The value of your business probably isn’t what you think it is. The truth is that you have a vested interest in your business. It is personal, so you attribute more value to it than a potential buyer. It is important to set apart your personal desires and beliefs about your business and to look at it objectively.
1. Build It to Sell
Take a look at your business and determine what might make it more valuable. For example, can you implement a system of consistent cash flow like a membership site or an autoresponder series that converts automatically and keeps people in your sales funnel? Can you build your traffic and email list so that they might look quite appealing to an outsider? Once you’ve determined what is most valuable about your business, spend time growing it. Make it more appealing to a potential buyer.
2. Clean It Up
Evaluate your processes and systems and implement tactics to streamline your business. If someone can literally slide right into your business and start making money, they’ll value it more than a business where they have to make a lot of initial changes.
3. Get Help
The value of your business doesn’t have much to do with how much money you put into it or what you started it with. Instead, potential buyers want to know what your monthly profits and expenses are. They want to look at your profits for the past few years and also what the potential is for growth. There are different ways to value a business including assets, multipliers, and income capitalisation. It can be difficult to determine the value of a business. Consider getting outside help.
If you are interested in exploring a merger or sales opportunity, please contact me, I am always on the lookout. We can have a no obligation chat about your business to see if there’s a way for us to work together, or I can look into my contacts to see if I can connect you with anyone that would be better suited to help you.