3 Ways to Make Your Company More Valuable Than Your Industry Peers

Increase Company Value Beyond Industry Norms

Wondering how to increase your company’s value? Many business owners assume that their company’s value is tied directly to industry standards. However, eight factors influence business valuation, and some of them are far more impactful than the industry you’re in.

Jill Nelson, for example, sold Ruby Receptionists for $38.8 million, well above the industry standard. At Value Builder, we’ve worked with over 40,000 businesses. Companies with a Value Builder Score of 90+ receive offers that are twice the average multiple of pre-tax profit.

How to Increase Company Value: 3 Key Strategies

Cultivate Your Point of Differentiation
Acquirers seek businesses with unique strengths. If your competitive edge is simply price, they may choose to build a similar company and attract your customers with temporary discounts. For Ruby Receptionists, the competitive advantage was advanced technology for routing calls efficiently during surges, giving them an edge over low-tech competitors.
Establish Recurring Revenue Streams
Acquirers value businesses with predictable earnings. Ruby Receptionists achieved this with recurring service contracts, ensuring consistent income and making the company more attractive to potential buyers.
Diversify Your Customer Base
Companies with a broad customer base are less risky. Ruby Receptionists had 6,000 customers, which minimized the impact of losing any single one. Acquirers favor this type of diversification for stability.

By focusing on these strategies, you can increase your company’s value and differentiate it from industry peers, regardless of the sector you operate in.

Are you ready to learn more? Take the assessment or learn more here.
Whether you want to sell your business – or just know that you could – learn the eight things that drive the value of your company and suggestions on how to dramatically increase the value of your business.