Each small business owner has the same goal: Turning their small business into a successful, high-value enterprise.
Unfortunately many owners fail at transforming their seed of a business and into a tree.
But there are things that an owner can do to increase their business value and achieve top dollar when they’re ready to exit, no matter when that is.
Step one: Focus on increasing cash flows and minimizing taxes. This is one of the best steps a small business owner can take because when you increase cash flows, more money flows directly to the bottom line. More money on the bottom line increases the amount you’ll be able to get in a business sale by a multiple of as much as four to six times.
Step two: Create a better customer acquisition strategy. A better customer sales process and a unique product will continually put you in a market leadership position. A high-quality product with great service will also add value and make your business worth more.
Step three: Hire or train a successor. This shows any potential buyers that your company will be able to succeed even in your absence.
Step four: Create recurring or repetitive revenue. To be able to increase your businesses value, try to obtain regular or repetitive customers. Regular customers can increase the revenue in a business tremendously and can show a potential owner residual value.
Whether you are interested in selling your business now, in ten years, or not selling it at all, it is always important to aim to increase the value of your business. And we’re happy to help. Contact us for a free evaluation to see how we can help your business.