Value creation as our primary objective of any business
Efficient ways to create value
1. Recurring Revenue
The more revenue you have from automatically recurring contracts or subscriptions, the more valuable your business will be to a buyer.
2. Something Different
Companies with a unique product or service that is difficult for a competitor to knock off are more valuable than a company that sells the same commodity as everyone else.
Value is created if your business is growing much faster than your industry overall.
If you are the darling of your industry trade media, expect to get a premium acquisition offer.
Acquirers pay a premium for companies that naturally hedge the loss of a single customer; ensure no customer amounts to more than 10 percent of your revenue.
If you’ve mastered a way to win customers and documented your sales funnel with a predictable set of conversion rates, your secret customer-acquiring formula will make your business more valuable to an acquirer than an industry peer who doesn’t have a clue where their next customer will come from.
7. Clean Books
Companies that invest in audited statements have financials that are generally viewed by acquirers as more trustworthy and therefore worth more.
8. A 2iC
Build value by having a second-in-command so that not all the power and knowledge are in the hands of the owner.
9. Happy Customers
Being able to objectively demonstrate that your customers are happy and intend to re-purchase in the future will make your business more valuable.