When it comes to evaluating a company, you know that revenue and profitability are among the main factors considered.
You also know that to understand the value of your company, the type of income is also taken into account. Recurring income will generate a greater overall value for your company. In other words, your company will score higher in a business evaluation if the majority of your income comes from long-term contracts…
Obviously, money is important, but it is not everything! Even in business (yes, really).
Here are 5 ways to increase your company’s value without having to increase your revenues.
- Brand image Although it may sometimes seem incalculable (hello PR agencies), brand image is relevant, and you need to work on it.
What perception does a visitor have of your website when they land on your homepage? Does the design and text correspond to what your company really has to offer? When was the last time you updated your portfolio or shared a case study? We all know that refreshing logos and creating a new brand image influence our audience’s perception (automobile brands love it—from Renault to Kia, it never stops—but not just them!).
A positive brand image can be measured to some extent, using key performance indicators of media coverage, social media metrics, marketplaces, or job offer sites. A good brand reputation helps attract and retain top talent. We talk about it in this article.
Top talent helps establish new relationships with clients. Healthy and prosperous client relationships lead to business growth, and all this leads to better company valuation. It’s that simple.
- Management and workflow management An extremely important thing for potential buyers of a company is the response to the following questions:
How will the company operate once sold? How solid and reliable is the management team? Is your organization well-structured? Is the workflow managed on a digital platform, and how is information managed?
The answers to these questions should:
Inspire leaders to reassess their operations and processes. Identify areas for improvement. The more your workflow is documented and your organization is well-organized, the better your company’s evaluation will be. A good business management software can also help you improve your business efficiency, and consequently the image you convey.
- Employer branding, employee happiness Here is another factor that can make or break your company: employee happiness. Your company’s employer brand can positively influence your evaluation.
Does your firm attract top talent? Can you boast a fantastic work-life balance within the agency, proven social benefits, and a low employee turnover rate? All these factors will amplify your brand image and the final price you can get for your company.
- Overhead cost reduction In a much more hybrid work setup since 2020, offices have become less popular, but sometimes still necessary to foster culture and meet the needs of some employees. But with so many employees coming to the office twice a week, companies are looking for optimal solutions.
Reevaluating overhead costs, such as office rentals, is a point to consider.
The higher your company’s overhead costs, the more you will need to be able to “sell” them to a potential buyer.
- Strong client relationships Last but not least: relationships. This factor is somewhat related to brand image and employer branding. In short, imagine you are selling your company. It is a living entity, a company that will continue to operate after you have sold it.
Now imagine you sell it to someone without explaining how difficult communication is with three of your five main clients, who bring in more than 25% of your annual revenue. If your client relationships are not built on solid foundations and risk deteriorating in the long term, this is a point you will need to be honest about during the evaluation of your company, as client relationships can impact future results.
Understanding your company’s situation Knowing how much your company is worth and being able to compare it to its peers is at the very least instructive. Contact us to find out what you can improve with Furious to increase your market value, grow, or shape the future of your company!
