We recently analyzed which of our peer group members have sold their businesses for high value—we were thrilled to find that most were companies that we also directly coached.

That was a proud moment, and raises the question: What were some of the areas we focused on during coaching?

It was a mix of short- and long-term strategies, some obvious and some not.

Keep in mind: The strategies that make your company attractive to a buyer are the same ones that make it more prosperous, and often less stressful to run today.

Don’t wait until you’re ready to sell—start thinking about the following now.

1. Recurring Revenue: Lowers Stress and Evens the Bumps

For example, when I first started coaching Chris Vedrani (Planted Earth) and Bob Drost (Drost Landscape), I told both that they needed to rely less on design-build.

Every time we met, I repeated my mandate to strengthen and grow the maintenance divisions. They probably got sick of hearing that.

But grow they did; and Drost took on many new services including tree care. They were happy campers when they sold.

Some tips to think about:

• Grow full-service maintenance contracts, rather than one-off services.
• Develop personnel to proactively sell enhancements, upgrades, and improvements to current clients.
• Add seasonal programs, like snow, irrigation inspections, or holiday décor that keep clients engaged year-round. (These can all turn into their own divisions as well.)
• Front and center: Ensure maintenance clients and department needs are not an afterthought.

Pro Tip: Aim for at least 55% recurring service so you can handle the bumps in the economy, then increase that to 75% for real value building.

2. Profit Improvement: The Core Driver of Value

Profitability is the engine of business value. If your business delivers strong, above-average margins, you’ll command a higher multiple and keep more of what you earn.

There’s a lot you can do here—let’s break it into two main opportunities:

1. Drive your team to achieve and beat your budgets. Use profit sharing, lean thinking, and ongoing variance discussions in every department to uncover profit opportunities.

2. Benchmark your firm against others (and against the best) in the industry, so you can uncover blind spots and opportunities for a totally different approach.

Back to Bob Drost—we did both, and over time it raised GPM and NP, and this drove total revenue as well.

3. Organizing Leadership for Growth

If your business depends on you for sales, client relationships, or daily operations, it has less transferable value—and keeps you stuck in the weeds.

You also don’t want to be the smartest person on your team; this will hold your company back from reaching its full potential.

Moreover, if you have a key position that is filled with a problem leader, it stops your team from gelling at a higher level. (We see this quite often—every company has a blind spot it needs to address.)

When you address these issues and farm a great team, you increase both the salability of your business and your own freedom.

Your Challenge: Level Up Your Team and Your Culture

When you build a leadership team that is leveled up, and a middle management that is well structured and well trained, you are ready for scaling.

But culture is the glue that makes all of this stick.

A motivated team of engaged employees gives your future buyer the confidence that your company will continue thriving after you exit.

A motivated team also makes it more enjoyable for you as owner!

That’s why we recommend you invest in developing a team of leaders who think and act with an ownership mentality.

When you do, watch out world!

Regards, Jeffrey Scott

P.S. Now is the time to start planning for the future.

Set up a meeting with us to explore how our peer groups and consulting/coaching programs will help you speed up your journey and build an organization that will make you and your team proud!