cnsultants, Author at General Article Directory

Preparing Your Business For Sale

cnsultants — Sun, 22 Apr 2012 08:53:14 +0000

Your business is your baby. It was fragile in the beginning and grew to develop into a significant and valuable company. When considering selling your business it is imperative you present it to the market in the best possible light to ensure you receive the best value for all your efforts.

A thorough preparation can mean the difference between obtaining a satisfactory price to no sale at all: it is in your hands.

Even if you are not planning to sell today, a ‘Preparation for Sale Programmer’ can improve the operations of your business. It will also have your business ‘ready for sale’ in the event a potential buyer comes your way.

It is common to find business owners believe they are well prepared for their retirement relying on their good profits and property values. As a result they can be found to have unrealistic beliefs about the price they can achieve for their business and the length of time it takes to sell.

Usually they have not done the work required to have the company ready for sale. In difficult economic climates buyers become especially demanding.

When offering a business for sale it is essential to understand why companies buy, what buyers are looking for and, in this context, what are the drivers that add value to your business.

How Illumina Business Consulting can help

We will review your business from the perspective of the buyer with the following processes:

Formulate the strengths, weaknesses, opportunities and threats of your company
Identify a realistic sale price at initial stage of the process
Source the value drivers of your business and assist you in developing a plan to address areas for improvement
Assisting you over time to improve the value of the business
Deal in advance the issues that can delay the selling process which could lead to a reduction in the price or worse a qualified buyer to decide not to buy

Note that your business will be running as per usual while the ‘preparation for sale’ is taking place.

A thorough preparation can mean the difference between obtaining a satisfactory price to no sale at all: it is in your hands.

Usually they have not done the work required to have the company ready for sale. In difficult economic climates buyers become especially demanding.

When offering a business for sale it is essential to understand why companies buy, what buyers are looking for and, in this context, what are the drivers that add value to your business.

How Illumina Business Consulting can help

We will review your business from the perspective of the buyer with the following processes:

How we can help!

Our objective is to help you realise your goals and ambitions. At Illumina Business Consulting we are experts in building successful growth strategies that ensure you a stronger, profitable, more valuable business. IT Consulting Sydney, Training Sydney.

Author Name: Tony Evans specializes in writing in all areas of business.

Address: PO Box 647 Edgecliff, Sydney NSW 2027 Australia

The post Preparing Your Business For Sale appeared first on General Article Directory.

How To Price Your Product Or Service

cnsultants — Sun, 15 Apr 2012 09:21:58 +0000

For most companies determining the price of their products and/or services is more of a guesstimate then a structured procedure. Many assess their pricing by trying to be lower than their competitors and thus underestimate the cost of running the organization making it difficult to gain a reasonable profit.
This is a dangerous strategy and can make your business constantly walk a tight rope. A far better approach is to assess all aspects of your organization, industry and niche to ensure that your costs are covered and your profits are in line with your expectations.
Overheads Paid
When assessing your pricing it is absolutely critical that all your costs are accounted for. This includes the lease, salaries, utilities, insurance, equipment, etc. It is also important to cover the future costs such as interest on loans and depreciation on infrastructure.
Know Your Market
Next is to assess where your company lies in the market against your competitors and your industry. Do not just compare prices. There are many factors that can differentiate you such as location, customer service response, quality of product, etc.
Response Pricing
Lowering your price because your competitors decided to do the same is not a viable long term strategy. This can cause a price war and can leave you and your industry vulnerable to many future unforeseen economic issues that are out of your control. It is important to note that if customers perceive your only competitive aspect is in your pricing then they may decide your company is not necessarily the best option.
Premium Pricing
Alternatively it is important not to overprice your product and/or service. Instead, identify your point of difference and factor this into your price. Customers will willingly purchase a higher price product from an organization if it portrays a high level of quality and service.
Negotiation
Leave a buffer in your price so that you can be open to negotiation. If you are willing to negotiate you are more likely to gain favour with the prospective client. However ensure you have a definite price floor before you begin negotiating.
Bulk Purchase Discounts
It is always a good idea to give discounts when customers purchase in larger volumes than the norm.
Peak Pricing
Another strategy is to charge extra for special requests such as faster delivery, last minute changes, etc.
Periodic Repricing
Overtime it is necessary to raise prices to keep in line with inflation and other supplier price increases. Just be aware to research thoroughly before making changes as they are difficult to reverse once implemented. Also make changes progressively as clients never appreciate sudden increase in prices.
The best way to make changes in your pricing is to seek professional advice. There are many business tools to help you gain a clearer insight into your pricing strategy. Management Consulting Sydney, Marketing Consultant Sydney.
At Illumina Business Consulting we are experts in building successful growth strategies that ensure you a stronger, profitable, more valuable business. Contact us at info at illuminaconsulting.com.au for a free, no obligation consultation.
Author Name: Alicia Grant specializes in writing in all areas of business.
Address: PO Box 647 Edgecliff, Sydney NSW 2027 Australia

