Whether you are thinking of selling or not, it is always good business to increase the Value of your business. So many business owners become disappointed when looking at the value of their business when they find out what it’s really worth.
I will go over some simple steps you can take now for the “what if” in the future.
Your Business Profitability Matters
Investors will only want to look at one major thing first! Your bottom line, your net profit! Finding every way to decrease the costt of your business will create efficiency leading up. As long as you are able to show a continued growth in profits your business will look impressive.
Create other sources of income for your business
Think about what else you can add to your business that will create extra revenue, preferably recurring income that will also be profitable to the new owner.
Establishing a system that documents every procedure
Having an Operations Manual can give tremendous ease to a new buyer. Buyers will feel comfortable and trust that after you leave the business it will continue to generate an income.
Cultivating high morals, standards and quality workers
No one likes to take over the company only to realize that the employees have a list of complaints and possible turnover. You can easily increase the value of your company by cultivating great quality long-term employees.
Making your presence notable in the competition
If your company stands out, it will also increase the value. Investors want a company that dominates the competition. Think about what is unique about your company. Patent any ideas that are exclusive to your company or develop procedures that will expedite your services.
Knowing the value of your highest assets
Not just your tangible assets like the furniture, company cars, equipment but also the value of the intangible assets like your client contracts, agreements, brand recognition, customers. Having and knowing every single intangible and tangible asset is key to increasing the value of your business.
Assessing your company risk
Is your company in maximum health? Are there any loose ends? Financially is there anything that is roaming that might affect the buyer? This is important not only for you but for the buyer as well.
If you are ready to sell your business and would like a FREE Brokers Opinion of Price contact us! We are happy to assist you! Selling your business does not have to be complicated.