Growing a Business

You may be asking, why do I need to understand the value of my business while I am in the process of growing it?

Think of a valuation as a check-up with your doctor. As with your health, you should be considering the state of your business year-after-year. Why? As a business owner, you should be obsessed with tracking performance and understanding if the direction you are heading is adding value to your business or detracting from it.

A business valuation can help you understand where your business stands today and the potential for growth. A valuation gives insight into the strengths and weaknesses of your company, value drivers, and how a potential buyer will view your business.

Through a business appraisal, you can develop strategies to grow your business.

 

Every business owner should obtain a yearly business valuation that can be referred to. A business valuation provides multiple facts and figures regarding the value of a company by observing market data, asset values, and the company’s cash flows. This enables you to measure growth and plan for the future.

 

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As valuation professionals, we are asked daily: 

 

“What is the value of my company today?” 

 

A business valuation can assist you in understanding the value of your business and the potential value drivers to focus on to help build value in your business. This can help you maximize the value by the time you are ready to exit or sell your business.

 

Initial Considerations

 

We all understand that if a company decreases its expenses and/or increases revenue, the value of the company increases. When it comes to business valuations, the value of a company is not that simple. Our valuation specialists look at the history of the financials and factors like revenue growth in order to select guideline transaction multiples. Understanding how someone like a valuation specialist views the value will help you see what truly matters. The need to build value and then instituting changes to grow that value is different. We provide you with the value of the business and then point out ways in which to grow your business.

 

Below are a couple of items that you can implement now in order to increase the value of your business:

  • Increase profitability
      • Identify expenses that are currently incurred that could be easily eliminated or switched out
      • Grow intangible assets
        • This could be through your CRM system or proprietary technology, etc.
      • Increase employee retention
        • Ultimately, the cost of training and replacing can far outweigh paying your employee a higher salary
      • Diversify revenue through new revenue streams
        • This may be more difficult to do, but by understanding the needs of your customers, you can identify new products and services to offer
      • Create your Dream 100 list
        • Identify future prospects in the market and work to ensure that you land them as clients
  • Simplify
      • Systems, systems, systems
        • Establish simple, but detailed systems for the following:
          • Human Resources: how do you search, find, hire, orient, manage, review, promote, retain, and fire people
          • Marketing: how is your message communicated to your target audience leading them to buy your product
          • Sales: how do you convert a lead into a customer
          • Operations: how do you provide your service or make your product for your customer
          • Accounting: what is your current method for tracking the money
          • Customer-retention: how do you take care of your customers
  • Organize
    • If you are working with paper, this needs to stop. All the documents should be neatly cataloged through a secured cloud storage

 

A business valuation expert through the valuation process will point out where you could improve. Ultimately, the primary area that we have seen increase value is in the systems of the company. The more documented these systems are, the more tuned in the hired workforce can execute efficiently. The ability for a potential buyer to inherit these systems is key. While you create these systems, you will personally notice inefficiencies in your company that you can tweek today.

 

If you would like direction, Peak Business Valuation, offers a complimentary consultation, enabling you to discuss with us your business and how a business valuation might help you grow the business.

 

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Kelli and Ryan Hutchins, co-founders of Peak Business Valuation recently wrote an ebook to help you grow your business and maximize the value of your company. 

Top Business Appraisor Utah Small Business Covid

 

 

In Skyrocketing Your Business Value, you will uncover the secrets of small business growth and build a business that thrives. Learn the secrets to boosting cash flow, transforming customers into returning buyers and raging fans, creating recurring revenue streams, plus much more! You can download your copy or purchase a copy through Amazon today! 

 

 

 

Uncover the Secrets of Small 

Business Growth 

…and Build a Business That Thrives

 

Get your copy of Skyrocketing Your Business Value

 

Inside this book you will discover the secrets to:

 

Cash Flow: Cash flow is the lifeblood of any and every business. Developing strategies that allow you to not only boost cash flow, but manage it skillfully is ultimately where the power to scale lies.

 

Customer Loyalty: Transforming customers into returning buyers and raging fans is what will set you apart from everyone else in the market. Customer loyalty is VITAL in skyrocketing the value of your business.

 

Recurring Revenue: Understanding the value of your business is crucial in tracking the health of your company. Creating recurring revenue streams within your business will allow you to accurately predict future profitability.

 

& Much More to Skyrocket Profits & Accelerate Growth

Get your copy of Skyrocketing Your Business Value

 

Peak Business Valuation has worked with dozens of small businesses across the country. We understand what it takes to take your business to the next level and maximize the value of your company when it is time to sell. Through our ebook, free consultation, and a business valuation we seek to give you as much added value as possible. We want to help your small business thrive!

 

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