Lee The SME Owner

Chapter Twelve - Testing the Waters

As Lee looked at the figures in front of him, a sense of cautious optimism began to take hold. After years of consistent results, he and John had decided to push the business further—not with huge investments or risky ventures, but with a laser-focused effort on improving production efficiency. John had posed the simple but challenging question: How much more could you do, knowing what you know, without major changes?

Lee had thought about it long and hard. His company had been solid, generating $6,000,000 in revenue each year, with a healthy EBIT of $750,000. That was no small feat, especially in his industry. But as John had pointed out, the business wasn’t stagnant—it had potential for more, even without major investment. So, the plan was simple: focus on productivity, squeeze more value out of the existing processes, and aim for a 10% boost in sales and a 12.5% increase in the bottom line.

It had seemed ambitious, but Lee wasn’t afraid of hard work or smart improvements. He knew his team, his systems, and his market better than anyone. If anyone could make this work, it was him.

Now, six months later, the numbers were in—and they had done it.

Sitting at his desk, Lee reviewed the latest reports. The production improvements they’d implemented had paid off. Sales had jumped by 10%, just as he’d predicted, and their EBIT had climbed by 12.5%, giving them a bigger profit margin than they’d ever seen. What had seemed like an ambitious target was now a reality.

John had been right to ask the question, and Lee had been right to back his instincts. There was more in this business than even he had realised, and now, with this new level of efficiency, the company was generating even more value without the need for significant changes in structure or staffing.

The results gave Lee confidence as he moved forward in his exit planning. This wasn’t just about creating short-term gains; it was about positioning the business to be even more valuable in the long term, whether for a buyer, the management team, or—dare he still hope—Glenn.

But there was something else that these results confirmed for Lee. He wasn’t done yet. The success of this push showed that with the right focus, he could not only prepare the business for his exit but also increase its value significantly over the next few years. Every improvement, every percentage point added to the bottom line, was a step closer to a stronger, more secure future.

As he closed the reports, Lee felt a renewed sense of purpose. The five-year window didn’t seem so daunting anymore. Yes, it was both a long time and not long at all, but if they kept moving at this pace—building steadily, growing strategically—he knew that when the time came, he’d be in the best position to make the right decision for himself, his family, and his business.

The next conversation with John would be about what came next—how to keep the momentum going and ensure that each year leading up to the exit was just as productive as these last six months had been. Lee wasn’t just preparing to step away; he was preparing to leave the business in the best possible shape, for whoever might take the reins.