What exactly is value and how do you measure it in business? Value in business means 3 things: competitive pricing, exceptional service and reliability. Together these three components provide a unique experience and raise one business above their competition. Once the value is established, a client will gladly pay for a service or product that improves their life and/or adds to it.
To create value in your company, it is important to understand what it is the client needs. Once you understand the needs of your clients, fill that need. One way to do this is to service a niche market. When you service a small number of clients by offering everything they could possibly desire, you are creating value by offering an exclusive one-of-a-kind experience. Providing an experience that your competition is unable to match creates customer loyalty. Having a loyal and reliable base of customers is a reflection of the value they see in your service or product.
Know what your clients need in terms of technology, and update your technology to that level (or beyond). Not all types of businesses need the most up to date technology, but all businesses need to know what their clients expect. Creating value in your company means exceeding expectations. Once you understand what your client desires, go one step further to create the “wow” factor.
Positive Cash Flow
As a business owner, you must know the funds that are coming in and going out of your company. Knowing and understanding your business model will allow you to cut expenses, or increase profits, to establish a positive cash flow. Once you have positive cash flow, continue to perfect the input and output ratio to grow your profits. Seeing positive cash flow month over month is what every business owner strives to achieve.
Value is created by providing an exceptional experience. Hiring employees who are passionate about what they do translates into exceptional customer service. You cannot create value with disengaged employees. Clients want to do business with people they know and trust. Clients keep coming back for exceptional service by passionate employees.
No business operates solo. Business partners are imperative to the ease of operations within a business. Building long-lasting reliable relationships, that can withstand the ups and downs of business ownership, creates value. Knowing who you can trust and count on, will allow you to focus on other areas of your business.
Creating value encompasses more than just one aspect of your business. Creating value involves a well functioning business and happy clients. Internal and external relationships are important when buying or selling your business. Solid relationships and loyalty from both internal and external stakeholders contributes to the stability and sustainability of your business.
A R Business Brokers specializes in selling businesses and providing a no obligation evaluation. Our team of certified business experts offers a FREE price evaluation. We know what defines value in a business and how to evaluate your business to be market ready. Our greatest achievement is satisfied buyers and sellers – contact us today to find out how we can help you.