The post How To Price Your Product Or Service appeared first on General Article Directory.

How To Maintain The Cash Flow Of Your Business

cnsultants — Wed, 21 Mar 2012 06:00:32 +0000

Cash flow can be said to be backbone of any company. It does not matter whether you are making thousands of widgets a year or selling vacuum cleaners to households, if you are held back by payments from clients, then you are unable to pay your suppliers for the next batch of products to sell.

Many of the following tips are well known but are often forgotten during the daily priorities of running a business; however they could help you improve your cash flow.

Early Payment Discounts For Customers

Giving discounts to your customers for payments upfront. Some companies will have a discount period of a month that customers must pay within to receive the discount. This is easier to impose than a penalty for late payment and is more favorable to customers too.

Extend Credit With Suppliers

Take as long as you can to pay your bills without incurring a late fee. If a supplier gives 60 days, then take the full 60. Pay your regular suppliers before others; early payments can generate goodwill and improve the likelihood of obtaining credit. However don’t be too aggressive in taking the extended credit. Frustrated suppliers will stop giving you credit and demand payment with when orders are placed causing you to have a worse cash flow position than before.

Invest Wisely Excess Funds

Invest surplus funds in high-interest bearing accounts or other alternative investment that can contribute further to your business. There is no benefit having money sitting in the company bank account. However ensure you have enough liquid funds should then need arise.

Plan Well For Cash Flow Needs

Keep up to date with regular cash flow forecasts. Know when the funds should be received, and when you will have to make payments. This will assist you with the inevitable delays.

Raise Sales Invoices Promptly

Send invoices out as soon as practical. This should be top priority for the daily work schedule. Once issued, make sure you follow up the day after the invoice is overdue. A polite phone call or a second email can assist things along.

Payments Made Electronically

The more options you give customers to pay you the more likely they will. Emphasise your preferred payment type and if your bank gives you permission – Direct Debit.

Request Progress Payments When required

Split payments for longer projects, so that you do not have to wait until the end of a job to be paid. This gives you the security of receiving some payments as well as assisting in your cash flow.

Monitor Stock Movements

Sell slow moving products at a discount, if necessary. These products absorb cash and wastes valuable space in the warehouse. Focus on the better selling, higher turnover items.

Make Payments In Order Of Priority

When things get tight, prioritise your payments . Call all your suppliers and negotiate extended periods or defer your payments. Pay your most important debts first.

Pay Commissions To Sales Team When Invoices Are Paid

Ensure you only pay commissions to your sales team when invoices are actually paid by customers. It also is a good reason for the sales person to have a reason to contact the client again and perhaps make another sale. Business Consultant Sydney, Consulting Sydney.

At Illumina we are experts in building successful growth strategies that ensure you a stronger, profitable, more valuable business. Contact us on 02 9660 8557 or info@illuminaconsulting.com.au for a free, no obligation consultation.

Author Name: David Zaoui

Address: PO Box 647 Edgecliff, Sydney NSW 2027

The post How To Maintain The Cash Flow Of Your Business appeared first on General Article Directory.