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value in your brand

There is Value in Your Brand

Every year, Forbes releases a list of the world’s most valuable brands for the year. Included companies in this list are: Apple, Disney, Coca-Cola, and others. This list contains the most polished brands, the ones that consumers believe to be the best and have the greatest brand value. Yes, these are large companies but small and middle market companies can learn a lot from these.

First, take a look at the perception of these larger companies. Consider what you immediately think of when you read the company name or see the logo. Does your company have a positive perception in the marketplace? If the answer is no, you need to find a way to change that. Not only is perception a huge factor to your customers and potential customers, but also to businesses that look to make deals with yours and for people who may be interested in purchasing your business. Always remember the impact of your reputation in the marketplace. Are you respected in the community? Do you have great relationships with your client base? Do your clients trust you? Each of these factor into the overall value of your business.

The companies on Forbes’ list are creative and innovative in their respected marketplace. They found a way to differentiate their company from their competitors to stand out. This is another way to boost the value of your company. When buyers are looking for potential target companies for purchase, they are looking for that extra marketable piece that adds value to the transaction. For instance, let’s say a buyer owns a successful website building company and is looking to buy a social media company. Many social media consultants and companies boast the same basic services. However, if one excels at providing SEO services or CRM services – that particular company made itself more valuable then its competitors and is more appealing to buyers.

Are you are looking to exit your business but just now beginning to think about these things? You may have some work to do to create a polished business that will interest sellers. If you are a new business owner looking to retire in 10-20 years, now is the perfect time for you! You should be thinking about the overall value and focus on creating a business that is attractive to potential buyers from day one. It is never too early to start thinking about an exit plan – it will pay off in the long run.

Our team can help you prepare your business for a sale. Reach out for a no-cost consultation with our LBA Haynes Strand Capital Advisors team.

Creating A Strategic Plan For 2016

As the year end approaches, now is the perfect time to think about your strategic plans and growth strategies for 2016.  Your growth strategies and strategic plan should be focused on the upcoming year as well as three to five years down the road.  You have to understand exactly where your business is and have a vision of where you want your company to be in the future.  If you don’t have a plan that looks toward the future, you risk not ever growing your business.

One of the most important places to start is to build a budget.  As you are building your budget for 2016, and for your long term (3-5 year) strategy – think about the following questions:

  • Where do you want to be?
  • What size do you want to be?
  • Do you want to sell your company?

All of these questions should be asked on a yearly basis as you look three to five years into the future.  The answers to these questions will determine the day to day operational decisions you make.  If you are going to sell your company in two years, then maximizing current profitability is key – in order to show potential of the business.  If you are going to sell in 5 years and you need to grow significantly, then you may consider doing an acquisition.

Another item to think about is if you have the resources who can help you effectively sell your business or help you complete an acquisition?  Do you know how to set your company up to maximize the value you receive through a sale?  Teaming with a certified public accountant can help you with this. CPAs are notorious for having a wealth of resources and contacts that can help you build a network of advisors.  Whether it be an attorney, a wealth management advisor, a capital advisor, a bank, or SBA lender – CPAs can put you in touch with the right people.

Creating a strategic plan is essential to your business.  It is something that can help you identify the best opportunities for growth, understand potential financial results, and provide you with a detailed and focused plan that you can communicate to your team.

If you would like to learn more about how LBA Haynes Strand can help you achieve your long term goals, click the button below for a no-cost consultation!