Why You Need To Focus On Future Business Value

Imagine this, you’ve got a business that’s ticking along nicely, profitable, stable, paying you a market salary and giving you a return as well. But here’s the question, is it an asset someone would want to buy and would they pay you what you wanted?

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Does This Sound Like You?

I recently chatted with a husband and wife team running a niche business under a million in turnover. I've worked with them off and on for a number of years. They are well run, profitable, drawing a PAYE salary, and still leaving profit at year-end.

But I reckon they were only skimming the surface. They had pinpointed growth opportunities, new markets, improved sales, better product offerings, smarter pricing. All things that would increase business value if they ever came to sell.

Yet they hadn’t acted, not because they didn’t want to, but because they hadn’t made that leap yet.

I had given them a call because I've been thinking about them over the last wee while and didnt want them to miss out on maximising a sale price at a future date.

We spoke about selling even though that's not on their agenda. Yes, today they’re in a good spot, a profitable niche, low competition business. But if they tried to sell now, it wouldn’t attract buyers that would maximise the sale value.

Why? Because a truly valuable business is one that’s not just profitable today, but primed for tomorrow.

How To Increase Business Value When You Sell.

In their case I said I believed they needed to focus on scaling the business (numbers are very solid, consistant t/over and margin) and doing that would increase any future maintainable earnings.

This is where scaling comes in. If you’re building profitability and recurring revenue today, you’re building long-term value when it comes time to sell. Buyers look for future earning potential, scalability, and ease of transition. A business that can double turnover or expand nationally (there's is all of that) isn’t just a business it’s an asset.

Now, let’s be clear, it’s not about sacrificing today’s profit for an imaginary future. It’s about leveraging today’s profitability to create future options. Imagine double the turnover, multiple locations, a recognisable brand. That’s a business someone wants to buy.

Think about these points:

• If you sell today, is your business attractive, or does it rely on your day-to-day?
• Are you building recurring revenue, so the next owner sees predictable returns?
• Have you thought beyond today’s profit into tomorrow’s value?
• Are you leaving money on the table which means you'll miss out at a later sale.

Don't Limit The $$$ You Can Make At Sale.

When we ask, "How do I grow this?’"we should also ask, "What could stop this?" Because the one thing you don’t scale might be the thing that limits your future. Limits the business sale value and you miss out on $$$.

After all, the goal isn’t just growth and profitability today, it's longevity and future value.

Thinking of scaling your business or selling? Then give me a call to see if I can help. It's what I've been helping folk do for 15+ years.