Improving the profits of your business will increase your value when it is time for a business valuation for M&A purposes. The biggest key to creating business value is to build repeatable profits of a quality that they are worth paying for by the buyer.
In this economy a you need to have competitive advantage over your business competition. You can’t rely on past success. Running in place is not a viable option. Not moving forward is asking to be passed. Know your market and strive to be on the leading edge if you want to achieve future success and create maximum business value.
Considering Selling Your Business? Please click here for a downloadable e-book, “ 10 Ways to Increase the Value of Your Business“.
Other keys to creating that value are:
- Increase profits/Cash Flow
- Maintain Records that tell a Story. As times change so must you. Certain expenses to upgrade, improve, or just advertise your business more effectively can be reflected with increasing profits. Since you know that success here is not instantaneous, persistence is required. Your records will show what of your changes and efforts are successes when your moves are good ones. It all goes back to knowing your market.
- Reduce Risk/Improve Transferability
- Lock in key People (Golden Handcuffs for Key People)
- Obtain long term Customer Contracts when possible
- Sales systems to ensure a pipeline of customers
- Growth, only with profits
Remember, “Create repeatable future profits worth paying for.”
Clients choose Harvest Business Advisors for our accurate business valuations and our consistent ability to deliver the highest price in the smoothest sale transaction possible. Harvest provides business brokerage, business valuation, and business succession planning services. We have extensive experience in the information technology and professional services, manufacturing, distribution, and contracting fields. We maintain offices in Maryland, New Jersey and Virginia. Connect with us at firstname.lastname@example.org or 443.334.8000 to discuss selling your business, ordering a business valuation or buying a business.