To most CEOs, running a business at optimal profitability sounds a little far-fetched.
However, to achieve optimal profitability means your business will be prepared for sale whenever the opportunity presents itself.
And someday, your business will eventually be sold.
In this episode of B2B Tech Talk, guest host James Carbary of Sweet Fish Media sits down with a business advisor to CEOs and partner at A&G Advisory Services
, Scott Goemmel
Live from Ingram Micro’s ONE event
, the two discuss:
- Annuity and business valuation
- How A&G helps businesses run at optimal profitability
- How to build a plan to reach optimal profitability
The annuity and business valuation business
The story of Scott diving into annuity and business valuations is a familiar one.
He was the owner of a tech company for over 10 years and finally felt it was time to sell. Being involved in peer communities, such as the ones Ingram Micro offers,
helped Scott determine the best way to go about valuating his company and creating an annuity plan.
In fact, Scott enjoyed the reciprocity of these communities so much, he decided to help his peers with their business valuations professionally.
In doing so, he helps sellers move their business mix to where the annuity is the predominant source of revenue and margin.
"The timing of the cash flow coming in is a significant issue." - Scott Goemmel
A&G helps businesses run at optimal profitability
A&G Advisory Services helps CEOs achieve optimal profitability because…
"We are a lifestyle business." - Scott Goemmel
- It helps owners run their business as if they’re always prepared to sell
- It can be difficult for CEOs to take emotions off the table when it comes to making hard decisions about personnel
- At some point, the business will sell, and it’s better to be prepared than caught off guard
- It can be hard to see the gap between the reality of business operations and where optimal profitability lies
- Many CEOs don’t have experience with selling and need to know all their options
Building a plan for optimal profitability
The most important factor to keep in mind when you’re building a plan for optimal profitability is time. Scott discloses that many of his clients think they have more time to meet objectives than they really do.
Scott also suggests tackling all your objectives in chunks. You won’t be able to reach optimal profitability all at once. Although, it’s essential to have an accurate timeline and meet the coinciding goals on schedule.