5 Internal Factors that Affect the Value of Your Business

Based on our work over many years with clients, there are several simple things you can do to maximise the value of your business. Let’s start with 5 internal factors that most business owners ignore:

1. Size – size does matter – businesses with a turnover of $5m or more sell for higher multiples.

2. Business model – is your business boutique or scale and even more importantly is every aspect of your business – customer service, online presence, the people you employ, your pricing strategy, your office location/fit-out and your marketing materials – aligned with your model?

3. Revenue – recurring revenue is worth more. Do you have clients on long-term retainers, extended contracts, or some type of residual income trail?

4. Sales and marketing – your business needs to be able to generate new business, leads, enquiry and ultimately sales without relying on either you or a key person’s skill and sales ability. All businesses need a sales and marketing machine that runs independently.

5. Systems – Save Yourself Time, Effort & Money – not only are systemised businesses far simpler to run, far less stressful and generally far less risky but they are also more valuable.

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