The BizFilings blog covering business tips and trends.
Rising to the Top, How You Can Enhance the Value of Your Company
Published on Mar 18, 2013
Read 'Rising to the Top, How You Can Enhance the Value of Your Company' at 'Time to Start Up,' the small business blog by BizFilings.
Successful business owners have a great appreciation for increasing the value of their company.
After all, they know that a strong valuation will make a significant difference when it comes to attracting the best employees, cutting the best deal in a partnership or selling their company for top dollar.
There are many ways for entrepreneurs to grow their company’s value, and here are some helpful tips to ensure you’re headed in the right direction:
Generate recurring revenue. When a small business has developed a base of repeat customers, it’s an excellent sign of market leadership, as well as evidence that the business has the right recipe for success.
Develop strong relationships with the media. While confidence in the media has arguably eroded in recent years, there are still plenty of potential customers, investors and partners who trust the media. The media can be a very powerful tool for companies in a crowded field. Take the Austin startup CyBerCorp, for example. A purveyor of electronic stock trading technology, CyBerCorp was one of hundreds in its market. However, in the spring of 1999, the executives behind the small company got their big break – a story on the front page of USA Today. Additional coverage on CNBC and the New York Times vaulted the company to the top of the heap, allowing the company to name the terms of its partnerships. Many suitors came calling, and in the end, Charles Schwab, Inc. bought the company for $500 million.
Hire a chief operating officer. Although this might not always be true, entrepreneurs are typically viewed as big-picture visionaries who lack attention to the small details. Hiring a COO emphasizes the seriousness of the corporate endeavor; this entrepreneur and his or her business are here to stay.
Nurture a competitive advantage. Nothing bolsters a small company’s competitive standing quite like possessing a ‘secret sauce.’ This is especially true if the sauce has something to do with technology. The aforementioned CyBerCorp for example, claimed it could get the best prices for online stock traders because it had a unique technology that would connect all the buyers to one large pool.
Position the entrepreneur as an expert and demonstrate thought leadership in the market. Whether it is a speaking engagement at a trade show, or a bylined article in a local business journal, positioning the entrepreneur as an expert can add credibility to the company and therefore enhance the value of the business.