How can You Boost Your Business Valuation?
Here is a taste-test of some of the items to be covered in the FREE Webinar I’m running on:
Date: Thursday 8th September, 2011
Time: 11.30am
You will discover how to BOOST your Business Valuation when I interview Business Guru, Sean Hutchinson, live from San Francisco. Sean is sensational at explaining the levers you can control to increase your business valuation. You can Register Now for your place at the FREE webinar at http://yourbusinesssuccession.com/bizval-webinar.php
In this post, we will discuss How can you Increase Earnings in a way that increases your business market valuation? Here’s how:
Lever One:
Build a Robust Financial History for your business by:
- Increasing sales, but not just any sales. Increase the sales of your products and services that add the most economic value to your business. It’s worth spending the time to understand which of your products and services are the most profitable to your business. Making more sales of products and services that are not overly profitable doesn’t make good sense. If you want to BOOST your business valuation, concentrate on increasing sales where it counts most.
- Lowering cost of goods sold means taking control of the input costs of production of your products and services, to increase profitability. You may want to renegotiate with suppliers to lock in lower in-put costs. If your business sells services, consider how you may reduce costs by making more efficient use of lower cost labour and materials. Segmenting the costs of your service offerings will allow you to understand which of your goods and or services provides the least and most economic benefit to your business.
- Controlling operating expenses Segmenting the costs of your service offerings will allow you to understand which of your services provides the least and most economic benefit to your business. Once you can clearly define the most profitable products or services sold by your business, you will be in the position to make decisions about how your business will continue forward.

Timely Factors: don’t leave it ’til the 11th hour
Understanding fully the levers that you can control and manoevering them to boost your business valuation, can take time. For some strange reason, business people too often think they don’t need to worry about it until the moment before they exit. Here are the important reasons why that’s faulty thinking:
More than half of business owners will be forced from their business due to factors they could not have imagined (statistics show 51% leave due to sudden and unplanned events).
- The sudden event means there is no time to prepare; and
- When you’re vulnerable due to unplanned events, it leaves you without power to negotiate
This means you are forced to be a ‘price taker’ and to accept whatever is offered without question.
The time it takes to build a business of value means it is not something you can leave to the last minute or just prior to exiting.
Business Boosters
In the next post of this series, stay tuned for: “How Can You Increase Earnings in a way that increases your business market valuation”, I’m going to reveal the 6 risks you must overcome in your business if you are to increase your business market valuation. You’re going to be surprised at how large a part mitigating risk in your business will BOOST and contribute to your business valuation.
Until then, make sure you register for your FREE place at the Webinar to be held on Thursday 8th Septemeber 2011 at 11.30am. You can’t afford to miss this opportunity to learn all you can about how to BOOST your business profits and valuation.
Here’s to Your Profitable Business Exit!
Leigh Riley
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