A business with negative value? It doesn't have to be that way!

Prompted by a discussion with Stephen Whyte I thought I'd share my views

Stephen made the point that tech businesses sometimes reach a point where they have negative value. That's because the software needs to be rewritten or updated, and you would need to install a management team. Lots of expenses on top of the outlay to acquire the business.

I agree that tech obsolescence adds another level but many businesses have not updated their offering as the market has changed.

Examples include a labelling business using 1970s technology well into the 21st century in a diminishing market and a car park ticketing business tied to one format that was superseded in the market.

One business I ran had a model that solved connectivity issues in computer hardware. That business had to completely re-position as the manufacturers (and MS Windows) removed the need.

How about businesses involved in print? In my book, Deal Finance, I explore the story of St Ives Press and how they re-invented themselves from book-binding annual reports into a marketing communications business.

All businesses have a life cycle. Markets change, customer needs change and your business needs to adapt to meet those needs.

The good news is that there is plenty of help. If you've realised that you can't carry on doing the same things, but don't know where to go next, get in touch. I and my colleagues at #UKBA have a wide range of skills!