Jamiesons - Business Brokers - Business Sales - Jamieson Business Valuations

How to add value to your business

When selling a business the first consideration in relating to value is given to the tangible items such as plant and equipment, stock, buildings, staff and of course financial performance.

There's also another aspect worth considering - intangible assets that can increase the market value of your business.

Working on them can ensure you receive the maximum return when you decide to sell.
Intangible assets are defined simply as assets that are not of a physical nature and include the following:

• Culture and values to meet challenges

Ensuring your business has the culture and values to meet its present challenges and has defined goals to capitalise on future opportunities is an aspect that undoubtedly gives a prospective buyer confidence in the business.

Having the ability to confront challenges means constantly evaluating where the business is at present and what needs to be done better, including being more creative and innovative.

• Acquire and retain knowledge

Businesses need to acquire knowledge resources to remain competitive and for future growth.

There needs to be a broad understanding across the business of how these resources are used effectively. Most importantly, knowledge that is unique to your business should be protected.

• Develop skills and competencies

Provide your employees with the opportunities to increase their skill and competency levels to meet the current and future needs of the business. When required, take on additional skilled people to meet new challenges and help grow the business.

Once again, a company with a definite program and history of developing skills and competencies is one that gives a buyer a greater level of confidence.

• Lead and communicate

Establishing clear goals and aims for your business, remain actively involved in change processes while delegating and motivating employees to achieve goal clearly communicate this throughout the business and also to outside stakeholders.

• Processes and Systems

To remain competitive the business needs to have in place processes and systems that support all its activities and meet the demands placed on it. Having them in place and in writing is a great asset as it ensures procedures will be followed after you've sold.

The right processes and systems contribute to overall efficiency and enhance the value of the business.

• Build relationships

Build on existing relationships, especially with existing customers.

This can be strongly reflected in the value of a business as continuing repeat business from past customers not only shows up in sales turnover but your cost of sale reduces.

This is because it's a well known fact that the cost of obtaining a repeat purchase is 5- 8 times less than that of obtaining a new client.

• Reputation and Trust

These play a key role in how competitive a business is and need constant attention so that the business is viewed favorably.

Crucial to this is identifying risks, both present and future that may harm the reputation of the business.

About Jamieson Corporate Services

For over 20 years Jamieson Corporate Services has provided business valuation and broking services to owners and managers of private businesses.

Our principals are licensed as business agents by the NSW office of Fair Trading.

The firm is a member of the Australian Institute of Business Brokers and the Real Estate Institute of NSW.

Further information is available from our website: www.jamiesons.com.au

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