Last month I introduced the concept of a business dashboard as a tool for monitoring your business. Monitoring KPI in the months or years prior to selling your business will facilitate exit strategy success by helping you to organize and monitor relevant information and tasks. In general the following best practices enhance the functionality of any business dashboard:
- Limit KPI to 6-8 metrics that matter: Focus on quality, not quantity.
- Visual: The dashboard should be attractive. A (pretty) picture is worth a thousand words.
- Interactive: Where possible, provide access to drill-down data.
- Current, or don’t bother: A true dashboard provides real time data…otherwise you have nothing more than a monthly (or weekly) report.
- Clean and Simple: Each element of the dashboard should be understood in 3 seconds.
The activities that lead up to increased worth are varied and many. During the business exit, it’s critical to monitor tasks and outcomes on a regular basis. The dashboard software that I suggest for my clients functions as a real time tool for them to manage the overall exit process. The dashboard software monitors individual projects to be completed, organizes the overall progress of the exit strategy process, displays current value of the company, and much more. You can view a dashboard demo here: www.TheExitStrategyHandbook.com.
Selling your business is a process that requires sufficient time, planning and guidance. Contact me for more information about how to plan for selling your business.