections must also demonstrate that the business will be profitable and have sufficient cash flow.
Introduction to EntrepreneurshipPage 21 of 27Business Plan for aTatianaMajor22
This document provides guidance on creating a business plan. It recommends answering over 150 questions divided into sections to develop a collection of essays covering topics like the business description, products/services, marketing plan, operations plan, management team, and financial projections. The value is in the research and systematic thinking required. It typically takes several weeks to properly complete a good plan.
9 steps to prepare your business to sellPaula Carr
This document provides 9 steps for business owners to take to prepare their business for sale. These steps include increasing revenue, diversifying the customer base, de-emphasizing the owner's role, developing a strong management team, reducing family/owner perks, removing unnecessary assets, reducing inventory, updating business materials, and collecting outstanding payments. Taking these steps ahead of time will make the business more efficient and valuable to potential buyers.
This document provides an overview of best practices for sales structures and processes. It discusses defining roles like salespeople, account managers, and support teams. An effective sales structure also includes regular sales planning and tracking opportunities. The presentation emphasizes establishing clear sales steps, compensation plans, and holding an annual sales conference to review performance and goals.
Buyers want a business with a proven track record of consistent financial performance with solid, growing revenue and earnings. Yet most businesses are rather flabby when it comes to fiscal fitness. Focusing on the top financial drivers of business value will make it easier to sell your business and get you more money - then as well as now. Many businesses are dependent on the owner for success. If you want to add value, be sure you have systems running the business and a great team running those systems. Like financial and organizational factors, operational factors can add or take away value.
Corporate digest magazine july, 2017 by venture careKumar Kanaujia
Corporate Digest is a monthly e-magazine published for India Business owners by www.venture-care.com. It contents latest trends and expert opinions on Business, Strategy, Technology, Digital, Finance and Legal.
This document provides an overview and outline for writing an effective business plan. It discusses what a business plan is, when one is considered marketable, and how to structure and write one. The key sections of a business plan are described in detail, including the business concept, market analysis, management team, financial projections, risk assessment, and implementation timeline. Putting together an informative yet concise business plan is important for starting a new business and securing necessary funding.
This document provides 7 key tips for planning an exit strategy when selling a business: 1) Set a timeline of over a year for preparation and sale. 2) Prepare clean financial statements showing true profits to maximize sale price. 3) Educate yourself on current business valuation trends. 4) Understand the tax ramifications of the sale. 5) Build a diversified customer base that relies on no single client for over 10-15% of sales. 6) Build a management team so the business doesn't rely solely on the owner. 7) Reinvest in equipment and facilities to make the business attractive to buyers.
The document discusses acquiring an established business venture through purchasing an existing business. It notes that buying an existing business can represent less risk than starting a new business from scratch. However, one must perform due diligence to understand the terms of the purchase. The document provides advice on evaluating business opportunities and established ventures through examining financial records, operations, competition, and viability factors. It also discusses different business valuation methods like asset-based, earnings-based, and market-based approaches.
This business plan is for [Company Name]. The executive summary provides a concise overview of the company and its business concept, noting that it should be exciting and communicate how the concept is unique. The plan describes the company as [description of business] located at [address]. It summarizes financial objectives including sales goals, management strengths, and key products. The plan requests [$X] in [equity/debt] financing to fund operations and growth.
This document provides guidance on key elements to include in a business plan, including an overview of ownership structures, factors to consider when choosing a structure, tips for choosing a business name, the importance of networking, what investors seek in startup pitches, possible financing options, conducting industry and market analyses, outlining management needs, describing operations, and creating financial projections. It stresses that the executive summary should concisely summarize the business, management, market, operations, competition, and financials to entice readers to learn more.
Better Business Planning: Your Comprehensive Guide to Building Success
Introduction:
Embarking on a new business venture or seeking to elevate an existing one? Whether you're a budding entrepreneur or aiming to secure funding from venture capitalists, the importance of a well-crafted business plan cannot be overstated. Welcome to "Better Business Planning," an e-book that serves as your indispensable guide to creating a comprehensive, thoughtful, and compelling business plan. Here, you'll find all the essential information you need to transform your business vision into a strategic roadmap for success.
Chapter 1: The Crucial Role of a Business Plan
The e-book commences with a deep dive into the significance of a business plan in the entrepreneurial journey. Whether you're at the inception stage or looking to attract investment, a well-constructed business plan is your roadmap to success. This chapter lays the foundation for understanding why a business plan is more than just a document—it's a strategic tool that aligns your aspirations with sound business reasoning.
