Fractional COO: Prepare for your Exit
Below are just a few reasons to bring on an Operational Expert to help you maximize the value of your business upon sale.
(Scroll down to the bottom for the kicker!)
Get your business ready to sale.
A fractional COO can help the business owner get their finances in order, update their marketing materials, and create a business plan. All of these things can make the business more attractive to potential buyers.
Improve the performance of your business.
A fractional COO can help the business owner improve their business’s performance in a number of ways, such as by developing new marketing strategies, improving efficiency, and reducing costs. This can make the business more valuable to potential buyers.
Valuation of your business is tied to two key performance and business factors:
- Net profit is a measure of the business’s value to potential buyers. The higher the net profit, the more valuable the business is to potential buyers.
- Businesses with strong growth potential are typically more valuable than businesses with limited growth potential.
Free up your time.
A fractional COO can take over some of the day-to-day responsibilities of the business owner, freeing up your time to focus on other things, such as preparing for the sale of your business.
To get expert advice.
A fractional COO can provide the business owner with expert advice on a variety of topics, such as business strategy, finance, and marketing. This can help you the business owner make better decisions and improve your chances of success.
Overall, hiring a fractional COO can be a valuable decision for a small business owner who plans to sell their business in a couple years. A fractional COO can help the business owner get their business ready for sale, improve its performance, free up their time, and get expert advice — generally, at a much lower cost than hiring a full-time COO.
Engaging an operational consultant to help you execute your Exit Plan can be very advantageous for a Business Owner. Whereas every hire you make, such as a COO, directly adds to payroll expense, your investment in a consultant, such as a fractional COO, is considered a one-off expense, and can be added back in the calculation of your company’s value to a new owner.
— Gregg Kunz, Principal Broker, Rocky Mountain Business Advisors, Inc.