CGK Business Sales

Austin Business Brokers | Texas Mergers and Acquisition Experts

  • Austin Business Brokers
  • Business Valuation
  • Buy A Business
  • Selling A Business
  • Blog
    • Business Valuations
      • Sell A Business
      • Business Brokers
      • Mergers and Acquisitions
      • Selling My Business
        • Sell My Business – Austin
        • Business For Sale
        • Small Business Sales
        • How To Sell A Business Austin TX
        • How To Sell A Business
        • How To Sell A Company
        • Brokers And Sellers
        • Business Acquisitions
        • Austin Texas Business Opportunities Travis County
        • Hays County
        • Williamson County
        • Business Brokers Austin TX
        • Business Consulting Austin
        • Business Sales
        • Businesses For Sale By Owner
        • Creating Value
        • How To Sell A Company
        • How To Sell Your Company
        • Sell Businesses
        • Sell Your Business
        • Selling A Company
        • Selling A Small Business
        • Selling Business
        • Selling My Business
        • Selling Your Business
      • If You Use Any Of The Other Austin Business Brokers…
      • Business Broker
        • Find A Business Broker
        • What Is My Business Worth
          • Business Brokers San Antonio
          • Small Business Brokers
          • Austin Business Broker
          • Austin Brokers
          • Business Broker Austin
            • Business Realtor
            • Business Agent
    • Mergers & Acquisitions
      • M&A
        • Business Acquisition
        • M & A
        • Merger And Acquisition
        • Company Acquisition
        • Austin Mergers And Acquisitions
          • Small Business For Sale
          • Small Business Opportunities
          • Small Business Opportunity
            • Due Diligence Checklist
          • Businesses For Sale
            • Texas Business For Sale
            • Buying An Austin Business
            • Austin Business For Sale
            • Businesses For Sale in Austin
            • Local Businesses For Sale
            • Franchises For Sale
            • Franchise For Sale
            • Franchises
            • Companies For Sale
            • Businesses Austin
            • Businesses For Sale in Austin TX
            • Business For Sale Austin TX
            • Business For Sale San Antonio
            • Business Opportunity
            • Business Opportunity
            • Business Opportunities
            • Franchise Opportunities
            • Business For Sale in TX
            • Buying An Austin Business
            • Businesses For Sale in Austin TX
            • Constant Contact Archive
            • Axial Markets
            • Seeking Alpha
            • Austin Chamber of Commerce
            • businessbroker.net
            • Better Business Bureau
  • Team
  • Contact Us
Home » Top 3 Ways To Add Value To Your Business Without Adding Sales

Top 3 Ways To Add Value To Your Business Without Adding Sales

June 10, 2015 by bba12

The easy way to add value to any business is to add sales, which, if your margins stay consistent, should add to your bottom line.  Adding sales is intuitive.  But what if it is not easy to add sales?  What else can a potential business seller do to increase the value of their business?

1) Add Infrastructure– What do we mean by this?  Promote from within and add a layer of management.  Add a head of sales, head of operations, etc.  Even if this title does not add anything to the employee in the way of monetary value, having a team around the owner makes the transition to a new owner seem a little less scary for a potential buyer.  Ideally, a new owner can step right in and the transition will be seamless for that new owner.  Having a management staff around that new owner will give the buyer confidence that they don’t need to know every aspect of the business to be successful.  Remember, as a business seller, you have perfect information about the business.  The buyer does not, even if they have direct experience with that same type of business.  Every business is different.  Adding a layer of management makes the transition less scary for a buyer.

2) Subtract Responsibilities– This is along the same lines as #1, except different.  No buyer wants to work 100 hours/week.  In the same vein, no buyer wants too much responsibility when they take over a business.  Many business owners are the bookkeeper, HR department, marketing department, strategist, etc.  The less a new owner has to do, the more attractive a business can be.  Although every dollar is precious, some of these functions can be outsourced for far less than it would take to hire someone internally.  For instance, ADP, the payroll company, has many of these functions.  You can outsource these functions to them for a low cost.  While this may not seem attractive, as money is flowing out the door, this frees up time for the business seller.  The seller can then focus on what they do best; growing the business or simply adding better clients and subtracting those that eat up 80% of your time.

3) Add Margin- Every buyer wants a special business.  As Warren Buffet would say, buy a business with a moat around it.  This moat keeps the business safe from attack from competitors.  How can you as a seller add margin?  In every industry, there are products or services that have extra margin to them.  They might be hard to get or take a special technology, but there is a reason why you, as a seller, can charge more for that product or service.  Maybe you have an exclusive contract, rights, or a protected territory?  Margin is proof that there is something special about your business.  With margin, you can show a buyer empirical evidence, rather than simply telling the buyer that your business is special. Adding margin, in the form of special products or exclusive contracts, can make a buyer feel better about expansion opportunities or simply make them choose your business over the other hundreds of opportunities that are out there in the marketplace.

Many business sellers, right after they ask, “What is my business worth?”, ask, “How can you add value to your business?”  Following these three guidelines will help.

Share this:

  • Email
  • Print
  • Twitter
  • Pinterest
  • Facebook

Filed Under: Uncategorized

  • Facebook
  • Google+
  • Twitter

RSS Business News from Entrepreneur

  • Why we should bet on technology on Earth Day
    The pandemic has not only inherited changes to our lifestyle, but it has also provided a respite for the planet.
  • What are the main mistakes when recruiting new collaborators? Here we tell you
    Take note and make no mistake when hiring the new member of your team.
  • People Complain 15-20 Times A Day: 5 Ideas To Quit
    If you live permanently in this state, you are going to suffer it, because not only do you not advance or solve problems, but it is a boomerang that turns against you.
  • Challenges and opportunities for entrepreneurs during the pandemic
    In the first five weeks of confinement, society and economies were digitized more than in the previous five years
  • Top Fintech Stocks To Buy Right Now? 4 To Watch During The Crypto Boom
    Here are four trending fintech stocks to watch right now.
  • 7 Ways to Make an Unforgettable Business Name
    Want people to remember your business's name? These seven strategies can help.
  • 10 Steps for Creating an Effective Content Marketing Campaign
    Content marketing isn't hard. Follow these 10 steps to do it right.
  • If You Want to Improve Employee Satisfaction, Try This Controversial Practice
    Sometimes employees need to find other opportunities to reach contentment.
  • Leadership Lessons From a Retired Indian Army Brigadier
    How to lead from the front without turning into a demanding drill sergeant.
  • Top Stocks To Buy Now? 4 Consumer Stocks To Consider
    As consumer spending continues to rise, these consumer stocks could be worth watching.

Contact Us

CGK Business Sales

401 Congress Ave

Austin, TX 78701

phone: (512) 900-3770

website: https://businessbrokersaustin.com

Copyright © 2021 · Enterprise Pro Theme on Genesis Framework · WordPress · Log in

loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.