1: Financial Performance
A basic principle of a good business is determined by how much revenue you bring in and how much profit that revenue is turned into. Revenue, expenses, and resulting profit must consistently be examined for opportunities to improve.
2: Growth Potential
While yesterday is important, tomorrow is almost more so, particularly when we talk about growth. Your company’s ability to grow consistently and predictably will be the reason a third-party may have interest in investing or purchasing your company.
3: The Switzerland Structure
The world knows Switzerland as the neutral party, and when a company is evaluated to determine its strength, one of the important underlining elements to understand is whether or not the company is overly reliant on any one employee, supplier, or customer. When those situations exist, it puts the company in a compromising position should something happen to the employee, supplier, or customer.
4: The Valuation Teeter-Totter
If a business is able to create regular, consistent cash flow, minimizing the constant need for cash infusions, the business operates more smoothly, and its value benefits.
5: The Hierarchy of Recurring Revenue
Predictability of sales and the resultant revenue is very important when looking at the potential value of a company. When your revenue is predictable, business value benefits.
6: The Monopoly Control
When your products are unique, when your service is exceptional, or when your firm is the best in the marketplace at what it does, this creates differentiation and distance between you and the competition. The more this exists with your business, the more valuable it is.
7: Customer Satisfaction
Do your clients like your service? Do they like your products? How about the experiences they have with your employees? Satisfaction is important to understand, and so is understanding your clients’ willingness to refer you to someone they know. Not sure? Find out today and help drive up your company’s value.
8: Hub & Spoke
Can your business operate without you or do you need to be involved in everything – every decision, every client, every day? If you’re involved in everything, what happens when you’re not there, whether a vacation or a long-term illness? Things will likely suffer, even potentially putting your business at risk to survive. Not only do your employees, suppliers, and clients suffer when this happens, so does the value of your company.