REVEALED : THE WORSE NUMBER IN BUSINESS.

 

 

Do you know the worse number in business?

I’ll reveal it shortly……but let me explain how I started to think about this vital point.

It’s important to consider this question if you want to maximize your exit and achieve the payout you deserve for all your years of hard work, risk and innovation.

This week has been a ‘difficult’ week for a company called Imagination Technologies….that’s putting it mildly!

At the beginning of the week it was reported that Apple were ‘in talks’ with Imagination Technologies [a UK chip technology company] with the view to a potential takeover.

The shares naturally rose by 20% on Tuesday but all the gains were lost once Apple released a statement saying that weren’t buying…..a rollercoaster day for Imagination Technologies!

Imagination Technologies are experiencing ‘hard times’.

Last month their longtime chief executive [Sir Hossein Yassaie] left and they announced a wide ranging restructuring while reporting worsening losses and declining revenues.

It further announced last week additional job losses, more planned cost savings and its intention to sell a loss making digital radio business.

The talks came at a time of increased appetite for dealmaking at Apple.

Tim Cook, the chief executive, told the company’s shareholder meeting last month that they were looking to complete more acquisitions particularly in the current times where equity values were falling.

Imagination Technologies is heavily exposed to Apple.

Its graphics chip is a key component in Apple mobile devices. They have struggled to adapt to a changing market in which sales of high-end smartphones, including Apple’s iPhones, have slowed.

Apples owns 8.5% of Imagination.

Imagination Technologies are vulnerable….I don’t know exactly how reliant on Apple they are but it raises a critical point.

The worse number in business is…ONE!

If you want to maximize your exit and achieve a large payout for all years of endeavor, you must review these 3 key questions:

  1. 1.    Are you reliant on 1 customer?

 

I hope not….if you are, you are vulnerable and exposed.

You need, as a matter of urgency, to attract more customers and reduce the reliance on your one customer.

 

  1. 2.    Are you reliant on 1 person?

 

This could be you or 1 member of your team…..all the knowledge and power lies with that person. I hope not as you are equally vulnerable and exposed. What happens if they get sick etc…?

You need, as a matter of urgency, to delegate and create a genuine team.

 

  1. 3.    Are you reliant on 1 supplier?

 

I hope not….if you are, likewise, you are vulnerable and exposed.

You need, as a matter of urgency, to seek other suppliers.

 

If the answer is yes to any of the 3 questions, the value of your business is being significantly reduced.

The worse number is business is…ONE!

It is important you spread and diversify risk….you mustn’t have ‘all your eggs in one basket!’

Once you achieve the diversification and are no longer reliant on ‘one’, you will be in a position to maximize your exit and achieve a big payout.

If you want to discover more ‘secrets’ of how to maximize your business exit go to http://www.maximizeyourexit.com/sell-smart-net-what-youre-worth

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