Tip #1: Increase Cash Flow.
Cash flow reflects the health of your business – now and into the future. If buyers believe they need to inject cash into a business after acquiring it, they’ll lower the amount of their offer. Or, worse, it can be a deal breaker.
Positive cash flow indicates your company has more than enough to cover monthly costs and overhead. If you analyze obstacles to cash flow you may find most are within your power to fix:
- Increase Efficiency – a 1% increase in efficiency results in a 5% increase in profits.
- Cut Back Overhead – eliminating 5% of your overhead costs can double net profits.
- Improve Customer Billing Practices – getting customers to pay you sooner increases cash flow.
Believe it or not, studies show making the effort to increase your cash flow can quickly raise your profitability by as much as 35%.
Stay tuned for Tip #2.
