Important Attributes of Value in a Business
ENHANCED CUSTOMER LISTS
The customer list or database of a business is its lifeblood. So, of course, this is an area of great value. But it is the QUALITY of a list that increases the monetary worth more than the size.
Many businesses have no list recorded, at all – or the database exists but email addresses have not been kept up-to-date. There is enormous potential to quickly multiply sales and merit in any of these businesses.
Buyers and Investors will pay more for a high performing system, especially those with a supercharged customer database. That's golden. Franchises are a great example – they are sold for 3 to 5 times multiples of profit and even fetch hundreds of thousands of dollars when they are brand new and showing no profit. This is mostly because of their strong systems.
Land and property - or the bricks and mortar part of your business - are conventional ways for a business to be assigned worth. Today, there exists a new class of ownership having exchange value: intangible assets. These include patents, copyrights, franchises, innovative software solutions to run a business, computer-based systems - and social equity.
LEVERAGED BRAND REPUTATION
Today we live in the "Reputation Economy". Your business brand refers to practices that translate into positive impact: social equity and financial stability that reflects well on your company, stakeholdres, and customers. There is value in a brand because it reduces the risk of the business, and it can increase the profit multiplier significantly.
Again, take franchises for an example. This business model reflects the value of the brand and strong systems means that a well-known retail franchise can sell for up to 6x net profit. It also means that a store can bring a healthy buyout, even with zero profit.
But you don't need a franchise model to enjoy increased net profit. Our 7-Step Staging System gives you the Selling Advantage to achieve Peak Value.
The intellectual property of a business relates to the unique aspects of the business. This may be specialized products or services, an innovative design, or distinctive system. These things may be protected with patents or trademarks, or they may be hard to replicate because of the time, research and money required to develop them.
These qualities increase value by making a business more competition proof. The more differentiated and protected the intellectual property, the lower the competition, so the more valuable the business is.