When you first started your business, you might have not thought about building a sellable business. Most entrepreneurs are driven by the “freedom” associated with self-employment, and it takes an enormous commitment to build something that is sustainable and sellable.

But, whether you’re starting a new business today or have an existing one, realize that your most lucrative product should actually be your business… if you choose to sell it one day.

This makes sense if you take emotion out of the equation, but we’re human beings.

Selling something you’ve become attached to can be challenging and looking at it objectively might be difficult.

But if you want to be able to sell your business one day… This rarely happens by chance.

Entrepreneurs that plan ahead will always have a better sales experience and get a better price. Even when you’re actively running your business today, going through these steps to increase its value will put more money in your pocket when it’s time to retire or move on to the next opportunity.

Here are 10 ideas how to make your business more valuable:

1. Improve Your Cash Flow

Improving your cash flow will benefit you both in the short and the long term. It will also help strengthen the health of your business for future investors or buyers. If you are experiencing a steady improvement and increase in cash flow – well done. However, if you’re struggling with cash flow, start looking for areas to improve.

2. Reduce Your Expenses

Tidy up shop by reducing your expenses where you can. By reducing costs, you increase profit, which has a huge impact on the value of your business. 

3. Become a Leader in Your Niche

Trying to serve multiple different target audiences will lead to less security in your industry. Always find your unique offering to your specific target audience and focus on where your business’ strengths are. Take the time and effort to build a leadership position in your niche.

4. Create a Brand

If you’re a small ‘me-too’ business, it will be impossible to become a leader in your niche. Get creative! What can you become famous for? When you build a brand – you own the niche. Clients are happy to pay for a strong brand that is positioned well in the marketplace.

5. Develop a Recurring Revenue Stream

The more revenue you have from automatic recurring contracts or subscriptions, the more valuable your business is to a buyer. Even if subscriptions are not the norm in your industry, if you can find some form of recurring revenue it will make your company much more valuable than those of your competitors.

6. Offer Something Unique
The average customer looks to the market for a solution to a problem he or she cannot solve on their own. Present something highly unique that solves problems or improves customer quality of life and you will always have a strong customer base. Continue to innovate and offer something different from your competitors and your company’s value will steadily climb.

7. Protect Your Intellectual Property
Often your Intellectual Property (IP) is much more valuable than physical assets. If your company has a revolutionary idea, a unique process, or a brand name – when you protect those – you increase the value of your business.

8. Make Your Staff Replaceable
If your business depends on key members of your team, start building systems. If a new owner can’t continue to operate when certain team members leave, you’ll find it hard to sell. Start documenting processes and procedures so if a team member left the business, the business will continue to be successful.

9. Make Yourself Replaceable

Eliminate yourself from the picture to gauge how well your business will function if you take a vacation, require medical attention or decide to sell. If your business cannot function without you, it does not have as much value to a potential buyer.

10. Clean Up the Books

If your aim is to sell the business in the near future, invest in a professional audit of the company’s financials. This independent review of the books will provide an honest look at the company’s financial health, making it much more transparent and attractive to buyers.

Now It’s YOUR Turn

For five minutes… come up with as many ideas as you can… what could YOU do to increase the value of your business?