How to Force the Sales Price of Your Business to Your Dream Price
Marv White provides five keys to increasing the price you get for your business. In this excellent article, he explains about transferability of the owner’s skills, the maintaining of good financial records, the reducing of customer concentration and the other key value-adders.
Contrary to popular belief it’s not all about earnings (and it’s definitely not all about “potential”).
Marv ends with the one single best way to substantially increase the price you get for your business … and it’s so true that it’s amazing more business vendors don’t actually use it. Do they see it as too much trouble?
Managing the Sales Price of Your Business is necessary to get the price you deserve for your business. Whether you plan to sell your business in 3 months or 30 years, it’s time to start managing the valuation of your business. It should be an essential function in how your business is operated. You shouldn’t just be selling products and services, but also boosting the value of the enterprise. Even if you are never going to sell, you must always consider the impact of business decisions and strategy versus the effect on the business’ value.
It’s worth a read. Find the article here