What classifies a business as valuable? The response varies depending on the size of the business and the industry. Certainly, most buyers want specific attributes like positive cash flow, efficient operations, a healthy market share and a strong management team.
8 elements that make a business more valuable:
High percentage of repeat sales
No legal issues
Potential for growth
Margins and cash flow
Consistent revenue growth
Customer outreach and quality control
Developing your succession plan
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Why A Business Should Be Valuated?
When it comes to having their businesses valued, most business owners are impulsive. However, there are situations when being active pays off. Some valuations such as determining the worth of an estate’s business interest are inevitable. There are some arbitrary reasons for other valuations, yet they all assist business owners in strategizing tactics.