What makes a small business worthless or worth millions?
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What makes a business a salable business as opposed to a collection of people who work together and bring in some money but that is worthless when it comes to selling ?
Well for starters buyers will be looking for processes that reliably and predictably bring in new clients, convert them to customers (repeat clients) and keep them for as long as humanly possible.
Astute buyers will also be looking for evidence that the effective running of those processes is not significantly dependent on one person, be that the owner or another key player.
I think it was the great Peter Drucker who said that regardless of whether or not you want to sell your business you should aim to have it in such a condition that it is ready to sell at any time.
The key is to break both the marketing and product/service/value delivery down into a series of teachable steps. When you do that and prove that it works by bringing in significant amounts of cash then your business will be worth millions. Literally.
Worth thinking about?
Tags: business worth millions, marketing, teachable processes, value delivery