What Are The Keys To Valuing Your Business?

Creating business value normally requires that the business owner be intentional about their business. That means there’s a business plan, business strategy, and an exit strategy. The business value has various elements, including:

Profitability – Assuming the owner wants to make money, showing a nice profit is first and foremost.

Accurate financial record keeping – This is critical to ensure that the business is operating the way you think it is. It can identify problem areas and opportunities.

Reporting income – Hiding income is a great way to go to jail and lose value.

Diverse clientele – If Walmart is your only customer, start planning your next venture.

Quality service – Having a quality business will lead to new customers through steady referrals.

Social media presence – Everyone will look for a website, Facebook, LinkedIn, Twitter, etc. Strive for more online activity.

Management structure –  The owner can’t/shouldn’t run the whole business by themselves. If the owner is delegating more to trusted staff, buyers will have more interest.

Positive growth trends, barriers to entry, no legal issues, and more…

Profitable businesses can still have poor marketability, so understanding how buyers look at businesses is really important PRIOR to trying to sell.

If you or someone you know is interested in buying or selling a business, please call us at 913-383-2671 or contact one of our Apex Business Advisors today!