How to Increase the Value of Your Business
- Create a business model that brings you recurring revenue
- Service that cash flow with automation
I am a valuation geek. I tell owners, investors and founders what their companies are worth. If somebody is looking to invest in a startup, or looking to raise capital, or looking to sell their business, or buy a business, I am a good place to start, because first thing you need to know what the price tag is.
If you want to double the value of your business, you have to do two things and only two things. Other people will say you have to do four, you have to five, you have to do twelve. Two things and focus on the fundamentals.
First create a business model that brings you recurring revenue. Somehow you need to find customers that are willing to pay you on a monthly or weekly or a daily or a quarterly basis. If you are going to look for investors, if you’re looking for buyers of your business, they will be looking for business with consistent cash flow and recurring revenue. Gives consistent cash flow to any business, that’s one.
Number two, you need to service that cash flow with automation, now not everything can be automated. But when people hear the word automation, they’re like, “no my business can’t be automated.” Yes it can. Not everything about it can be automated. But what can? How about your account receivables? How about your marketing? How about your email outreach? How about your feedback? How about your internal improvement process? Anything that can be automated or used via software or a system do that, because that’s what increases value. When you sell your business to a new buyer or when you bring in a new investor, they will be asking you, “Hey what kind of policies and systems and processes you have,” and if you say, “No I am the system, I’m the process.” What happens if you run into a bus? What happens the business is gone. That’s a problem. Only two things.
Very good! Barack how do people find you online? I’ll be sure to share your links, but how do people find you?
Best way to find me is uh just google my name Bharat Kanodia. Or go to YouTTube and look for Barat Kanodia and my email will pop up as part of my channel. Feel free to reach out, I’m always happy to help first time founders. Thank you so much! I appreciate you having me. This has been great!