The business owner had inherited the business from his father and he had kept the business much like his dad ran the business. we contacted us to review his information and determine an exit plan for him.
While preparing his business enhancement plan for him, we discovered that the business was operating at around $2M in sales but only about $100k in net profit. Industry figures suggest it should around $400k . The business was operating at 1/4 of the expected profit. Further analysis showed his Cost of goods were over 70%. This business needed help.
The business operations were much like dad had them and the business has throwing money out because had not kept up with the times and many of the business practices were outdated, but the owner did not even know that.
The business owner is now actively implementing the Business Enhancement Plan and expects in the next 2-3 years to get up to industry numbers.
Bringing in a exit planning expert can help prepare your business to sell for the highest value by identifying critical points in the business that can be tweaked.