When you start a business, you may not be looking too far ahead. You’ll want to work out how to grow that business, and ideally, you’ll have at least a five-year plan, but any further on that that you might not have thought about yet.
What most people do at some point is sell their business. Either that or they will hand over the reins to someone else, keeping a share of the business to receive an income through dividends. Either way, you’ll need to have built a valuable business in the past to ensure that someone will want to buy it or that someone will want to run it (and that it will make enough to pay you). With that in mind, here are some ways to build a valuable business.
Have A USP
Your business’s USP (unique selling proposition) is something that could be what makes your business valuable to someone else (and to you all the time you’re running it). Your USP is what makes you different from everyone else, so it’s the thing that’s going to not only attract customers but a buyer too when the time is right.
You don’t have to sell something unique to have a good USP. You can sell the same products and services as another business, but if your USP is a better, more exciting one, then it’s your business that will grow and become valuable. USPs can include:
- Excellent customer service
- A well-designed website
- Special offers
- Offering knowledge in the form of eBooks, blogs, videos, and talks
When you know what your USP is, it needs to be front and center in all you do. Speak to a digital marketing agency in Orlando to ensure that whatever it is that makes you different and helps you stand out is a big part of your marketing campaigns.
If the cash flow within your business is bad (that is, if you have more money going out than coming in), then it makes no difference how much profit you’re making or what your turnover is – it is going to be hard to prove that your business is a valuable one if it’s essentially losing money and if it’s a struggle to keep paying the bills.
Therefore, you need to ensure you are spending as carefully as possible. The less you can spend, the better your cash flow, and although at times it will be necessary to spend more, if you’re generally being careful and considering each transaction before making a decision, then this additional spending once in a while should not be an issue.
However, trying to save money by buying poor-quality items is never a good idea; this can cost you more in the long term, which is why proper consideration should be given to each purchase and everyone outgoing.
Create Recurring Revenue
When you run a business, any sale is a good sale (as long as it makes a profit, and even when it’s a loss leader product, it can be a positive thing if it entices the buyer back for more). However, although one-off sales are great and will bring you money, what really makes a valuable business is the recurring sales because they will bring you a consistent revenue stream, and that means you’re making money without having to spend any, the ideal for any business.
Having a source of guaranteed income added to the profits from individual sales means you can build your business quickly and that it will have a value for anyone who wants to buy it. After all, this revenue stream means they can step into the business owner’s position and be making money right away.
Interesting related article: “What is Digital Marketing?“