Chapter 2: Comprehensive and Well-Thought-Out
Building a business plan goes beyond mere documentation; it requires a comprehensive and well-thought-out approach. This chapter delves into the key components that make a business plan effective. From market analysis to financial projections, every aspect is explored to ensure your business plan is not only thorough but also resonates with clarity and purpose.
Chapter 3: Crafting Sound Business Reasons
Success hinges on sound business reasons, and your business plan is the platform to articulate them effectively. This chapter explores the art of presenting compelling reasons for your business's existence, growth, and potential success. By understanding how to convey your ideas with conviction, you'll be better equipped to engage potential investors and stakeholders.
Chapter 4: Your One-Stop Source for Business Info
The e-book positions itself as your ultimate source for all things related to business planning. Whether you're a novice or a seasoned entrepreneur, you'll find valuable insights and practical tips to enhance your business planning skills. This chapter sets the tone for a comprehensive learning experience that empowers you to navigate the intricacies of the business planning process.
Conclusion:
"Better Business Planning" is more than just an e-book; it's your partner in the journey toward business success. From understanding the crucial role of a business plan to crafting sound business reasons, this guide is designed to equip you with the knowledge and skills needed to create a compelling roadmap for your venture. As you delve into the comprehensive and well-thought-out strategies outlined in this e-book, remember that a successful business plan is not just a document; it's a strategic tool that propels your vision toward tangible success. Get ready to transform your business planning approach—your journey begins here.
This document provides guidance for developing a business plan tailored to different audiences and types of businesses. For raising capital from banks or investors, the plan should include details on funds needed, their intended use, and projected growth, returns, and exit strategies. The operational plan section advises on including details specific to the business type, such as production levels, costs, pricing, quality control, inventory management, and location criteria. Developing the marketing plan involves analyzing the target market and competition, and outlining promotional strategies. Financial projections should include profit/loss, cash flow, and balance sheet statements for 5 years. Customizing the generic plan with company-specific information is key to its effectiveness.
The document discusses key concepts related to developing a business model for a startup home-based business. It defines terms like business model, value proposition, startup costs, and marketing strategy. It explains that a business model identifies how a company will make a profit by selling products/services to target customers. The business model covers costs, marketing, competition and financial projections. Successful business models fulfill customer needs at a competitive price and sustainable cost.
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How to sell your business
1. Preparing the business for sale
When should preparation for the sale of the business begin?
How can the business be made attractive to buyers?
What has to be done from an operations standpoint?
What can be done to make financial statements look good?
When should the employees be told about the sale
of the business?
What should be done to alleviate the concerns of the
key employees?
What should be done in the event of a possible management
buy-out (MBO)?
What are some common mistakes owners make when preparing
their business for sale?
1 2 3Approach Due diligence
Negotiations
and closing
Planning
Timing of
the sale
2. Oaklins – Selling your business: Answers to key questions 13
WHEN SHOULD PREPARATION FOR THE SALE OF THE BUSINESS
BEGIN?
Ideally, preparations for selling the business should get underway at least two to
three years before going to market. This is because many of the initiatives involved
will take time to implement. Even if the owner is not planning to sell their business
in the near future, adequate planning and preparation are essential in case they
receive an unsolicited offer or face a sudden change in circumstances (such as
health problems).
3. HOW CAN THE BUSINESS BE MADE ATTRACTIVE TO BUYERS?
Unique sale arguments should be developed during preparation. These usually
have more to do with the competitive advantage and intangible value the business
offers than its physical assets. The assets on the balance sheet are of secondary
importance, particularly for service companies. Buyers are typically interested in
the unique attributes of the seller’s product and service offerings, customer base
and the strength of its management team. The seller should therefore focus on the
following points to make the business more attractive when putting it on the market:
– Promote the business name and its brands. In many cases, awareness of your
business can be raised by advertising in trade magazines, newspapers and other
public information channels.
– Foster customer loyalty and diversification. Demonstrating a loyal and diversified
customer base increases the chance of a high value sale.
– Ensure a strong and committed management team is in place. Ideally, the owner
should endeavor to become redundant so that the business can run well without
him. It is also important to demonstrate that the business is not dependent on a
handful of key employees, and that a strong successor has been identified for
each key management position.
