Building the value of your company gives you a killer advantage in the game of life. You can choose to sell if you get an outlandish offer or sleep well at night knowing you could sell.
The hallmark of a valuable company is one that runs without you, which means if you can create a business that’s built to sell, you also have the option to hold on to it without the stress of running your company day-to-day.
A valuable business is also a sought-after asset making it more likely that you get an unsolicited offer for your business. This gives you negotiating leverage when you decide to sell.
After analyzing tens of thousands of businesses, we’ve discovered eight factors that drive the value of your business:
Financial Performance
Your history of producing revenue and profit combined with the professionalism of your record keeping.
Financial Performance
Growth Potential
Your likelihood to grow your business in the future and at what rate.
Growth Potential
Switzerland Structure
How dependent your business is on any one employee, customer or supplier.
Switzerland Structure
Valuation Teeter-Totter
Whether your business is a cash suck or a cash spigot.
Valuation Teeter-Totter
Recurring Revenue
The proportion and quality of automatic, annuity-based revenue you collect each month.
Recurring Revenue
Monopoly Control
How well differentiated your business is from competitors in your industry.
Monopoly Control
Customer Satisfaction
The likelihood that your customers will re-purchase and also refer you.
Customer Satisfaction
Hub & Spoke
How your business would perform if you were unexpectedly unable to work for a period of three months.
Hub & Spoke