Issue link: https://iconnect007.uberflip.com/i/1361971
102 PCB007 MAGAZINE I APRIL 2021 continue to push the envelope in terms of tech- nology, quality, and capabilities. Enterprise Systems: ERP, CRM, and design soware upgrades—these investments all cost time and money, but it is more expensive to not invest and eventually find yourself behind the times. Many of these systems have moved to a SaaS model and are becoming easier to imple- ment, which makes it less costly. Also, due to cybersecurity requirements, companies must have more secure, compliant systems or cus- tomers will be forced to send their jobs some- where else. Sales/Marketing/PR: Many small companies have almost no sales, marketing, and PR ef- forts. at is a guaranteed way to stay small. Staring at the phone or email inbox does not make new customers contact you. It costs nothing to manage and encourage salespeo- ple. Marketing can be done efficiently, such as sending out monthly newsletters and articles. Everyone has a story that they can promote. Management Team/Delegation: Owners should develop their management team by delegating tasks, coaching, paying for training, and en- couraging their team to develop new skills. It is hard to sell a company that is over-dependent on the owner. Financials: Still using spreadsheets or Quick- books? It may be time for an upgrade. Before launching into a major investment, challenge your CPA/tax advisor to find improvements. Every $1 in increased efficiency goes into the owner's pocket, and results in a 4, 6, 8X in- crease in value at the time of sale. Facility, parking lot: We understand that own- ers do not want to build a new facility a year before selling, but it does not cost a fortune to put in new lights, paint here and there, fix the parking lot, etc. Perhaps the landlord will give some credits for facilities improvements. Some cities or other government entities give credits for LED lighting or solar panels. If the employ- ees see that the owner is not putting any mon- ey into the facility it hurts morale. Customer projects, designs: Business owners may not want to change their company into a science project, but it pays to take on selective projects that increase the connection to the customer as well as improve the company's ca- pabilities. Working with local universities and community colleges is an inexpensive way to promote technology as well as find new em- ployees. Partnerships: Many businesses supplement their capabilities by forming partnerships with companies that have different strengths. For example, a rigid PCB shop working with a flex shop on marketing leads, or with an assembly shop for special PCBA jobs. Owner education: Many owners seem to reach a plateau and stop trying to learn new tricks. Meanwhile, the world is changing. Believe me, I know it gets harder to learn as one gets older, but it is good for the brain and the company to keep learning. Find out what your weak points are and take some steps to learn what you can. e last time I looked, the internet and You- Tube are free and have tons of interesting/edu- cational information. Why do owners put off or stop investments? Some of the reasons are milking, cruising, lack of energy, life-style decisions, etc. Owners al- ways must decide whether they want to grow, sell, milk, or close. We oen see that compa- nies do not have an estimated valuation that would be high enough to compel an owner to sell. By continuing to invest in the company, employees, and capabilities, owners can help ensure a great payday and smoother process at the time of sale. PCB007 Tom Kastner is the president of GP Ventures, an investment banking firm focused on sell-side and buy-side transactions in the tech and electronics industries. GP Ventures has offices in Chicago and Tokyo, with five people in total. To read past columns or contact Kastner, click here.