All profit starts as revenue. In real estate the key to value is Location, Location, Location. In business, the chant is Sales, Sales, Sales. Increasing revenues in the years leading up to sale is probably the greatest value enhancement technique. A business with growing revenues conveys so many positive aspects, including:
There is little negative associated with increasing revenues (unless you are accepting unusually low margins to win clients, and even then there may be several positives), and increased revenues alleviate a number of the buyer’s risk fears. Further, the one-time client acquisition costs can usually be adjusted to compute the normalized earnings of the business.
Probably the best return on investment (ROI) a seller can achieve in the years leading up to a transaction is to either start making sales calls or hire a talented, hungry salesperson to generate leads and increase revenues.