Getting to the Heart of Business Valuation - V (Tips to increase Value of Business)
‘Getting to the Heart of Business Valuation -5 part Series’ helps you grasp the core fundamentals of business valuation procedure. Areas covered were selecting the right business valuator, types of business valuation, checklists of documents and information to keep ready for business valuation and finally we discussed the business valuation process.
We conclude this mini 5 part series, with this last topic which highlights essential tips to increase value of business to ensure business sale is favorable.
Check out the following healthy signs, and then listen to the heartbeat of your own business and its leadership style:
Optimistic Attitude
Many business owners today are more pragmatic and take pride in being less of an “incurable optimist.” In a world driven by technology and scientific analysis, it’s easy to forget the importance of the right attitude. If business owners aren’t positive, how can they expect customers and employers to be? The owner who believes business is bad will probably not see it getting any better.
How to project a positive attitude? Begin with the easiest. Sprucing up the place of business with fresh paint, newly-cleaned carpeting, well-stocked shelves, for example, will say a lot for the health of a company. Less visible, but highly important, is a positive outlook on the future of the business. Business owners should be prepared to spend what it takes to generate new business, and should take the time to outline new possibilities for long-range success. If the company currently has no mission statement or business plan, creating one will speak volumes about owner’s enthusiasm for the future of the operation. This will make the overall profile very attractive to prospective business buyers.
Healthy Managerial Style
In the modern workplace, where you can hardly see the business through the forest of “managers,” it’s good to get back to basics. Too often owners get bogged down in busy work, or in “managing the managers.” Owners who put themselves in the trenches are in touch with the business -- and this first-hand understanding will be evident to anyone taking stock of the company’s worth.
An equally healthy approach to managing is preparing for contingencies. The owner’s style should include appropriate delegation of duties and a backup managerial plan in case of unforeseen calamity.
And finally, owners should project a general sense of well-being and energy. Give valid reasons to make a killing at the negotiation table and sell a business at good price by showing futuristic opportunities to grow. Anyone taking stock of a business will draw a quick impression from the very posture and tone of voice the owner presents.
Conspicuous Image
To foster the image of an on-going, healthy business concern, business owners need to keep their image prominent before the public. Advertising can build image at the same time it attracts business. Anything from a display ad within the yellow pages listings, to a monthly company newsletter, to the offering free seminars, can portray the business as more than just the sum of its products.
Community Involvement
To further promote the business -- and its owner -- as a rock-solid and permanent part of the local scene, there are opportunities just waiting to be tapped. Taking an active role in the Chamber of Commerce, trade or service associations, and sponsorship of worthy local events is great public relations.
To find the real value of a business, go to its very heart: the attitude, work habits, managerial style, customer/marketplace savvy, and community reputation of the person in charge. The business owner or manager is the final, and most cogent, indicator of business worth.
Dollars and cents will always be important in establishing value, but it’s a kind of people-sense that will give the truest meaning for business value. Establish value for your business in truest sense and see the market value soar and overall win-win situation while selling business!
