Do you know what you need to do to maximize your business value?Most owners don't but should.When you know how to maximize your business value you give your options. Lots of options.If opportunity unexpectedly knocks for you to sell your business, you know you can get top dollar.If you never sell your business, you're maxing out your profits and building your wealth.When I started my EdTech, Embanet, I had no idea of five specific levers that maximize your business value.Remember, I was the kid right out of school with no money, experience, or team.I was a cockroach startup that was surviving. Barely. I bootstrapped my company which was great, but this only took me so far.My cockroach startup days helped to ensure that I lived another day to fight the good fight. But it isn't enough.I was out to change the social fabric of society, and my blood, sweat, and tears only take me so far.Everything changed when I stumbled upon five levers that made the difference.It was these five levers that helped my company become an industry leader, and later, a 9-figure exit.What are these five levers that maximize your business value?There's only one way to find out.Keep reading.
Make a customer, not a sale – Katherine Barchetti
When you're looking to maximize your business value, let's start with your revenue.If you're like most businesses, your revenue is on a per transaction basis. A customer purchases your product or service, and you record the revenue.If you want to stay like most businesses, mediocre at best and a limited future at worst, keep doing this.[tweet_box design="default" url="http://jef.tips/j13mybv20" float="none"]When your business defies the trend you unlock your sweet success and wealth.[/tweet_box]What do you need to do to maximize your business value, you ask?Great question.The answer: Recurring RevenueRecurring revenue goes under many names. Subscriptions, SAAS, auto-renewal subscriptions, repeat customers, good until canceled, and contracts.Know this and know this well. Recurring revenue is your fast track to higher profits and a way to maximize your business value.Why is recurring revenue so important, you ask?Another great question.As the business owner, recurring revenue gives you a crystal ball into the future of your revenue.You know with a great degree of certainty how much money you'll have in the bank for the next billing period.Should you sell your company, know that buyers put a premium on recurring revenue.Why?Buyers protect their investment through minimizing risk. Recurring revenue is a fancy way of saying repeat business.And buyers know repeat business is good for business.Create a market disruption and prosper when you put in place recurring revenue.Whether you sell your business or not, know that recurring revenue is the gold standard. Do this now, and you'll thank me later.
You can't build a long term future on short term thinking - Billy Cox
Long-term contracts are your gateway to maximize your business value (and peace-of-mind).A long-term contract removes uncertainty and risk.The smart money is on a business that has figured out how to have a long-term contract with its customers.Easier said than done. The Internet has galvanized the freemium business model with no commitment or contracts.Most customers avoid long-term contracts like the plague.But if it were easy, everyone would do it.[tweet_box design="default" url="http://jef.tips/j13mybv20" float="none"]The path to success and wealth is a journey of conquering the hard things nobody else wants to do.[/tweet_box]How do you get your customers to agree to a long-term contract?Get creative.Hopefully, you've followed my advice on unlocking your sweet success, happiness, and wealth.You found a painful problem for many people that you're passionate to solve. You're so good at solving this problem that people will pay you to remove the pain.Bingo.Make your offering only available to customers who commit to a long-term contract.Buyers place a high value on companies that have long-term contracts with customers.Long-term contracts reduce risk and provide confidence for a bright future.Long-term contracts help you simplify for success so you can dominate and win.You can take that to the bank.Whatever you do, maximize your business value through long-term contracts.
There is no heavier burden than an unfulfilled potential - Charles Schulz
To maximize your business value is to have huge growth potential.My formula for business success:Find a painful problem affecting many people that you're passionate to solve. Be so good at solving the problem and removing the pain that people pay you for it.There you go, that's my secret to success and how I achieve my 9-figure exit.[tweet_box design="default" url="http://jef.tips/j13mybv20" float="none"]Never underestimate the power of mastering the details to unleash your sweet success.[/tweet_box]There's one word in my success formula that's easy to ignore or overlook. And it's this one word that's everything.What's the one word?The one word that makes all the difference is "many."You may have crafted the world's best solution to a painful problem. But if the worldwide audience is only 10 people you don't have a business.To maximize your business value ensure that you do two things:
The higher your growth potential the more likely your business survives and prospers.Buyers place a tremendous premium on a company with high growth potential.Most entrepreneurs lack the resources and experience to maximize growth potential.Buyers have both the resources and experience to realize the growth potential.Maximize your business value by ensuring you have high growth potential.
I never dreamed of success, I worked for it - Estee Lauder
Maximize your business value by having future markets to conquer.Businesses that rely on their glorious past dig their graves. Case in point is Blockbuster, Toys R Us, and Polaroid.Here's a loaded question for you:Would you rather put yourself out of business or someone else?There are two ways to put yourself out of business and win.Find new problems you're passionate to solve or new markets that you haven't entered.[tweet_box design="default" url="http://jef.tips/j13mybv20" float="none"]Whether you sell your business, or not, the future belongs to those who have future markets to conquer.[/tweet_box]Expansion to new countries is difficult at best and disastrous at worst.Nobody said success is easy. It isn't. And this is why most businesses fail, sooner-or-later.Finding future markets that you can expand into is one way to guarantee your survival.It's likely that you lack the experience, money, and resources to conquer new countries.Great news!Great news, you ask, why?Your potential downfall is your future buyer's upside.Buyers have the cash, experience, and expertise to unlock an opportunity you can't.There's one catch. Future buyers need to see the plan on how and why your company is the company to conquer future markets.Even if you don't plan to sell your company, having a plan gives options. And options are powerful.Maximize your business value through the opportunity of conquering future markets.
If you mean to profit, learn to please - Winston Churchill
To maximize your business value, I've saved the best for last: Revenue Sharing.When I started my EdTech, Embanet, I was that kid right out of school with no money, experience, or team.I didn't know what I didn't know, and my business model was like everyone else.No surprise that my long-term future was like everyone else.Not a good thing.Revenue sharing changed everything and made Embanet the rock star of the industry.A 9-figure exit followed.Why did Embanet's customers agree to revenue sharing?Embanet solved a painful problem that customers couldn't solve on their own.For Embanet's customers, a smaller piece of a larger pie was the only way to go.How do you morph your fee-for-service business model into a revenue sharing?Easier said than done.But once again, if it were easy, everyone would do it.Crack the code on how to make your customers want to revenue share with you and you can and will write your own ticket.Revenue sharing becomes your rocket fuel to larger profits and success.Should you sell your business, buyers will place a premium on your business.Why?Revenue sharing allows buyers to unlock higher profits.The smart money is on businesses with revenue sharing models.Find a way to have a revenue-sharing business model to maximize your business value.
In this article, I've shared five levers that can maximize your business value.I've left the theory for the classroom and revealed the exact strategies I used to create my 9-figure exit.Each lever on its own produces results.Your X-Factor is when you combine all five levers. The levers thrive off one another to create an unbeatable business model.Keep your business forever or sell it tomorrow. Either way, you must know how to maximize your business value.If you're after a strong, resilient, and profitable business than look no further.Master and put in place each of the five levers to unlock your sweet success.And the great news is that everything you need you already have within you, right now.So what are you waiting for?You can do it, I know you can.Here's to you and your success!Your Biggest Raving Fan,Jeffrey Feldberg