Building Business Value

Business owners focus on annual net income generation and revenue growth, but how often is the value of the business considered when making strategic business decisions?

 

For many business owners their business is their biggest asset, and when the time comes, they should be prepared to sell the business they have spent years building. An early focus on value drivers can increase annual cash flow and improve the long-term value of the business, so owners can potentially maximize the sale of their business.

 

What Are Value Drivers?

 

Value drivers are specific business characteristics that can reduce the risk of owning the business, and/or increase the likelihood of growth and return. While each business is unique, there are several areas that can greatly impact the value of a company.

 

  1. A strong, stable management team
  2. Documented business operating systems demonstrated to increase cash flow sustainability
  3. Demonstrated scalability
  4. Diversified customer base
  5. Proven growth strategy
  6. Recurring revenue that is sustainable and resistant to commoditization
  7. Good and improving cash flow
  8. Competitive advantage
  9. Financial foresight and controls

 

Over next several weeks we will be focusing on each of these items individually in the ARGI Business Brief.  We will share stories and insights as to begin to make changes in business practices to increase business value.

 

January is goal setting time – this is a great opportunity for business owners to take an inventory of the value drives above and set goals for the upcoming year.

 

The ARGI team is equipped with a team of professionals seasoned in working with business owners to help them increase the value of their business. We would love the opportunity to help you reach your goals. Please contact our team with any business questions you may have.

 

Source: Brown, John. Exit Planning: The Definitive Guide. Business Enterprise Press, 2016.

Office Locations

Louisville

2201 High Wickham Place
Louisville, KY 40245
502.753.0609

Cincinnati

100 E-Business Way
Suite 110
Cincinnati, OH 45241
513.842.1700

Bowling Green

1048 Ashley Street
Suite 301
Bowling Green, KY 42103
270.843.4115

Indianapolis

5750 Castle Creek Parkway North Drive
Suite 170
Indianapolis, IN 46250
877.634.9757

Grand Rapids

607 Cascade West Parkway
Grand Rapids, MI 49546
844.476.2744

Elizabethtown

2901 Ring Rd

Elizabethtown, KY 42701
270.990.9000

Lexington

176 Pasadena Drive
Suite 3B
Lexington, KY 40503
859.286.5085

Paducah

4730 Village Square Drive
Suite 100
Paducah, KY 42001
270.443.8711

All information herein has been prepared solely for informational purposes, and it is not an offer to buy or sell, or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular trading strategy. Portions of the content on this website were prepared by Marketing Library Inc.

Please note: When you link to any of the websites provided herewith, you are leaving this site. We make no representations as to the completeness or accuracy of the information provided at these sites. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or use of third party technology, sites, information and programs made available through this site. By clicking on links above you will leave our website and assume total responsibility and risk for your use of the site you are linking to.

Respective services provided by ARGI Investment Services, LLC, a Registered Investment Adviser, ARGI CPAs and Advisors, PLLC, ARGI Business Services, LLC, and Advisor Insurance Solutions. All are affiliates of ARGI Financial Group. View our privacy policy here.

Argi Gateway Login

Forgot your password?

Call 866-568-9719