Metrics to measure your small business exit strategy
How could you benefit from having an exit dashboard?
- Can you monitor your business metrics that matter and share them with a prospective buyer?
Customer retention numbers - New, retained, upsell, reduction and churn
Average Order Value AOV
Customer Lifetime Value LTV
Customer Acquisition Cost CAC
Average Customer Lifetime
Yearly, Quarterly, Monthly, Daily sales numbers
Period over period increase or decrease
Gross margin
Profit margin
- If you have business metrics to show, are they automated?
Is data pulled to a central storage automatically and regularly?
Do you have a dashboard to display the metrics that matter?
Can your metrics be seen at the line item level and aggregated to all other levels?
Financial documents are good for high level, but looking into segments can be very informative.
This can start as small as just your payment processor data for analysis and trending and grow to include:
Customer retention - New, Retained, Upgrade, Downgrade and Churn
Segmentation for marketing, pricing, profit etc.
- Where you told by a business broker that your business was unsellable as is?
If your business has a lot of transactions, like 100s thousands transactions per year, then pulling data together into a central place and creating automated processes to refresh a dashboard can help you get the business ready to sell as well as be a source of information to a prospective buyer.
For small businesses, this may run within the free tier allotment of Google BigQuery.
- Do you have a need for confidential data analytics?
No interferance or disruption to current business operations.
Financial statements are good for high level analysis, details are needed for deeper insights.
Insights to discover unrealized potential both in the business and in the strategic acquisition targets that you will pursue.
Contact me on LinkedIn and schedule a free consultation to discuss your situation.