Buyers will assess the “transition risk” associated with the business, i.e. the risk
that the company will lose major customers, key employees or other elements of
value shortly after the transaction. It is important to demonstrate that things like
customer retention plans and management succession plans actually exist. Ideally,
buyers should be able to see that the business has a sustainable competitive
advantage which can be readily transitioned following the sale transaction. Finally,
it is important to investigate why the buyers wish to purchase the company so that
buyer-specific arguments can be prepared.
Preparing the business for sale
4. Oaklins – Selling your business: Answers to key questions 15
WHAT HAS TO BE DONE FROM AN OPERATIONS STANDPOINT?
The owner should ideally strive to hand over an efficient, well-run operation that
enables a buyer to readily integrate the business into their existing operations.
Some initiatives that may be worth undertaking are the following:
– Providing transparent annual financial statements and financial information,
e.g. on the basis of reporting systems.
– Clear separation of the business into parts which are for sale and those
which are not.
– Reviewing the product and service offerings. If there are certain product lines
that are unprofitable, it may be best to eliminate them.
– Ensuring that the facilities are clean and presentable. This may include minor
repairs, painting, etc.
– Installing state-of-the-art IT systems based on industry-specific standard
solutions (avoid in-house developments).
– Revising inventories. Removing those which are slow-moving or obsolete.
Inventories should be properly organized so that they appear well managed.
– Ensuring that ongoing research and development initiatives are well documented,
including costs and benefits associated with planned developments.
– Disclosure and solutions for possible “skeletons in the closet”, e.g. current
or imminent court proceedings, outstanding taxes, etc.
– Ensuring that the website provides an attractive (but realistic) image of the
business. The website is one of the first things a potential buyer will look at
and it will influence their initial perceived value of the business and overall
level of interest.
5. Finally, it is important to ensure that the administrative matters of the business are
in order prior to soliciting buyers. This includes up-to-date books and corporate
records, lease contracts, policy manuals, customer and supplier agreements,
employment contracts, government filings, insurance coverage, banking agreements
and similar types of documentation. If all the administrative documents are complete
and available, this reduces delays and testifies that a business is well organized and
well structured.
WHAT CAN BE DONE TO MAKE FINANCIAL STATEMENTS LOOK GOOD?
Buyers like to see revenue and profit growth in the years leading up to the sale.
Revenue growth might be accomplished by accelerating the sale of products and
services to customers and by putting short-term sales initiatives into place. However,
accounting standards governing revenue recognition must be considered.
If expenses in the years leading up to the sale are carefully controlled, this can
impact positively on profitability. However, it is important to be aware that most
buyers will be on the lookout for reductions in operating expenditures that are
required to support the long-term viability and growth of the business. For example,
in the years leading up to the sale, business owners sometimes reduce costs that
may not offer an immediate payback, such as advertising, R&D and equipment
maintenance. When a buyer discovers that expenses such as these have been
artificially reduced, they usually reduce the purchase price accordingly. This impairs
their own negotiation position, especially in cases where a high correlation with the
long-term operational performance can be shown.
However, owners of privately-held companies sometimes incur costs that are not
essential to the operation of their business, and these can be reduced or eliminated
with little or no unfavorable impact on the business’ long-term operating results. This
might include personal cars, trips or other discretionary expenses that are charged
through the business.
In the years prior to the sale, owners might want to consider capitalizing certain
expenditures rather than expensing them. Most privately-held companies are
operated with the aim of minimizing tax. This explains why purchases of capital
assets with relatively low monetary values are often expensed.
Preparing the business for sale
6. Oaklins – Selling your business: Answers to key questions 17
However, by capitalizing and depreciating some of these items (where justified), it
may be possible to increase the purchase price of the company, particularly where a
buyer relies on a “multiple of EBITDA” as one of its primary valuation methodologies.
Buyers also like to see a clean balance sheet. This starts with removing any
redundant assets. Redundant assets are those not required in the ongoing
operations of the business, such as marketable securities and vacant land. Potential
buyers are not usually willing to acquire non-operational activities and assets or to
pay a reasonable price for them.
Careful attention should be paid to working capital management. The lower the
business’ working capital requirements are, the more cash will be generated to
provide the buyer with a return on their investment, which in turn can lead to a
higher purchase price. Furthermore, the owner will probably have to negotiate a
target working capital amount at the closing date of the transaction. The purchase
price will be adjusted upward or downward for working capital that exceeds or falls
short of the target. To improve their ability to negotiate a lower working capital target
(and enjoy more upside potential), the owner will need to demonstrate that their
business has operated with modest working capital levels in the years leading up to
the sale. As a result, the owner needs to actively manage the working capital several
years before they sell as the results take time to materialize.
