When business owners start talking about increasing the value of their business, it’s usually with the intention to sell. But there are also other reasons that businesses start investing in their value. Equity value, financing and to monitor the growth of a company are a few other reasons why businesses do a business valuation.
As a business owner, you know the personal value of your company to you and it’s in your best interest to do what needs to be done to make your business even more valuable. With shareholders involved and invested in your company, they need you to keep giving them reasons to stay invested. Hence, increasing the value of your business can only benefit you and everyone involved.
An easy place to start building value is through your company’s website. Your website is a portal of first impressions that the public has with your company, so it’s important to keep it fresh, updated and relevant.
Your website should communicate who you are, what you do, what you stand for, why you’re the best, how to get in touch and how you can help the user visiting your site. And, on top of having a comprehensive and informative website, you need to invest in the right marketing campaigns to promote the relevance your website has above the competition.
Technology will not only make running certain processes in your business easier, but it will increase the value of your business. More and more companies are moving towards automated systems and integrations throughout the office, and to complete work tasks as a more reliable and modern system of operation.
Businesses that aren’t afraid of technology will be more appealing to buyers or shareholders as they are more relevant in an adapting society than those which are stuck in the traditional methods of doing things. At the end of the day, it’s about efficiency in the mundane tasks that allows for more focus and growth in the hands-on areas of business.
Take a moment and think about the process that happens when a new employee joins the team and starts working in the office. Are there any systems in place? What is the procedure that takes them through meeting everyone, learning where the different sections of the office are, understanding how to work the coffee machine, undergoing some sort of company orientation, or explaining what the internal software and communication platforms are?
This is just one area of business that requires an office system that everyone is aware of, but the importance is that there are procedures in place and an order to every interaction that happens both within the company and externally from the company to outside business. Systems are organised processes that are in place for many reasons, liability and quality service being two of them. And the smoother your office systems are, the more valuable your business can be.
Documentation goes hand-in-hand with office systems and is also one way to increase the value of a business. It speaks organisation and effort by maintaining smooth procedures to keep the company efficient. And if you were ever wanting to sell your business, having the documents regarding your corporate finance, for example, will be able to show buyers the monetary value that has gone into the business and add to what it’s actually worth.
If you’re confident in your product or service provision, then you’ll be happy to ask your customers for their feedback and start documenting those as well. It’s one thing to have surges in your sales and profit, but it’s another thing to know if your customers are actually happy with their product. And don’t underestimate the value of happy customers.
It’s about monitoring customer growth and satisfaction by keeping track of the active number of customers, the sales and number of repeat sales per customer, and then their satisfaction feedback. These statistics are proof that what you’re doing is working and that there is value in your business.
Monitoring your recurring revenue is a great way to see how valuable your business is in the eyes of your customers and knowing where that monthly revenue comes in from should encourage you to grow that relationship and promote more of that type of business.
Your customers are important, but your employees are just as important (if not slightly more important), so if you want to boost the value of the company, you need to take care of your people. Keeping employee morale high means the company’s overall productivity and performance will also be high. Both of which play a role in increasing the value of the company.
Just as you monitor your customer satisfaction, you need to do the same for your employees and see where there’s room for improvement and where there needs to be rewards. When it comes to valuations for your business, they will be looking at employee turnover rates and length of employment, so you want to promote an employee-focussed culture in the business.
It may take time, money and effort to increase the value of your business, but it will be well worth it all.