Are you thinking of selling your business? Before you do, you’ll want to make sure it’s worth as much as possible. Even if you’re not thinking of selling, you want to make sure you’re building a business that has value. Here are five creative things you can do to push your business’s value up a bit.
- Diversify Your Revenue Base
Who is your target customer? If one genre of person is representing 30 percent or more of your revenue, then you have too much risk. Potential buyers aren’t going to invest in a company that hangs all of its profits on one group, so diversify your revenue base to see your value rise.
- Increase the Speed of Delivery
Next, find a way to get your product or service to your customer faster. People are impatient, and they want their items yesterday. If you can get faster, you will be more valuable in the eyes of your customers, and the better your reputation, the more valuable your business as a whole.
- Streamline It
Another strategy to make your business more valuable is streamlining your internal processes. Not only does this make you more efficient, but it also makes the transition easier for a potential buyer in the future. You will show buyers that they can successfully operate the business when you’re gone when you have efficient backend procedures already in place.
You must be able to offer something that others don’t. Differentiation is the key to being valuable in a highly competitive market. It also is the key to commanding a premium price in a market that’s dominated by competitors. If your product or service is unique, you’ll see plenty of interested buyers coming and asking for a piece of it.
- Clean It Up
Think your back office clutter isn’t important? Think again. A business that has high value is one that is well maintained and clean. If your facility has seen better days, and you suspect that you may want to sell in the future, take some time to clean things up a bit, and you will see your value increase dramatically.
Remember, the value of your business is multi-faceted. It’s not just your product or your facilities. It’s the whole package. Take time now to make your business more valuable, and you will be rewarded with high resale value when the time comes.