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How To Build A Valuable Business
There are many different reasons for starting a business, but one of these reasons is to build it up into something extraordinary, and then sell it for a nice profit; this is something that about 50 percent of all business owners eventually do. After that, depending on how much money you’ve made on the deal, you can retire (potentially much earlier than if you had stayed working), or start a brand new business and begin the process all over again. The choice is yours, and selling a profitable business will certainly give you plenty of options.
If this does sound ideal, you will want to maximize your potential gain by making your business a truly valuable one. Here are some ways you can go about doing this.
Spend Carefully
One of the most important things you can do when you are building up a business to sell it on is to spend carefully. Having a budget in place as well as a business plan that details every area in which you are going to need to spend anything, as well as how much if possible, is going to be immensely helpful for you and for anyone who buys the business when you’re ready to sell, so ensure this is a task you complete right at the start.
When you do spend money (which is going to have to happen if you want to build the business), you must think about the quality of what you’re buying. This may mean spending more initially, but this will pay dividends over time as the item you buy will last for longer and you won’t have to replace it. It might cost more to purchase custom cable assemblies or high-quality machinery, but it will undoubtedly be worth it in the end.
Create Recurring Revenue
Recurring revenue is something anyone who wants to buy a business is going to be looking for. It’s great to make sales, and this is important, but if you have a good amount of recurring revenue on top of new sales, you can show your business is stable and will continue to make a profit in the future – exactly what someone hoping to buy is going to want.
There are many ways to create recurring income, including:
· Ensuring you offer excellent customer service so buyers will return
· Setting up a subscription service for goods or services
· Selling something that requires additional purchases on a regular basis (i.e. printer ink, food refills)
Have A USP
“The best USP of any product is the enthusiasm and confidence of a salesperson…”
― Shahenshah Hafeez Khan
USP stands for ‘unique selling proposition’, and it is essentially what makes your business stand apart from the rest. If you have a good USP, something that can continue after you sell the business, more people will be interested in buying from you. After all, you’ve already done the hard work, and they simply need to continue that work and enhance your USP where possible.
Your USP is, as the name suggests, going to be unique to your business, but ideas to consider include offering a unique service, having excellent special offers, giving talks and workshops, creating explainer videos, and more.