Here are some key factors to help you improve the value of your company.
The first key is to get your company’s financials in order. Have your accountant take a look at your accounting procedures and make recommendations on how to improve them. This is very important in establishing the value of your firm.
The second key is to review the image, reputation, and marketing materials of your company. The quality of your product or service is vital, but how your firm presents itself to clients, customers, and the outside world, is also very important. The kind of first impressions like the appearance of your facilities and how people are treated on the telephone or waiting area, are critical in dealing with your customers or clients. Don’t forget about your website. It is often the initial introduction to your company. Now may be the time to update your marketing materials. The image of a company can improve customer service and impress those that you deal with. All of this can increase the value of your company.
A third key is to sell off any extra assets such as unused or outmoded equipment. Use the proceeds in the business. If there are any assets that should not be included in the value of the company, such as real estate or personal vehicles, you may want to separate them from the assets of the company. A prospective purchaser expects everything they see to be included in the sale.
A fourth key is to resolve any pending items. If the company has a trademark on any of the important products, and the paperwork for filing hasn’t been completed, now is the time to complete the filing. Trademarks, copyrights, patents, etc., can be very valuable, but only if they have been properly recorded.
Agreements, contracts, leases, and the like should be reviewed. Take the appropriate action to extend them if needed. If a contract with a customer or a lease is scheduled to expire soon, get it renewed now. This adds value to the company. Do your key employees have employment agreements?
The key factors outlined above not only build value, but they also increase the bottom line. A professional business intermediary can help with other factors that can influence the value of the business.