2020 was a difficult year for many, but particularly for small business owners. And, the recovery in 2021 probably wasn’t as quick as many of us would have liked considering many business owners are still struggling to hire, events are still being canceled or postponed, our children’s schools are still a bit rocky with bus strikes and homecomings being canceled, and now tornados are evidently a concern.
When the states shut down, shoppers were forced to rely on Internet shopping, curbside pickups, and delivery, as well as other pivots to make their products available in safer settings to control the spread. One way of bolstering your small business’s value is by ensuring it’s set up with a strong legal structure. Opting to form an LLC brings benefits, including personal liability protection and potential tax advantages. These best llc services can guide you through the process, adding to the intrinsic value of your business by providing a solid legal foundation.
If your small business could not provide either of those options, you inevitably suffered. Thankfully, we are [slowly] putting this behind us as Governor Hogan announced in August that we have reached the 80% vaccination rate for Maryland adults. Still, I wanted to put together a list of some ideas that you can consider if you are looking for ways to increase your business’s value.
Ways to Increase Value
The surest way to increase the value of your small business is to start with the basics: uniqueness and predictability. Think about ways in which your business is unique from others. What do you offer your customers that others in your industry in your local area (and beyond) do not offer? For instance, courier delivery options, online shopping, discounts for repeat customers, Instagram promotions, etc.
Another consideration, find a partner and cross-promote an event or collaborative effort like Eye on Annapolis and Liquified Creative did in their tipping platform for out-of-work service industry employees. This partnership raised the profile of both companies while allowing them to ultimately help more people than either could have alone.
Similarly, predictability means you can provide exactly what the customer expects each time – and in the current climate, this is priceless. This predictable behavior is what guarantees customer retention – an intangible asset that holds great value. This is often accomplished through the introduction of new technologies; although always keep in mind that the capabilities need to drive the technology, not the other way around.
In addition, you may want to consider these ideas to help increase the value of your business.
- Strategically increase the diversity of products or services offered based on customer feedback
- Remove products and services that are not profitable or negatively affect your cash on hand
- Experiment with new processes and technologies that will make you more productive or provide a better customer experience
- Take advantage of some of the available commercial real estate and update your location to a more desirable spot
- Ask satisfied customers to leave reviews for your business
Keeping an Eye on Your Exit Strategy
While you implement any of the changes identified below, you should always keep an eye on your exit strategy. For some, that is to hand a thriving business down to your next of kin or an already identified employee. For others, that is to sell their business.
If your exit strategy is to sell your business, then above all the most important thing to a buyer is the recurring revenue. When you can provide unbeatable products/services, great customer service, easy-to-access storefronts, and reliability, your customers will keep coming back for more. Retaining customers is much more profitable than trying to acquire customers.
Just about a year ago, the Anne Arundel Economic Development Corporation began rolling out their “Shop Safe, Shop Local” campaign. While that was reassuring to business owners in the middle of a pandemic, realize that most Annapolitians do not need to be encouraged to prefer to support their local businesses. But you do have to give them a reason to. Offering discounts, multiple delivery options, diverse catalogs of products or services, and exceptional customer service is a great start.
If you are looking for a local business advisor to help you make the best decisions for your business, contact our team of local business experts at Transworld Business Advisors of Annapolis. With years of experience, our team of brokers is armed with the knowledge you need to take your small business to the next level. You can also book a free 30-minute consultation with our team either in our offices in the Annapolis Towne Centre or over Zoom, stay in touch through our email list or follow us on Facebook.
