7 Ways To Increase Your Company’s Value (Starting Now)
Increasing profitability. Retiring early. Starting a side business. Improving your quality of life. The more valuable your business, the more opportunities it can provide for you personally and professionally.
No matter how your company performs today, you can increase its value over time and boost your future sale price with these seven tips:
- Be prepared. Acknowledge that transferring the ownership of your business to an investor or family member is both inevitable and perhaps the most significant financial transaction of a lifetime. Prepare accordingly.
- Check the Numbers. Planning on using the eventual sale of your business to fund your future retirement? Establish concrete savings goals now, and obtain a third party appraisal of your company’s value. How do the two numbers compare?
- Get Organized. Clean up your books and documentation now to make it easier for future investors to understand the true financial benefit of owning your business. Taking a long-term approach to financial organization now will make it much easier to secure a higher sale price when the time is right to sell.
- Involve your staff. Hold your staff accountable for building value in their respective departments and reward them accordingly. You’ll increase creativity, create a sense of ownership, and improve efficiency, too.
- Know where you stand today. Make better long-term financial and strategic decisions with the support of a current business appraisal. Armed with this knowledge, you’ll be more equipped to take calculated risks, and better able to protect your company’s future.
- Develop a sound management team. Much of your company’s value is dictated by how well it functions without you. If everything depends on you, your growth potential is limited; a dependable team can take your business to new levels.
- Establish measurable goals. The primary reason businesses do not increase in value is because the owners do not establish a starting place (see #1) or create defined objectives that contribute to the company's value. A defined finish line focuses and aligns efforts, and lets you track your progress along the way.
What's My Company Worth?
Whether you’re ready to sell or just planning for the future, it could be the most important business question you ask this year.
Begin your TransValuation ™ here to get the facts about your business.