10 Ways to Increase the Value of Your Business
Posted on May 05, 2021 by Tyler Martin, One of Thousands of Business Coaches on Noomii.
As an entrepreneur, you should be interested in increasing your company's value which will create more free time to enjoy life and a business with a
As an entrepreneur or business owner, you should be interested in increasing your company’s value. If done correctly, the byproduct is you have more free time to enjoy life and a business with a better bottom line.
Now, you may have been led to believe that there’s some magic strategy that will generate astonishing results, and while fantastic success can be achieved, it’s not always easy.
Here are ten business building tips to increase your company’s value:
As a Certified Business Coach, I have worked with countless clients to build their business and increase value. I’ve also done it with my own businesses before selling them as part of my exit strategy and planning.
How did I do this? Each company is unique, but to give you some insight and ideas, here are ten ways to increase your business’s value.
FORGET ABOUT CHASING REVENUE
Yep, forget about chasing revenue. Revenue isn’t always measured in the highest amount possible, and chasing revenue can lead to a company overstretching itself. Extra sales are great, but if they are low-quality sales, you might be spinning your wheels.
Quality of sales and sales diversification is way better.
There is a famous quote that illustrates my point: “Top line is vanity, and bottom line is sanity”
In other words, chasing more sales isn’t necessarily better. It’s the quality of business that counts.
UNDERSTAND YOUR CUSTOMERS
This is key, so spend time finding out what your customers want, like, and even dislike about what you offer. Knowing this allows you to tailor your company to fit in perfectly with those needs or requirements, which will boost your value in both how you help your customers and with revenue.
LESS IS MORE
Less can be more, and by this, I mean selling fewer products to more customers. Finding a niche and specialty allows you to build your brand and become associated with whatever industry or market you work in. This adds value as people trust what you do or offer.
STREAMLINE
By streamlining, I’m talking specifically about products or services where there’s too much reliance on you dealing with every aspect. This takes up time, and time is precious. If a service or product requires you to put in too much energy to get it to the customer while offering little in the way of value to your company, then consider dropping it for something more economical in both time and money.
NEGOTIATE PAYMENT TERMS
I’m not saying everything must be paid immediately. However, this depends on your business, but having an unhealthy cash gap and being reliant on getting paid after a service or product isn’t healthy from a business standpoint. Find a balance, as it not only helps stress, but it improves your cash flow as well.
BUILD RECURRING REVENUE
Recurring income is terrific, as it allows you to build a revenue base you can then work from. If you know in advance that a specific amount of revenue will come in every month, this reduces stress and makes it easier to plan for the future.
Many business owners start the conversation with me that they don’t have a way to generate reoccurring revenue or there’s not a high enough return. There are many creative ways to create subscription revenue, including bundling services or tying services into other offers.
The key is to think creatively here.
DON’T BE AFRAID TO STAND OUT
Never be afraid to stand out. Blending in with the crowd makes it harder for you to help people see your company’s value.
Having a USP or market-dominating position can separate you from the pack and create value in your business.
DEVELOP KPIs, DASHBOARD REPORTS, AND A TIGHT FINANCIAL CLOSE
This tends to be one of the most significant weaknesses for entrepreneurs and business owners. They often don’t know their numbers or the key metrics to assess business performance.
Developing a solid financial system not only builds value in your business but takes you to the next level in being able to manage your business.
BUILD A STRONG TEAM
Employees are the backbone of any company, so build that team that compliments everything you do. Educate them on the business and think proactively to allow them to make the right decisions every time.
Remember investing in your employees and building a great team not only increases the value of your company but creates a business that can begin to run itself without you.INSTRUCTIONS ARE KEY
I strongly advise being able to provide clear and accurate instructions for anybody involved in your business. This eliminates mistakes and leads to a better atmosphere in your company. A better atmosphere leads to better service, and that is something any business should strive for.
CLOSING COMMENTS
While this has been a brief article, I go into these points in more detail on my blog, so check it out and see how these ten points can add significant value to your business, give you more free time and improve your bottom line.
More about Tyler:
My Podcast: www.thinkbusinesswithtyler.com
Coaching Website: www.thinktyler.com
Strategy Scorecard www.GetStrategyScorecard.com (Assess your business strategy in less than 10 minutes)
