When considering the value of your company, there are basic value drivers. While it is difficult to place a specific value on them, they give the company a competitive advantage in the market. What are your company’s key value drivers?
| Value Driver | Low | Medium | High |
|---|---|---|---|
| Business Type | Little Demand | Some Demand | High Demand |
| Business Growth | Low | Steady | High & Steady |
| Market Share | Small | Steady Growth | Large & Growing |
| Profits | Unsteady | Consistent | Good & Steady |
| Management | Under Staffed | Okay | Above Average |
| Financials | Compiled | Reviewed | Audited |
| Customer Base | Not Steady | Fairly Steady | Wide & Growing |
| Litigation | Some | Occasionally | None in Years |
| Sales | No Growth | Some Growth | Good Growth |
| Industry Trend | Okay | Some Growth | Good Growth |
The possible value drivers are endless, but a close look at the ones above should give you some idea of where your business stands. Don’t compare against businesses in general, but specifically consider the competition.
It is important for a business owner to identify and understand the value drivers of their company. They give the company a competitive advantage which makes it extremely appealing to a potential buyer.
As part of your exit strategy, what can you do to improve your company?