Whether your goal is to expand into new markets and seize greater economies of scale or to sell your business for the highest price, exploring new ways of increasing your business’s value is essential.
If you’re thinking about selling your business, then you probably have a figure in mind when it comes to matching or exceeding your exit goals and laying the foundations for the next phase in your career. That’s only natural.
Fortunately, increasing your business’s value boils down to a lot of things that are within your control. The more time you have to prepare, the better.
Six Ways to Increase Your Business’s Value
Imagine that your boat is taking on water. The first thing you would want to do is plug up the leaks. After that, you would start thinking about making sure that you got to your destination safely and on time.
The same basic principle applies for ensuring streamlined and diverse sources of revenue for your business.
· Reduce employee turnover
To continue with the above analogy, the “leaks” in your business could very likely be high employee turnover. Actually, this is two problems rolled into one.
When you’re dealing with high employee turnover, you’re getting a shock to your system every time a valued employee leaves your organization.
That hurts in itself, but it also makes it difficult to get into a rhythm. High employee turnover can hurt you in another way, as well, though…
· Offer incentives to high flyers
Implicitly, high employee turnover means that you’re leaking your star talent too.
You should be offering your top employees every incentive to stay with your organization, because doing so is a surefire way to create a stable business that finds its rhythm and maximizes shareholder value.
· Franchise your business
Franchise brokers can help companies understand the benefits of franchising out their businesses.
Franchising your business has a lot of advantages, such as: easier management, better growth potential, more purchasing power and greater economies of scale, and richer support networks.
· Create more revenue streams
Increasing your customer outreach, striking better deals with vendors, and reducing inefficiencies in your organization are all ways of guaranteeing that your business sells at a higher price down the road.
When you stop to think about it, what are buyers really looking for? They’re primarily looking for a business that doesn’t have a ton of obligations and has a pipeline to multiple and increasing revenue streams.
A buyer wants to see that your business is also on a positive trajectory and that it is positioned within an industry that’s slated to grow in the future. It might be necessary to expand or change your market to get there.
· Expand and change your market
Expanding into new markets or altering the geometry of your market position are two growth strategies that all businesses should at least consider.
Getting into new markets could mean expanding your online outreach, conducting market research to find your most promising future customers, or refinancing in order to shore up resources for new product development.
Changing your market position can also increase the value of your business. One way to get there is by appealing to more of a mass-market audience or, conversely, refining your product and becoming more upmarket.
· Invest in marketing and sales
Investing in better marketing and sales strategies can help you reach a more diverse group of customers and make a stronger pitch for your products and services.
Make sure to track key performance indicators (KPIs) and customer satisfaction and retention over time so that you know what’s working and what needs to be tweaked.
Visit our website at Transworld to learn more.