The Top 10 Ways to Increase Business Value
In the last issue (#13), we discussed Choosing a Business Broker/Intermediary. In this issue we will discuss The Top 10 Ways to Increase Your Business’ Value.
" Your success in life isn’t based on your ability to simply change. It is based on your ability to change faster than your competition, customers and business." Mark Sanborn
The Top 10 Ways to Increase Business Value
In this newsletter series we identify the top 66 obstacles to a successful sale of your business, provide a 50-point action plan to prepare for the sale of your business, provide a 20-step planning process and identify 9 ways to leave your business.
By taking action on these 10 suggestions, you can increase the value of your business.
Everything you must do to prepare to sell your business is important, so it’s difficult to boil this article down to The Top 10 Ways to Increase Your Business Value. But following are 10 things most owners have not accomplished and that are critical to having a salable business and increasing the value of your business.
1) Start planning your business exit.
2) Learn the realistic value of your business.
Your business value can be determined by calling a business broker and asking for a no-charge (or minimal charge) evaluation of your business. When meeting with the brokers, discuss the 66 Obstacles to a Successful Business Sale (Issue #23) and ask for help in identifying the specific obstacles you need to be concerned about.
3) Develop a plan to begin overcoming the obstacles you face.
This article can help: Issue #30 – How to Start Overcoming Obstacles to a Business Sale.
4) Replace tax minimization accounting policies with profitability maximization policies.
Read this article for important points: Issue #35 – Preparing to Sell Your Business – Improving Profitability
5) Increase your gross margin.
To increase your profitability, and thus the value of the business. Read this article about the obstacle created by Low or Inconsistent Gross Margins (Issue #58).
6) Increase your sales and marketing efforts.
Many businesses have significant opportunities for improvement in this area. Read this article about the obstacle created by Inadequate Marketing and Sales Efforts (Issue #59).
7) Implement marketing automation.
The opportunities for significant revenue growth through marketing automation are very real and the cost is inexpensive when weighed against the benefits (which are amazing!). Although there are numerous marketing automation service companies, consider reviewing the free resources (webinars, reports, videos and articles) at http://www.infusionsoft.com/resources to learn more about marketing automation.
8) Systematize and document your business operations.
This article provides guidance: Issue #36 – Preparing to Sell Your Business – Systematize and Document Your Business Operations.
9) Develop second-level management.
To minimize your importance to the success of the business. Read this article about the obstacle created by Inadequate Second-Level Management (Issue #67).
10) Write your buyer's business plan.
Concentrate on the qualitative aspects of your business. Read this article: Issue #38 – Preparing to Sell Your Business – Writing the Buyer’s Business Plan.
