Do you want to create a valuable business?

People start their businesses for all types of reasons. Some start in order to create financial freedom. Others may start because they have a great idea that they haven’t seen in the marketplace. And, some want to create a legacy or make a positive change in their industry. Your reasons could be all, some, or other reasons for starting your business.

But whatever your reason is, this question is relevant to consider:

Do you want to create a valuable business?

What does valuable mean?

In this case, I mean a business that you enjoy working in and has the structure to be worth something to someone else. IE. you could sell it for a nice profit if you wanted to. Or, you could pass it down to the next generation, or to your employees. OR you could move into an oversight role and keep the business as an asset while you focus on other things. Wouldn’t it be nice to be in a situation where you had options?

Valuable here is: Valuable to you and valuable to others.

In order to create a valuable business consider these things this year:

1. Be selective about where your revenue comes from. A bigger company is not necessarily a more valuable one if the extra sales come from products and services that are too reliant on you (the business owner) to deliver them. Consider growth from areas that don’t involve your direct involvement.

2. Sell less to more people. The most valuable companies have a niche selling a few differentiated products and services to many customers. The least valuable businesses sell lots of undifferentiated products and services to a concentrated group of buyers.

3. Consider adding recurring revenue as a portion of your overall revenue. Predictable sales from subscriptions or recurring contracts mean less stress in the short term and a more valuable business over the long run.

4. Be different. Refine your marketing strategy to emphasize the point of differentiation that customers value. Be relentless in highlighting this advantage.

5. Find a backup supplier for your most critical raw materials. Consider placing a small order to establish a commercial relationship and diversify the sources of your most-difficult-to-find materials.

6. What if a highly-skilled employee left? Consider how reliant you are on certain employees. How would you fill a role if a key employee left? Consider documenting important processes, cross-training, or even have a plan (process) of where you could go to hire someone with a similar skill set.

7. Empower your employees. Answer frequent employee questions of you with “What would you do if you owned the business?” Your goal should be to cultivate employees who think like owners so they can start answering their own questions without coming to you.

A company that has the above attributes is not only more valuable but is a more enjoyable company to run.

If you’re looking to add more value to your business in 2021, then reach out to me or hit reply and we can take a look at where your business might focus to add value.

NOW is YOUR time.

Ariana

PS: If building a valuable business is important to you, hit reply, and let’s chat.

Halifax Business Coach, Nova Scotia, Canada. Leadership Coach. Executive Coach.