10 Ways to Future-Proof Your Business
Whether an owner intends to hold onto a security systems business long-term, pass it down through generations or sell it, a solid plan is critical to build the value necessary to accomplish those goals. Getting down and dirty to implement and execute today can have you smelling like a rose tomorrow.
All photos ©iStockphoto.com/Alexander Kirsch
9. Watch Attrition
Pay attention to your attrition. Why is it happening? The average attrition rate in our industry is about 6-7% per year for smaller companies. If you had 100 customers at the beginning of a year and 93 of those same customers at the end of that year, that’s a 7% gross attrition.
We’ve all heard it’s more costly when you lose an existing customer as opposed to adding a new one. Service is the key. If the service goes down, attrition goes up. This becomes a real warning flag for a potential buyer. High attrition means an unstable customer base.
10. Keep Up With Market Trends
Take time to study market trends. You’re directing your people through myriad changes. To stay ahead of your competition, you have to be on top of current trends. Whether it’s economy related, political, city or state regulation changes, product innovations, competition or industry happenings, it’s better to be ahead of the curve than trying to catch up.
Future-proofing is about mitigating or eliminating the impact future events may have on your business. Following the principles outlined in this article can help you make sure your company will prosper in spite of future trials and tribulations.
Dorsie Mosher and Steve Rubin are Principals at Davis Mergers and Acquisition Group.
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