Finally, the owner should be conscious of under-accrued liabilities in their business,
such as employee vacation pay, pension obligations, post-retirement benefits and
product warranties. Buyers will closely scrutinize liabilities that will be assumed at
the closing date. Any such previously unidentified liabilities can have a negative
impact on the purchase price.
7. WHEN SHOULD THE EMPLOYEES BE TOLD ABOUT THE SALE OF
THE BUSINESS?
The answer to this question depends greatly on the culture of the business. In most
cases it is necessary to tell a select group of employees, such as the Chief Financial
Officer, about the possibility of a sale before going to market. This is because such
individuals will need to be involved in gathering information for prospective buyers.
Once a potential buyer has expressed interest, it is usually necessary to tell other
key employees within the business (i.e. people in the management team) about
the process. As previously stated, a strong management team is crucial to the sale
process and in reaching the highest possible purchase price. It is particularly helpful
when key employees attend management presentations with potential buyers to
show that the business has a strong management team. If key employees are not
advised of the pending sale of the business until a potential buyer begins their due
diligence investigation, the owner runs the risk of jeopardizing their negotiating
position if their employees react with concern or leave the business prior to the
transaction.
WHAT SHOULD BE DONE TO ALLEVIATE THE CONCERNS OF THE
KEY EMPLOYEES?
It is only natural for employees to feel nervous when they find out that the business
is for sale as they may be concerned about the possible changes under a new buyer,
or worse, losing their job. Therefore, it is important to keep key employees informed
of what is happening and to address any concerns they may have.
Some owners implement an employee share ownership plan (ESOP) to help align
employee interests with their own. While ESOPs can be a powerful mechanism, they
should be used with caution. It is much easier to implement an ESOP than to make
changes once it is in place.
A special bonus for a successful sale is an easier way to align employee interests
with the owner’s interests. This also serves to reward them for all the additional work
that is involved in the sale process.
Preparing the business for sale
8. Oaklins – Selling your business: Answers to key questions 19
WHAT SHOULD BE DONE IN THE EVENT OF A POSSIBLE MANAGEMENT
BUY-OUT (MBO)?
A difficult situation can occur if management itself shows interest in buying the
business. This has the following two drawbacks for the seller:
– Management undermines the selling effort and process to favor its own
takeover plans
– The attainable purchase price and the economic conditions in an MBO are
usually less attractive from a seller’s perspective compared to a transaction
with a third party
Corresponding expectations from management must be avoided to prevent such
situations. However, if there is evidence of a possible MBO, this should be discussed
during the preparation phase of the sale. An M&A advisor can analyze whether and
under what conditions an MBO may be financially viable for management and the
company. This advice will help to avoid false expectations on both sides.
Despite potential difficulties, an MBO remains a possible succession option.
If there are no buyers or the sale process is a failure, it may even be the best
remaining option.
9. WHAT ARE SOME COMMON MISTAKES OWNERS MAKE WHEN
PREPARING THEIR BUSINESS FOR SALE?
– Underestimating the effort needed for the preparation of the sale
– Over-investing in capital assets in the years prior to a sale rather than paying
down debt
– Underestimating the importance of a clean and lean balance sheet
– Not splitting operating and non-operating assets in the accounts
– Posting private spending on business accounts
– Poor communication and missing incentives for key employees
– Lack of tax and estate planning
– Not recognizing potential MBO aspirations
Preparing the business for sale
10. 41Oaklins – Selling your business: Answers to key questions 41Oaklins – Selling your business: Answers to key questions
11. About Oaklins
Deep local roots,
global commitment
Oaklins brings you opportunities from
across the world and we meet you with
our expertise wherever you are
Oaklins is the world’s most experienced mid-market M&A advisor, with 800
professionals globally and dedicated industry teams in 40 countries worldwide.
We have closed over 1,500 transactions in the past five years.
To find your local contact, please see:
www.oaklins.com/locations.html
12. Oaklins – Selling your business: Answers to key questions 43
Relationships
foster success
We underpin every relationship with a commitment to integrity,
and our clients trust that we put our responsibility to them first.
Because of this, our partnerships flourish and go further,
providing long-term value beyond the closing of every deal.