Creating value over the long term, matters just as much as short term profit, but how can you increase the value of your business without significant risk , or massive investment? Here’s 5 ways to increase the value of your business.
1. Remove Yourself From The Big Picture
Eliminate yourself from the picture to gauge how well your business can function if you took a long vacation, or needed long term medical intervention. The bottom line is if your business cannot function without you, it does not have as much value as it should. No business owner should be absolutely essential for operations to function smoothly. Make yourself “not needed” and it will send a clear message to your team that the company can grow by itself without you. This is the motivation your team needs to take ownership and have greater autonomy which most employees relish.
2. Build Repeat, Recurring Revenue Streams
If your business does not yet have a recurring stream of revenue, it is long past time to develop one. Recurring revenue streams are not as prone to risk as one-off sales. However, it will take some time, money and creative thinking to form a reliable stream of recurring revenue. Find a way and you will be able to sit back and relax a bit more, knowing your business can rake in the cash without constant oversight or innovation. As an example, convincing customers to subscribe to your product or service with a recurring contract will ensure a steady flow of business.
3. Customer Outreach and Quality Control
The best businesses have customer outreach programs, which find out what customers dislike and like about your business. Also, perform ongoing, regular quality control audits, making the appropriate alterations and your value offering will justify a competitive market rate. The moral of the story is to acknowledge the truth no matter how painful it is. Continue to listen to your customers, enhance your operations based on their feedback and your business will gradually increase in value.
4. Get An Independent Audit Of The Business
Cleaning up your company’s books really can enhance the value of the business. Take a close look at your company’s accounting. If your aim is to sell the business in the near future, arrange for an independent financial audit. Also arrange for an internal auditor to review your operations, business processes and IT systems. This independent review of the will provide an honest look at the company’s financial health, as well as identify ways you could make the business even more efficient and effective. Making it more transparent and open to independent feedback can make your business more attractive to buyers.
5. Create New USPs
The average customer looks to the market for a solution to a problem he or she cannot solve by themselves. Present something highly unique that solves problems or improves customer’s quality of life in some way and you will always have a customer base. Continue to innovate and offer something different from other industry competitors and your company’s value will steadily climb.
Always be striving to enhance the value of your business every day
Focus on the five ways to improve the value of your business as outlined above and you will gradually notice your company becomes more profitable. Perhaps most importantly, your business will prove to become more marketable to prospective buyers. Whether you are looking to sell your business or simply position it better, the advice here will help guide you along the way. Pin this article to your vision board, follow these helpful tips and watch the value of your business climb up every day.