If yes, then let’s go through the different levels of business development, including the undeveloped, the semi-developed, and the fully optimized.
- The undeveloped business has great potential for improvement as the reasons could be anything ranging from the neglect, need for refurbishment to bringing in new types of equipment. Investing more time and capital in an undeveloped business will increase the profits while boosting the value of the same. However, you must prepare a budget for the development costs, plus introduce management controls in order to improve efficiency.
For an increase in annual profit, you raise the business value by over 2 baht. If you have a proper plan to execute for business development, you can remodel the business within weeks. In case you want to sell the business, you are likely to enjoy huge capital gains.
- On the other hand, the semi-developed business offers only a fewer opportunities for improvement. Therefore, it is extremely important to undertake business improvement performance wisely. If you think that the premises need to be enhanced, then you can replace the old furniture or simply convert it into a completely modern setting. Also, it is essential to get the lighting right in order to draw more attention. The reason of the failure of the semi-developed business could also be untrained employees. Thus, to improve their quality you should train them.
- Now, comes the ultimate turnkey business, i.e., the fully-optimized In here, the present owner has worked quite hard to perfect efficiency and thus it can pose difficulty upon you to maintain the level of performance. Typically, this type of business is sold to earn the highest multiple.
However, your ultimate choice of business depends a lot upon your knowledge, and the resources to offer, including funds, technology, and assets. While some businesses need great customer service, the other may need capital investment. And you must be able to offer both.
