8 Drivers of Company Value

As a business owner you will be looking hard at what you need to be doing to drive up the value of your business. 

Even if you are not yet looking to sell your business, you will be constantly looking at ways to drive up your profits. Higher profits mean more opportunities to invest back into the business, which in turn drives up value. It is a virtuous cycle.

Driving up Company value

What are the areas that an ambitious business owner should be looking at? 

We have referenced the findings from The Value Builder System™ and our own insights to bring you this list:

  • Financial Performance - Your history of producing revenue and profit combined with the professionalism of your record keeping.
  • Growth Potential - Your likelihood to grow your business in the future and at what rate.
  • Switzerland Structure - How dependent your business is on any one employee, customer, or supplier.
  • Valuation Seesaw - Whether your business is a cash suck or a cash spigot.
  • Recurring Revenue - The proportion and quality of automatic, annuity-based revenue you collect each month.
  • Monopoly Control - How well differentiated your business is from competitors in your industry.
  • Customer Satisfaction - The likelihood that your customers will re-purchase and also refer you.
  • Hub & Spoke - How your business would perform if you were unexpectedly unable to work for a period of three months

How might you use this list

Our experience advising company owners in how to use this list to build value is to focus on the one list item that they think will have the greatest value in the shortest possible time within the resources that they already have.

Our advice is to jump in and do it once it is selected. Action is key. 

How did you generate Value

We would very much like to hear your story as to how you generated value in your business. Did you do any of the above or did you create your own method. We would love to hear them.

Call me on 07956 532963 or email me on rob.hook@aspen-waite.co.uk. For more about who we are please go to our website - https://aspenwaitelondon.com/ 

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