Opinions expressed by Entrepreneur contributors are their own.
As the AI revolution accelerates, business owners preparing for an exit can harness this technology to increase efficiency, scale operations and improve profitability. These actions make a company more attractive to potential buyers and ultimately increase its value to new heights.
AI isn’t a single program you introduce to your company, then stand back and watch as it works magic on your processes. It’s a broad term for an array of tools that create efficiency through automation, with different tools designed for the various areas of a business. It takes some training to use it effectively, so before diving into AI, you must identify what areas of your business would benefit the most from it.
Identifying opportunities
Start with repetitive tasks, especially those that add more work as the business scales. AI excels in scenarios where tasks are tedious, don’t scale efficiently and aren’t highly sophisticated. This includes research, marketing and even sales support functions, which are vital to driving productivity and cost savings. These functions are ripe for AI integration because they allow the business to expand without constantly increasing overhead costs.
For instance, some companies have a time-consuming client onboarding process involving extensive research to gather basic background information. Using AI for basic research saves hours for a human employee, who can now manage an AI tool, review the work in a fraction of the time and spend more of their day on strategic, client-focused efforts.
It’s the kind of AI power that can significantly increase the value of a business preparing for sale. Potential buyers look for more than just strong financials. They want to see that the company is efficient and scalable, which is where AI becomes a strong selling point.
Related: How AI Can (and Should) Drive Innovation Across Your Entire Organization
Measuring success
Implemented correctly, AI can improve several key business metrics:
-
Revenue per employee: As your team becomes more efficient by doing less of the repetitive work they have been doing, you should see an increase in the revenue each employee brings in. This metric signals to buyers that the company can scale without significantly increasing labor costs.
-
Gross and net margins: By outsourcing labor-intensive tasks to AI, you can reduce operational costs and improve profitability. Higher margins make a company more attractive to buyers because they indicate a well-run, cost-efficient operation.
-
Capacity: AI can help businesses do more with less. It can assist small and medium-sized enterprises bridge the resource gap when competing against larger companies with bigger budgets. For example, an advertising agency might be at full capacity with its current team. Utilizing AI can save time and resources, allowing the team to take on more clients without expanding headcount. This capacity growth is a strong indicator of future scalability.
Potential buyers will want to see these metrics over time to judge whether they’ve improved and are likely to continue improving.
Resist the urge to make much of the mere fact that you use AI tools. If executed thoughtfully, AI will lead to improvements that speak for themselves. You won’t have to tell buyers you’re AI-enabled—they’ll see the results.
Practical AI tools for small businesses
Once you know your needs, what AI tools should you use? Here are three categories of tools that can increase efficiency and, ultimately, value:
-
Research: AI can automate research tasks, saving employees significant time. For example, AI agents can gather background information on new clients, allowing team members to move directly into the strategic phases of their work.
-
Marketing: AI can automate content creation, copywriting and even video production. By using AI tools for marketing, businesses can produce higher volumes of content without increasing staffing. Marketing can do a little bit more creative tasks, such as copywriting and creating images and social media posts.
-
Sales support: AI can assist in lead generation and prospecting campaigns by compiling lists, writing outreach copy and automating follow-ups. By having the functions automated, the sales team can focus on closing deals rather than spending hours on administrative tasks.
Without AI, you might tell an employee to, for instance, build a prospecting campaign for B2B business owners under $10 million in revenue and conduct outreach to them. They’d have to compile the list, write the copy and then contact them. Now, you can use AI tools to compile the list, write the copy and do the sales outreach on platforms like LinkedIn, even execute the campaign for you. So, then the salesperson can do high-level tasks like managing the campaign and responding to leads.
With AI, we’ll mostly eliminate the upfront boring tasks so we can do the things that really ignite us and drive value in a company. You don’t have to eliminate jobs, but you can upgrade the quality of the projects you assign to your existing teams and keep them engaged and excited.
Related: 5 Ways AI Can Accelerate Your Entrepreneurial Journey
A long-term investment
It’s essential to recognize that AI implementation is not a quick fix but requires a long-term mindset. Whenever I’ve introduced any new technology in my own business, it’s taken at least a year to see the full impact on the company.
In preparing a business for sale, the earlier AI is incorporated, the better. Prospective buyers will want to see a clear pattern of improved metrics over time, not just a rushed process with uncertain results. It’s never advisable to sell a company when it’s still figuring out how to use AI, especially since your revenue may dip during the learning phase.
The key is to approach AI strategically, focusing on areas where it can make a difference. When done right, AI won’t just be a trend but a critical tool for maximizing your business’ value.
