Based on our work over many years with clients, there are several simple things you can do to maximise the value of your business. Let’s start with 5 internal factors that most business owners ignore:
1. Size – size does matter – businesses with a turnover of $5m or more sell for higher multiples.
2. Business model – is your business boutique or scale and even more importantly is every aspect of your business – customer service, online presence, the people you employ, your pricing strategy, your office location/fit-out and your marketing materials – aligned with your model?
3. Revenue – recurring revenue is worth more. Do you have clients on long-term retainers, extended contracts, or some type of residual income trail?
4. Sales and marketing – your business needs to be able to generate new business, leads, enquiry and ultimately sales without relying on either you or a key person’s skill and sales ability. All businesses need a sales and marketing machine that runs independently.
5. Systems – Save Yourself Time, Effort & Money – not only are systemised businesses far simpler to run, far less stressful and generally far less risky but they are also more valuable.