Does Your Business Have Value???
The thought that crosses every small business owners mind, how much is my business worth? Most small business owners believe their business has great value, others some value, and others I simply don’t know. So, how much value does your business have? How much is your business worth? Let’s take a look …
While there are many determining factors in business value, the following certainly provide necessary attractive features for buyers;
Is Revenue Transferable?
Businesses come with customers who provide revenue to the business. Are you able to provide transferable counted on revenues to a buyer, such as a contracts; written agreed to customer relationships, etc.? Just because small business has revenues with current ownership doesn’t mean it will with new owners. Is the business dependent on owner’s expertise to product revenue? If so, is it transferable to new owners easily? The shorter the learning curve the greater the value of revenue for the business to the buyer and less “blue sky” a buyer has to absorb. This increases the value of the business tremendously.
Market Dominating Position (MDP)
Does your business have a certain expertise, process, procedure, etc. that makes you unique? Most do. This is your Market Dominant Position (MDP) and has incredible value. It is one of a kind that makes your business what it is and why it is. Therefore, your MDP increases your business value accordingly. Now, it is necessary that your MDP is not you rather the business itself. This translates to greater value to the business and less value to you, therefore, resulting in the business have increased value. After all, the goal is for the business to have the greatest value based on what you have built. Build the business, not the person.
Efficient Operations
I feel your pain. Setting up proper policies and procedures is a daunting task. In addition, setting up staff implementation is another daunting challenge. However, these are very necessary items for a successful business and one with great value.
Have a great team operating efficiently with imbedded policies and procedures are a recipe for great success. Keep this in place and sustained, the value of the business increases accordingly. It’s not just the product that gives the business value; it is the processes and the people too!
You won’t find a business with great value that doesn’t have great processes and great staff producing great revenues. This is a time and time proven recipe for successful businesses that provide the highest business value. Ask yourself, would you want to a buy a business that has inefficient operations, a poor staff and no processes in place? Businesses that have low value are a direct result of these issues.
The above are just some of the important items when determining what a business is worth. These are very important and should be examined thoroughly. No worries though, we are here to help with a wide range of services from one time consultations to full service ongoing support programs. All designed to help you and/or your business achieve the greatest return possible. Whether you are just looking for a little help or a complete business overhaul, we are your source of proven real world guidance.
You can only control what happens in your house, not your competitions! Don’t concern yourself what your competition is doing, rather focus on what you do and do it better than anyone. I did this when it was me, myself and I. Once I had a staff of any size I would instruct my staff, beat your man. I will beat my counterpart at our competition; I need them to beat their counterpart at the competition as well. This results in you winning each day which results into winning weeks, months, and years. Embrace the competition, crave it, and want it. Again, the only thing stopping you is you!
We offer a FREE no cost introductory meeting determining what works best for you. Schedule your FREE no cost meeting today…. Visit our website at www.nonniegroup.com
NONNIE GROUP
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