Propane Business Checkup

Many things in life and business need regular inspections, maintenance, ...or checkups.?Propane company owners and management must remember that this also applies to their business! Having a valuation performed on your business regularly can ensure that financials are kept in order. It can bring a negative aspect of your operation to the surface for you to address.

A valuation can identify risk factors that an owner may not have considered. Just like a regular medical checkup can catch a health concern in the early stages, a valuation can do the same for your company.

Analyzing your company's financial statements is one of a valuation's biggest and most important aspects. We often find company financials needing to be consolidated into more line items. We recommend breaking out a generic “Propane Sales” line item into multiple lines, such as Residential Sales, Cylinder Sales, Commercial Sales, etc. This can provide more insight into where the company is succeeding, but more importantly, where the company is struggling.

Routine valuations can illuminate areas of improvement. Business owners tend to develop tunnel vision in their day-to-day operations, preventing them from seeing subtle issues or gradually developing problems.?We have seen clients order a business valuation every three to five years. This ensures they keep their operations, financials, and organization as a whole on the straight and narrow.

This article is an excerpt from a more extensive article by Adam Zoellner, Manager of Consulting and Acquisitions at Propane Resources. It was published earlier this year in the exclusive?Leadership Guideposts?newsletter, a Propane Resources, LLC service.

Propane Resources has been a leader in propane supply, marketing, human resources, consulting, and business sales since 1992. For questions or more information about this topic, call Adam at 913-262-8345 or email him at [email protected]. For more information about Propane Resources, please visit our website: https://PropaneResources.com