"...keeping you great"

HEADLINES:

Run the Business As If You Are Going to Sell It Tomorrow -- this is one of the best pieces of advice Tim Danley, CEO of Des Moines-based wholesale commercial printer BCT Midwest , ever received. He noted this in an email to a friend whose 65 year old father wants to exit his business by age 70. The business has suffered the last two years and he wants to maximize profit over the next 5 years to maximize valuation.

Clean It Up -- Tim goes on to say to his friend "my suggestion would be for your Dad to go from top-to-bottom in the business and "clean it up". We did this several years ago (and it is ongoing work in progress) and it has been great for our business. The thought process is to be able to produce on demand anything a prospective buyer would ask for -- every lease, contract, etc. Have them in clean, organized binders with dividers for easy access. This can all be done digitally as well but the point is that it is all there whenever you need it -- and continuously updated. We even have the last three years tax returns ready (in a binder and digitally) at all times."

Uncovering Weaknesses -- Tim continues, "Obviously, this is something that shouldn't take a lot of extra time once it is set up and you might find that if it does, the problem may be your accounting/information system that isn't compiling this data well enough. This exercise alone forces you to do things better and more efficient. We actually found a lot of our weaknesses by doing this.

Update Company Look -- Tim adds, "Part of this process may also include updating the company's look. A fresh logo is always refreshing. This includes stationary, signage, all company forms, everything! I've acquired quit a few companies and when I see an old, unorganized operation (assuming I'm still interested after that), I immediately think discount.

More Pride and Price -- Tim concludes, "If you walk into an unorganized store that sells old dirty products, you are going to expect to pay less as opposed to walking into a clean, new, organized store - you expect to pay a premium. The goal for your Dad (and all of us) is to have a buyer someday walk into a fresh, clean, organized business and be willing to pay a premium. Most of this exercise costs peanuts compared to the premium it will produce in the future! We also found our employees responded to this with a little more pride and I think we attracted a better pool of future candidates.

19 Years of Positive Sales Growth -- BTW, Tim knows what he's talking about -- his company just completed their 19th consecutive year of positive sales growth.
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