Boost your business value quickly
There are many ways you can create value over time.
To stay ahead of the competition your business needs to continually adapt and innovate – to create value as it grows. There are many ways you can create value over time, so that you can retire in style or move onto your next venture.
The key to creating value in your business is effective forward planning. Take time to develop a plan that addresses the areas of your business that need to increase in value.
The more assets your business has, the more valuable it’ll be. You’ll need to weigh up the advantages of owning versus the benefits of leasing. If you choose to own the majority of your business’s assets, you’ll inevitably:
It’s important that your assets are in good condition, so make sure you have a regular maintenance program in place.
Intangible assets are the ones you can’t physically touch, such as intellectual property (IP) – the knowledge held by your staff and your customer database. They make up a large part of your asset base, so it’s important to take steps to protect them.
By clarifying ownership of your company's IP you can minimize the risk of your employees taking IP with them when they leave. Restrictive covenants in contracts of employment can prevent your staff:
Information held in the cloud can be vulnerable. To protect it, consider putting in place effective online security – including robust passwords and regular backups. Restrict access of critical or sensitive business information to a few trusted staff members.
Your business's brand can become a valuable asset that potential buyers will see as a strength. A recognisable brand helps set you apart from your competition. By building a reputable and reliable brand that’s trusted by consumers, you’ll add value to your business.
Consider whether you need to reinvest some of your profits in research and development for new products or services. The business world is constantly changing so standing still generally isn’t the best option. Reinvestment is an opportunity to add value to your business.
It’s important to keep any technology your business depends on, and the facilities it uses, up-to-date. You’ll harm productivity and hence your competitiveness if you allow them to become out-dated.
As your business grows you can’t undertake every task yourself. By employing skilled and knowledgeable staff, you can build value into your business. When it comes time to sell, potential buyers will then be confident your employees are capable of successfully running the business without you.
Key employees are more likely to remain with your business if you offer:
Investing in the training and development of your staff will pay dividends because they’ll be able to take on more responsibility and add value to your business.
Recruit new staff members with care. By hiring the best employees, you can build an innovative and dynamic team who’ll be focused on delivering top products or services to your customers.
The needs and demands of your customers will change over time. Keep your products and services up-to-date, and move with the changing requirements of your customers, by conducting regular market research.
By responding to the results of your research, you’ll help your business to anticipate and plan for the future.
Establishing new distribution channels and breaking into new markets can take a large investment of time and money.
If you enter into strategic partnerships with successful distributors or complementary businesses, you may be able to expand your business's reach and win new customers in a more cost-effective manner.
Make sure your business has standard policies and procedures – simple, smooth-running processes are easier to use as it grows.
*No purchase necessary. The Contest commences at 12:01 a.m. (ET) October 23, 2016, and ends at 11:59 p.m. (ET) October 22, 2017. To be an entrant, you must be the named recipient of this notification, a legal resident of Canada and the age of majority, but not an employee, agent or representative of Scotiabank, its affiliates or subsidiaries, or a member of the household or immediate family of above parties. Selected entrant must answer time-limited mathematical skill-testing question. One (1) Grand Prize: $10,000. Five (5) Secondary Prizes: $1,000. Chances of winning depend on the total number of eligible entries received during the contest period. Click here for full contest details.