Building Value in Your Business
The decisions you make should be directed toward building value in your business, even if you don’t intend to sell, or not for many years to come.
The following are five factors that will make your business more valuable and appealing to an outsider:
- healthy income stream
- tidy profit after all costs and overhead are paid out
- proven plan of marketing that produces consistent sales
- strong client/customer base
- organised, efficient work-flow system
The sixth, and perhaps the most important factor is: If you leave the business, what happens to it?
The more the business relies solely on you, the less valuable it is. Your “irreplace-ability” may do wonders for your ego and your business right now, but little for your value when it comes time to sell the business.
When your business relies on you, you begin to only be able to sell yourself – customers only want you. In addition to this, it isn’t healthy for work-life balance. Giving so much to your business leaves little left over for family, hobbies, or relaxation time.
It’s never too late to set your business up as if you were going to sell it… that way you’ll be ready, should the need arise, rather than regretting what you might have done, “if only you’d have…”
