Adam J Clarke, Macropay Founder, and CEO, claims that what your business is worth is less about what you do and more about how you do it. The CEO shares his strategies to grow Macropay into a multi-million-euro business in less than 10 years.
Adam Clarke argues that specific industries tend to have higher valuations than others. Studies reveal that even in trending industries, some businesses outperform their peers. The factors that lead to higher business valuation vary. However, specific attributes could help increase your business value.
Recurring predictable income
Predictable and recurring income from repeat purchases or services makes businesses valuable. For instance, streaming services that charge a monthly subscription have a predictable income stream. While subscriptions are impossible for all businesses, alternatives like loyalty programs could make your business income more predictable and valuable. In addition, consumer products that require recurring product purchases also fall under this category.
Unique value proposition
Adam Clarke encourages businesses to discover what makes them unique. For example, your business’s intellectual property results from research and development. Alternatively, a product or service that is not easily replicated can make your business valuable. In addition, innovative businesses are more likely to be acquired by bigger and more established companies.
Another unique aspect that adds to the value of a business is its location. As Lord Harold Samuel is famous for saying, “There are three things that matter in property: location, location, location.” If your business has a great location, either for logistical reasons or for real estate value, the location can give your business great value.
Sustainable growth
Business growth and development are critical for increasing business value. Adam J Clarke believes mastering basic business development strategies can help enhance your organization’s value. For instance, comparing your business data with current market standards is essential in determining your market position. If the industry is growing by 15% per annum, your business should be growing by at least 15%.
Your client profile also represents growth. If the business earns most of its revenue from a single or just a few clients, this can be perceived as a weakness. It is more valuable for your business to have clients from diverse industries to reduce the risks.
Strong corporate fundamentals
Human resource, for example, is one of the most valuable assets of any business. If a precious employee leaves and joins the competition, that could either make or break a business.
Enterprises that rely on more than one expert or leader have a balanced division of authority and, therefore, have a better distribution of value. Further, if the owner holds all the power and company knowledge, the company is less valuable because all the expertise lies with only the owner.
Finally, Adam Clarke says that the mark of strong management within the organization is not just about making a profit. Maintaining proper procedures, records, and databases and retaining talent all indicate solid organizational management.
To learn more about Adam J Clarke or how Macropay can help your business grow, visit www.macropay.net
