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The best return on investment is as plain as the nose on your face

Grow Your Revenues

Posted by David Humphrey on 7 September 2017 | Comments

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: 

  • Customers’ continued demand for the product.
  • Customers’ belief they are getting value.
  • The suggested opportunity for future growth.
  • The opportunity for increase profits.
  • The quality of the staff in place.
  • The opportunity to recruit higher caliber staff as needed for growth.
  • The possibility the company is taking market share from others.

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.

If you are interested in learning other ways to increase the value of your business, The Art Of Business Value Enhancement is a Must-Read!  

Click here for more information.