If you’re thinking about selling your business, it can be very beneficial to increase your business’ value before making any decision or putting it up for sale.
Whether you’re wanting to increase growth or value due to selling or purely for bettering your business, there are a couple of efficient ways of increasing your business’ value.
1. Value Your Business Currently
Finding out your business’s current value will make it easier to understand where and if you need to grow.
Obtaining an accurate business valuation can be tricky, so we’ve built a business valuation calculator that will make it easy for you to value your business, and it’s completely free.
Focusing on key growth areas and planning ahead for the future will be made easier once you have an accurate business valuation, as you can then track growth and see where you have made improvements and increased your value.
2. Improve Cash Flow
Improving cash flow will be highly beneficial for your business and will also benefit a future purchaser if you’re looking to sell your business.
Improving cash flow could include; cutting costs that aren’t necessary and being wiser with the money spent on extras that may not benefit your business and have high value for money, performing thorough inventory checks and adjusting where necessary and ensuring that all of your invoices and payments are paid within their deadlines, whether it be from B2B or B2C.
3. Show Consistent Growth
There is nothing better when selling a business than showing consistent growth, this will undoubtedly increase your business’ value without you having to do a lot of extra work.
Showing consistent statistics, whether that be growth through social media channels, profit or a growing customer base, will make your business look more secure and increase its value as it has a proven business model that is successful and effective.
Consistent growth is the added reassurance every business purchaser will be looking for.
4. Build a Wide Customer Base
Similarly to showing consistent growth, a wide and loyal customer base will automatically increase your business’s value as it shows you have returning customs and will be able to generate revenue consistently.
Having a wide customer base is invaluable, as it ensures that your business will remain successful and build upon its existing contacts.
Having a wide customer base not only increases your business’ value, but looks more attractive to a business owner that may be looking to purchase.
Increasing your business’ value is a great way of ensuring that you will get the most out of a sale, or will continue growing your business successfully.
We provide a FREE business valuation for any small business owner looking to find out the value of their business.
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At Intelligent, all of our experts use a specific formula that will give you a free and highly accurate baseline valuation so that you've got a figure to work with that most realistically resembles the value of your business.