Entrepreneurs start businesses for many different reasons. Some might want to build something for the future, a legacy for their children to take over. Otherwise, some might want a secure job, or perhaps they want to make something out of nothing.
Another reason to start a business is to build it up into something that has value and then sell it, to fund a lifestyle or for retirement. In order to do this, the business needs to have that value by the time it comes to be sold. Here are some useful tips on how to build a business that has real value.
Take Care Of The Pennies
There is a saying that goes: “take care of the pennies, and the pounds will look after themselves.” When it comes to business, this is certainly an idea to take to heart. If you take care of the smaller costs by making sure you are getting a good deal from suppliers, or by checking Utility Bidder for the best-priced business electricity suppliers, then you will have more money to spend on marketing and hiring the right employees.
Small savings can lead to bigger budgets, and by spending money in the right places you can really build up value in a business.
It’s good to have one off transactions – all sales are good. However, what’s even better is to have regular recurring transactions; these are ideal for building up value. Not only do they mean you can more easily track and forecast your business income, but you can also build up profits. Both of these will make your business more interesting to a potential buyer further down the road.
You might have a system by which you can set up these recurring revenues to take place automatically, such as a direct debit on a monthly basis. Subscriptions like this are hugely valuable, and if you can make what you offer interesting and different, your subscribers will stay with you for longer.
If you want a valuable business that someone is going to be interested in taking over and buying some day in the future, you need to have a great USP. Your USP (unique selling position or proposition) is what makes you stand apart from everyone else, and it is this that will bring customers to you rather than someone else.
You don’t have to be selling something totally different to everyone else; it might be that you are selling the same things but in a different way. Your USP might be your excellent, personal customer service. It could be your fantastic team that is able to get the work done smoothly and efficiently. It could be anything at all.
What it should not be, however, if you want to build value, is you. You are going to be stepping away from the business, so it’s best to ensure that your USP does not revolve around you, but is something different. If it is about you, you will need to put systems in place to ensure that others can replicate what you do.