If you are thinking about selling your business or simply desire to make your business more valuable, you can do more than strictly focus on the bottom line. Though profitability is certainly the most important aspect of any business, prospective buyers and investors are looking for a business with legitimate value that has staying power. Let’s take a quick look at the best ways to up the value of your business.
Make Your Employees “Utility” Players
Those who follow baseball understand the value of a “utility” player. These athletes are capable of playing just about every position on the field. Your business should be the same way. Hire talented individuals with a willingness to learn and they will be more than happy to fill in for others when necessary. This way, if an important employee leaves for another job or falls ill, another team member can step in without missing a beat. Clients crave this reliability in service and product providers.
Employee fungibility ensures you do not have to step in whenever there is an employee out sick or on vacation; another employee who understands the basics of other positions will be able to fill in and perform essential duties in a seamless manner. As long as you provide your team with the proper training, they should be willing to pitch in whenever and wherever necessary.
Be Faster Than the Competition
As is often said, your time is your money. The longer customers have to wait for a service or product, the less likely they are to be repeat customers. Be creative and find ways to deliver value faster than the competition and your business really will be that much more valuable. The bottom line is attention spans and patience are shrinking as we segue to an increasingly high tech era. This is an on-demand society in which people want their products and services now. The average client believes there is a meaningful correlation between the speed of service and the value of the offering. Pick up the pace, beat the competition and you will attract a steady stream of customers.
Create a Meritocracy at Your Workplace
Competition makes life better for everyone. Dangle some form of positive reinforcement for your staff and they will work that much harder, boosting the value of your business even more. If your employees meet their targets for productivity, sales or another metric, the business makes more money. Just as important is the fact that hardworking employees provided with positive reinforcement will feel as though their efforts are genuinely appreciated. Appreciated employees are more likely to stay for the long haul, ultimately minimizing your turnover for a considerable cost savings.
Strive to Provide Unique Offerings
The best businesses are constantly striving to bring something new to the marketplace. If your business does not provide anything unique, you will lose market share to competitors. Alternatively, if your team keeps pushing to innovate and bring new products and/or services to the market, you will be able to command a higher price customers are more than happy to pay.
Be Strategic With Every Business Decision
The moral of the story is every business owner and manager should have an overarching strategy that guides their decisions. Strive to boost the value of your business with each passing day and it will not be long until your company is worth significantly more. Even if you do not plan on selling your business right away, increasing your company’s value makes it easier to attract partners and potential new investors. A business with that much more value also provides employees with job security. Perhaps most importantly, increasing your business’s value will help you make that much more money and ultimately up the value of your enterprise.