10 Things That Make Your Business More Valuable – Often 70% Higher Than That of Your Industry Peers!

The value of your company is partly determined by your industry. For example, cloud-based software companies are generally worth a lot more than printing companies these days. However, when businesses in the same industry are analyzed, major variations exist with respect to valuation. Because of the large number of Baby Boomer owners within the small business community, it is crucial for these business owners to consider building value now so they can obtain higher competitive offers when they transition out of the business. Here are ten things that will make your business more valuable than its industry peer group:

1. Recurring Revenue

The more revenue you have from automatically recurring contracts or subscriptions, the more valuable your business will be to a future buyer. Even if subscriptions are not the norm in your industry, you should be able to find some form of recurring revenue that will make your company much more valuable than those of your competitors.

2. Something Different

Buyers buy what they cannot easily replicate on their own, which means companies with a unique product or service that is difficult for a competitor to knock off are more valuable than a company that sells the same commodity as everyone else in their industry.

3. Growth

Acquirers looking to fuel their top line revenue growth through acquisition will pay a premium for your business if it is growing much faster than your industry overall.

4.Cache

Tired old companies often try to buy sex appeal through the acquisition of a trendy young company in their industry. If you are the “darling” of your industry trade media, expect to get a premium offer.

5. Location

If you have a great location with natural physical characteristics that are difficult to replicate (imagine an oceanfront restaurant on a strip of beach where the city has stopped granting new licenses to operate), you’ll have buyers who understand your industry interested in your location as well as your business.

6. Diversity

Buyers will pay a premium for companies that naturally hedge the loss of a single customer. Ensure that no customer amounts to more than 10 percent of your revenue and your company will be more valuable than an industry peer with just a few big customers.

7. Predictability

If you’ve mastered a way to win customers and documented your sales funnel with a predictable set of conversion rates, your secret customer-acquiring formula will make your business more valuable to a buyer than an industry peer who does not have a clue where their next customer will come from.

8. Clean Books

Companies that invest in audited statements have financials that are generally viewed by buyers as more trustworthy and therefore worth more. You may want to get your books reviewed professionally each year even if audited statements are not the norm in your industry.

9. A “2iC”

Companies with a second-in-command who has agreed to stay on post-sale are more valuable than businesses where all the power and knowledge are in the hands of the owner.

10. Happy Customers

Being able to objectively demonstrate that your customers are happy and intend to re-purchase in the future and consistently make referrals will make your business more valuable than an industry peer that does not have a means of tracking customer satisfaction.

Like a rising tide that lifts all boats, your industry typically defines a range of multiples within which your business is likely to sell for; but whether you fall at the bottom or top of the range comes down to factors that have nothing to do with What You Do, but instead, How You Do It. Consider the following eight value drivers:

(a) Financial Performance: Your history of producing revenue and profit combined with the professionalism of your record keeping;

(b) Growth Potential: Your likelihood to grow your business in the future and at what rate;

(c) The Switzerland Structure: How dependent your business is on any one employee, customer, or supplier;

(d) The Valuation Teeter-Totter: Whether your business is a cash suck or a cash spigot;

(e) The Hierarchy of Recurring Revenue: The proportion and quality of automatic, annuity-based revenue you collect each month;

(f) The Monopoly Control: How well differentiated your business is from competitors in your industry;

(g) Customer Satisfaction: The likelihood that your customers will re-purchase and also refer you; and

(h) Hub & Spoke: How your business would perform if you were unexpectedly unable to work for a period of three months.

By working on these value drivers, your business can build significant value over time and, with the right tools and resources, you may be in the position to get offers of over 70% more than your industry peers. And, the sooner you start, you can not only expect a more valuable business, but a much more profitable one in the short term.

Secret Of Using Blogs To Drive Traffic To Your Home Business Site

One of the main benefits of creating a blog is that you can use it to drive traffic to your home business web site or your offline home business. And the key to doing this is to make sure that your target audience can find your blog as easily as possible.

This means you need to do whatever you can to get your blog ranked as high in the search engines as possible, and make sure that the major search engines like Google, Yahoo and MSN know when you have updated your blog so they can visit it and “index” your latest blog post–ensuring it appears in their search results.

Since Google is the largest and most powerful search engine for generating traffic to your home business blog, you will probably want to focus a great deal of your attention here.

Fortunately, there is one particular strategy you can use to make sure Google knows exactly when you have added new content, so that it can visit your home business blog and index your latest post… which enables people searching the internet to find your blog.

Only when Google has visited and indexed your new blog content will that content show up in Google’s search engine. Any by telling Google to come and visit your blog, you will get your latest content into the search engine much faster– potentially by weeks or even months–than if you wait for them to find it.

We’ll use our home business site ([http://homebusinessnow.blogspot.com]) to illustrate the step-by-step process you need to follow to use this strategy effectively.

Your first step is to submit your blog to Google. Your home business blot must be submitted to a search engine to speed up the process of getting listed in Google’s search results. To do this, go to Goolge and when the URL shows up, add the following without the quotes to Google’s address “addurl”. Hit “enter” and on the next page enter the URL of your blog and a brief description and submit and you are done!

Now wait a few days (you can add more than one URL if you have several blogs running) to check if your blog has been visited by Google. To verify if your home business blog has been added go to Google’s search engine just type Google (dot) com into your browser window. When that page opens enter “cache: followed by the URL of your blog site. If your blog has been visited by Google, you will see the date of the visit at the top of your blog page plus a “cached” (saved) version of the page on that particular date.

You can double-check your listing status in Google by searching for a unique string of words in one your blog posts as if you were an internet surfer looking for information. As an example, enter the following words with the quotes, “make money with a home business” and you’ll see our main site come up. At the time of this writing, our site was ranked #2.

Your blog will appear in the search results if Google has visited and indexed it.

Business Opportunity Leads – Do You Know About Google Toolbar For Monitoring SEO?

If you search the internet, you will find various tools and ways to monitor your SEO (search engine optimization) for driving those business opportunity leads. Here is something that you might not be aware of but it can be used to monitor not only your own stats but those of your competitors for certain things!

Google Toolbar does many things but I do not really want to get into them. I have to say though there are a few that come in really handy! I want to let you know about the one item that is helpful for monitoring SEO.

You will have to search the internet for “Google Toolbar” and then download the version that you will need whether it is for Firefox, Windows, etc. It is a short bit of code and the install goes quick. Once you have this loaded, on your browser bar, go to about the middle. There you will see an icon that says “Page Rank”. This is what you are looking for!

If you move your mouse and let it hover over that icon, it will show you the page rank for whatever web site you have pulled up. By clicking on the down arrow to the side of the “Page Rank” icon, you have other options which include Cache, Similar Pages, and Backlinks.

Clicking on “Cache” will show you the last time Google has last crawled that web site. This comes in handy if monitoring your web site or competition to see how often Google goes there. It also can give you an idea of keyword term positioning if you follow things closely. The option for “similar pages” does not really help you that much.

Clicking the “Back Links” option will tell you obviously how many back links that web site has. Good to know for what you and others are doing.

As I said earlier, there are other things this toolbar can do that definitely makes life easier on the internet but if you are using SEO for acquiring business opportunity leads, this toolbar is worth the download!

So there you go! A tool for monitoring Page Rank, site last crawled, and Back Links through the use of your browser!