Putting a value on your business can be a tricky enterprise, but it’s not as puzzling as some would have you believe.
The real hurdles come as you attempt to increase that value. What improvements should you make? Where should your priorities lie?
Steady, dependable growth relies on four interrelated factors: earnings, risk, growth prospects, and transferability.
Earnings
Buyers make purchases to see returns on their investments; existing earnings are the most concrete predictors of potential ROI.
If you’re not making money, your value will generally be lower. Potential money is good, but money in hand goes a long way in proving the viability of your business model.
Risk
The less risk in your business’s future, the higher its value.
A few y...