In this week’s blog, we share more of the best practices from Ceibass CEO Tom Fochtman’s presentation entitled How to Enhance the Value of Your Business Enterprise, given at Jim Huston’s outstanding Brainstorming Meeting in Jackson Hole, Wyoming January 12, 2018.
The theme of the meeting was How to Build and Exit a Great Company. Here’s more from Tom’s presentation on what to look for to enhance the value of your business:
Quality of Accounts
Contracts must be current; renewed.
- Contract files must be in order. Every job folder should look the same and information readily available and understood.
- Illustrate a history of getting price increases.
- Quality clients demonstrate a history of investing in their properties to increase value and ROI.
- Demonstrate the history of enhancement revenue – this should be broken out on your financials and should be your high margin work.
Maintain proper employee records.
- I-9’s and E-verify need to be in place and organized.
- There have been harsh fines for violations: A large commercial company was fined $95 million last October for knowingly hiring illegal aliens.
Keep a clean facility, yard & shop! A sloppy office and yard raise a red flag for the buyer. They will be cautious and assume your accounting is sloppy as well.
- When you sell your home a good realtor tells you to “stage” your home. You will get more for your business if you keep your facility clean.
- This also breeds quality employees who care for equipment and property.
What makes a good company great?
- They have and work their unique value proposition.
- They are involved in and known for their involvement in their industry associations.
- They give back to their communities.
- They have written press releases and submit them to local and national publications to gain peer notoriety and inform their audience.
- They enter award competitions for quality workmanship and win awards.
- They have an informative newsletter.
- Their image and what it connotes is consistent with who they are.
- Their fleet looks great. They have uniformed employees. People are on the same page.
- They have a Customer Advisory Committee for feedback and insights.