How to build a valuable business

There could have been many reasons why you started your business. Some people want to do it for the challenge, and others because they like the idea of working for themselves. Another idea is to build something to pass to the next generation or, something that is very popular, to build the business up in order to sell it. If this last item is your preferred reason, then you will want to make your business as valuable as possible. Read on to find out how to do it. 

Have Recurring Revenue 

While one off sales are great, and will bring in a good amount of money to your business if you are positioned right and ensure you are making a profit, having recurring business is something that will truly add value to your business. 

Recurring revenue is income that is paid on a regular basis. It might be annually, monthly, weekly, or anything else. If you have a number of customers paying in this way, you can much more easily forecast your profits for the year, and you’ll have a good idea of how much you’ll have to spend each month. 

There are a number of ways to set up recurring revenue.  One idea is to have a subscription service on offer, and another is to offer a payment plan to your customers so they can split their payments over time. 

Have a Great Team 

Something that can be off-putting to potential buyers when you come to sell your business is if you are the only one working in it. They might worry that the business is really you, and if you were no longer there, it could lose its most important asset. 

Therefore, as you build your business, it’s a good idea to have a great team in place around you. Not only will this mean you can step back a little and have a better work life balance, but it also means that, when someone buys the business, they won’t be losing out. Your team will know the right systems and will be able to continue running the business. 

If you don’t want to employ people, then having an external team on hand could be a good alternative. Outsourcing to a transcription company, a bookkeeper, a marketing expert, a social media manager and so on, will mean that even if you leave, nothing will change.

Have aUSP 

If you have a good USP (unique selling point) for your business then you will be able to rise above the competition. This will be an attractive proposition for anyone looking to buy a business; if you are already at or near the top, they will need to invest less time and money once they own the company. 

Again, make sure that the USP is not you, but is something to do with the business itself. Work on honing this USP to perfection, and ensure that the public know all about it. That way, if the sale goes the right way, they shouldn’t even notice that anything has changed.