Updated: May 10th, 2023
Time to face facts, business owners - there are plenty of things you can do to be more successful, but maybe you just haven't learned the right strategies yet.
Building more value into your company can be one of the most impactful moves, giving you a more hardy business that'll be worth more when it comes time to move on.
Don't be left behind - check out these foolproof tips for increasing your biz's value today.
Strategy 1: Build Your Team Early
Planning for a business sale isn't just about the end result - it's also about preparing your team. Start now by connecting with an experienced broker, lawyer, and financial planner who can offer invaluable advice on how to maximize value in advance of any possible transactions. Get them working together towards one goal: making sure you get top dollar when you're ready to sell!
Strategy #2: Books & Records
It's time to take action on your business’s financial future! Securing the assistance of a professional can ensure that you are up-to-date with taxes and regulations, helping increase overall value and protecting yourself from any risks. Get ahead now - audit those books & records for an essential step towards success today!
Strategy #3: Remove Yourself
Knowing the value of your business is critical to understanding its potential. To increase that worth, you'll want to remove yourself from day-to-day operations by training key staff and delegating tasks accordingly. Your employees can keep things running as needed while you focus on growing your knowledge base for strategic planning - allowing both areas in which to gain valuable assets!
Strategy #4: Reduce Concentration
Don't put all your eggs in one basket! It's important to diversify the customer and vendor base of your business. To maximize its value, make sure no single client or supplier accounts for more than 30% of sales - this will ensure stability over time to protect against potential losses if you were unlucky enough to lose a major account.
Strategy #5: Protect & Document Processes
Want to reap a major Return on Investment (ROI)? Invest in your business by protecting and documenting key processes. Not only does this ensure continuity, transparency, and training efficiency for new employees; it also helps keep everyone on the same page so you can focus on increasing your company's value!
Conclusion
It all boils down to the value of your company when it comes to selling and making a return on all those hard-earned years of work, so be sure you're taking all the necessary steps to increase your business's worth.
The strategies outlined in this blog can help you get started - building a strong team early on, maintaining accurate books and records, removing yourself from future deals and customers, diversifying investments, and protecting processes with documentation - all set up to drive success through increased value.
To take full advantage of the insights discussed here and support making the most of what you have, contact one of our brokers today!
Collectively leveraging Transworld Business Advisors of Colorado’s knowledge of the market is sure to help you navigate the paths to business success that best fit your situation - don’t waste any time increasing your organization’s value!
