Beyond COVID-19 – How to Build Value in your Business
This has been an extremely difficult few months for all of us, but there is no better time to think seriously about your business. In this article, we have compiled a few tips to create value in your business.
The key to building value in your business is to plan the process in a systematic way, whether you are aiming to grow your business or groom it to get a better price from a buyer.
Looking through the eyes of buyers
Do you want to build a stronger business? Are you looking ahead to the day when you might want to sell it? It helps to think of your business through the eyes of a buyer. Aim to:
Identify any weaknesses they might see in your business and what you can do about them.For instance, do you need a bigger client base for your pilates classes? How can you attract more clients?
Think about the strengths that may attract buyers and how you can reinforce these strengths. Perhaps you can offer online classes right now and it will reinforce a community spirit and help clients stay connected to other people.
Work on stability
The longer your business has been operating, the easier it could be to sell, provided it has a solid track record. Aspire to:
Keep well-documented business performance and tax records.
Document business history and projects completed, or customers gained.
Develop reliable markets
A strong history is reassuring, but buyers will be more interested in the future. Make sure you:
Show evidence that your main markets are growing or at least stable rather than declining.
Demonstrate you have taken steps to change your market position, if necessary. For example, a motel may be able to grow by making steady improvements to its facilities, moving upmarket and, therefore, increasing its prices.
There are a number of ways to consider how to increase the potential growth of your business. What do you think adds the most value for your customers. That’s where you might want to begin your focus.
Stay tuned for part two of this blog post tomorrow: Nurturing a stable customer base.
Have a question about your business? Please do not hesitate to ask. Our goal is to help our clients future-proof their business.
