6 Things that will catapult the value of your business

In today’s video, what I’m going to do is I’m going to cover the six things that make a business irresistible to potential buyers and will catapult its value. So there’s six things that someone who wants to buy a business is looking for, and you can get right in your business to make your business worth over a million pounds.

The first one, it’s the type of customers. I’ll do separate videos on all of these anyway, but the type of customers, that’s really, really important. As you can imagine, just having one big customer is probably going to put people off because who wants to buy a business and then have that big customer leave, and then there is no business; the type of customers, therefore are very, very important.

Number two, the type of revenue in that business. You can have different types of business revenue. You can have one-off sales, you can have one-off sales with a subscription. You can have some sort of subscription-based service where people have to make some kind of investment upfront. So the type of revenue in a business is actually very important when it comes to working out how much that business is worth. That’s number two.

Number three, people want to see a sales and marketing funnel when they buy a business. A sales and marketing funnel, it’s a system that will consistently get you new customers coming in throughout the year.

Number four, they want to see a teachable system for you delivering your product or service. What that means is, if you’re a plumber, you need to have some kind of manual, which explains exactly how you’re going to do your thing; If you are a web developer, you need some kind of manual, which explains exactly how you’re going to deliver that product or service or that website. And essentially the idea behind it is you should be able to give that manual to another member of your team. And they should be able to do the job to the exact same standard you would in the exact same way, because you’ve got that manual. And that isn’t highly, highly valuable when you’re selling your business.

Number five, your team. People, when buying a business, aren’t going to pay for you and they’re not going to pay for your connections or your relationships because you’re going to be gone. So it all comes down to the quality of your team.

And finally, number six, a recruitment funnel. What a recruitment funnel is, is it’s a way that where you can consistently get in good quality members of staff who fit the culture of your business. And people will pay a lot of money for a business that has one of those.

So those are the six things. Type of customers, type of revenue, making sure your sales and marketing funnel, making sure you’ve got a manual with a teachable system to deliver what you do. Just gone over through this, the quality of your team and having a recruitment funnel so you can keep building that team.