There are many external factors business owners can’t control, such as the general economic or industry environment. However, we at CAI have found there exists a set of critical considerations owners should keep in mind when seeking to increase the value of their business – whether they’re looking to sell soon or not.In order to generate $5-million in cash flow, a company either needs $500-million of revenue at a 1-per-cent margin, or just $33 million at a 15-per-cent margin.
It’s also risky to operate a business this way because the world changes quickly. If a recession hits tomorrow, your rock-solid retail deal could start to feel pretty shaky. It’s important to keep your customer base diversified.This is your basic organic growth.