You’re in your prime.
Your business is growing every day and you’re having a blast.
And sooner or later you find that you haven’t just grown, you've grown a lot. Your company is at a level where your dreams for it have come true.
Maybe it’s time to cash in on your enterprise.
There are some potential offers on the table. It's time to sell your business, take the long vacation that you deserve, and maybe retire.
All of this sounds good!
But there is one problem.
After you sell your company, the new owners keep calling you for advice or have questions about how you did certain things or pulled a particular report.
Your vacations are ruined and you end up spending a lot of time explaining things.
One way to avoid a post-sale nightmare is to implement processes and systems in your company long before you sell. Not only are you simplifying your business, but you are also making your business more sellable. That may increase the number of potential buyers and help you get a better sale price, too.
Here are some tips to increase your company’s valuation.
It shouldn’t surprise you that when you are trying to sell your business, you want to list the key performance metrics of your business. You need to have the right buyers so you sell your company for what it’s worth.
It’s like when you sell a house. You want to list all the bedrooms, bathrooms and extra perks that come with the property. They impact its value. It’s the same for your trucking company. Whatever you think your business is worth, you need to be able to quantify it. Key Performance Indicators, or KPIs, are a great way to give your potential buyer a specific reading on your business.
Setting up and keeping track of your KPIs can be a hassle if you are doing it manually using pen and paper. Implementing a simple logistics software would help you track all your key metrics and pull reports easily.
This goes without saying. If you own a trucking company, then you know that keeping track of paperwork is the bane of your existence. There are purchase orders, bills of lading, proofs of delivery, and on and on. Keeping a digital copy of your loads and transactions is going to help a lot, especially if the buyer wants to look up historical data or paperwork for any reason.
50% of trucking companies go out of business within the first 5 years. The main cause is shippers deciding to not extend their contracts with a carrier. When there is no constant supply of loads, there’s no other option but to close the doors.
For this reason, it’s vitally important to build diverse channels of business with multiple shippers. Remember the old saying, don’t put all your eggs in one basket.
It’s also important to keep your shippers happy, and knowing why they tend not to extend contracts can help you learn and adjust without going to the school of hard knocks. One of the main reasons for shippers to switch trucking companies is to get better visibility and accountability.
Implementing a technology where there is easy communication between you and your shippers will help maintain long-term relationships with shippers.
Your drivers play a big role in your trucking business. Make sure your drivers have a good track record. It’s also important that your drivers love working for you and your shippers. Your drivers could be the only company representatives your shippers meet in person! So make sure you take time to listen to your drivers and keep them happy.
FMCSA scores are often checked before a shipper does business with you. It is important to keep your FMCSA scores high and be compliant with all federal safety regulations. Higher FMCSA scores also help you get preferred loads and lower insurance rates - which means more profit per load.
When a buyer is considering buying your business, they often will check your legal history. It’s important to make sure there are no outstanding legal disputes. If there are any outstanding disputes, make every effort to take care of them. There should be disclosure regarding any legal matters that the buyer needs to know.
There are an estimated 500,000 plus trucking companies in the United States alone. That number is going up as logistics is expanding and growing at a faster rate than it did during the previous decade.
Having a clear mission statement and branding is vital in today’s market. You must know how you are different from any other trucking company out there.
Having a website is not enough. Implementing a simple freight management technology will differentiate you and your services among your competitors. Make sure you are visible and memorable. No one should confuse your brand and message with someone else.
Last but not least, implement automation.
Automate everything that is repeatable. Automate everything that’s costly. Automate everything that’s predictable.
Ideally, when you sell you want to hand over the keys to a self-driving business. The last thing you want to do is to spend the next several months teaching the buyer how to run your business. Imagine your buyer easily scaling your operations without reinventing the wheel. Now that’s a business worth buying!
Interested in finding out whether FreightPrint is a good solution for your business?Schedule a Call
When was the last time you have used a paper ticket while boarding an airplane? It's no secret that airline companies use QR codes to check passengers in.Read More