Take a Break!
Know the ‘Why’ Behind Your Profitability WHY UNDERSTANDING YOUR BUSINESS’S PROFITABILITY IS KEY TO SELLING
WORD SEARCH
Doing your due diligence is an incredibly important part of selling your business. In order to make your business attractive to buyers, you have to compile a good deal of information about your business, including detailed reports of your revenue, cash flow projections, and more. However, in completing your due diligence, don’t forget to do a thorough assessment of your business’s profitability. Now, you might think of profitability as a fairly straightforward concept. So long as the amount of revenue you generate from selling your products and services exceeds the expenses associated with selling them, your business is profitable — right? Well, yes, but digging a little deeper into exactly why your business is profitable can be just as important as the profitability itself.
BLOOM CINCO COMIC DERBY
EMERALD GEMINI GRADUATION LILY
MEMORIAL MOTHER PARANORMAL VETERANS
SUDOKU (SOLUTION ON PG. 4)
Profitability assessments evaluate the costs of your business and the sources of your profits. A few examples of profitability sources include the following:
• Customers: Do you have a loyal customer base that in turn decreases the relative cost of your marketing campaigns? • Geography: Is your business’s location a major factor in reaching both new and loyal customers? • Product or Service Lines: How does each product or service line in your business contribute to overall profitability? • Sales Teams: How often does your sales team discover new leads and follow up with existing ones? Each of these factors can have a profound and unique impact on your profitability. So, to fully understand them, start by getting familiar with the raw data of your business’s profitability. Then, analyze that data to get an idea of what needs to be done to maintain and maximize the profitability of your business. Finally, put it all together in an easy-to-understand report for buyers to ensure the future profitability of the business.
And in all of this, remember to enlist the help of a seasoned expert in the world of brokering business sales! I’ll be able to answer any questions you might have.
3
800.805.9575
WWW.TERRYMONROE.COM
Made with FlippingBook - Online Brochure Maker