While many people think of the value of a company as being dictated by just its physical assets, actually a firm’s worth is determined by any number of different factors.
Often a business will achieve a higher value through its supplier and client relationships or other intangible assets such as established working practices or years of service.
These rather indefinable factors are often referred to as the goodwill of a company, and they can have an impact on the appeal of a firm from a buyer’s perspective.
Whether you’re looking to build up an enterprise to sell it on ultimately or are just interested in finding ways to add to your firm’s overall worth, here are just a few tips for how you could increase the value of your business.
Years In Operation
Clearly, you can’t speed up time, but the number of years a business has been running helps prove it is a solid market player and worthy of investment.
One of the first things a potential buyer of your company will look at it is the length of time it’s been in business – and, in particular, the number of years it’s run in profit. They will also consider whether your business has other investors and if so, what that trading looks like, for example can people invest in your business through the likes of Metatrader 4.
Of course, all companies go through lean moments from time to time, but if you can demonstrate a relatively consistent upward trend, it will go a long way to convincing buyers of the worth of your business. Moreover, even weathering the difficult times can be a positive sign of a company’s stamina and resilience.
Websites And E-Commerce Platforms
In the modern connected age, having a well-designed and optimized website can have a huge bearing on a company’s overall worth.
Pretty much all customer journeys these days start with a search on Google and having a high-ranking site under common keywords for your particular industry shows your firm is more likely to be found online by clients.
Engaging in Search Engine Optimization (SEO) on your site is the best way to ensure high listings in the search platforms and being able to prove your site ranks on the first page – or, better yet, in the top three – proves a company has a strong online profile.
Moreover, engaging in international SEO to reach out to foreign markets will demonstrate your willingness and ability to expand into overseas territories.
You should also concentrate on building a strong following across all the major social media networks – Facebook, YouTube, Twitter, Instagram and LinkedIn.
Brand Loyalty
Your company’s branding is of crucial importance for establishing its identity and building a solid customer base.
Of course, most people realize true branding goes a lot further than just a nice logo or a swanky strapline, and if you’ve been successful in building the brand of your company to the point its instilled loyalty in your market sector, it will demonstrate the firm’s likelihood of success moving forward.
Market Relationships
Customers are the essence of any business but building a strong relationship with clients takes time.
There are few things more enticing to a prospective buyer than an already-established customer base – almost a readymade, walk-in business.
Of course, running a company successfully isn’t just about selling, and if you can also prove you have good relationships with manufacturers and have an established supply chain, it also removes the potential headaches of a prospective buyer.
