5 Tips to Increase the Value of Your Business

How can you increase the value of your business before selling? 

1. Keep Great Books and Records

If you can’t verify your income, the business will not be valuable.  Many companies lack reliable financial reporting to such an extent that buyers can’t determine what the company has or track the source of its revenues.It’s important to have a great CPA or bookkeeper. Payroll is also an area that should be handled by a professional.

2. Grow your earnings before you Sell

Buyers look for companies whose cash flow is increasing year over year. They want to see upward trends. One of the biggest mistakes business owners make is to take their foot off the accelerator, after deciding to exit. The moment you stop investing in new equipment, maintenance and process improvements is the moment you start reducing the future value of your company.

3. Have Proper Management or Staff in Place

The business owner should transition out of as many roles as you can.  Work to solve any internal conflicts and strive to keep employee turnover rate low before your sell. A strong, professional team, adds value to the business.

4. Make Sure The Physical Location Looks Its Best

Keep up to date the physical structure of the business.If you've been considering any minor renovations, such as a fresh coat of paint, you want to make them before you list the business. These changes will attract more buyers to the business. 

5. Freshen Up Your Website

The website is a buyers first impression into your business. Buyers expect your business to have visual appeal that correlates to the amount of money you make. Improving your website is well worth the return on investment. A lean website will scare away buyers.