Most businesses with under $1 million in revenue (which is most businesses) sell at a pitiful multiple of earnings when their owners decide it’s time. Typically they get two or three times their pre-tax profit, if they’re lucky. How can you get more juice out the company you’ve slaved over? John Warrillow, author of Built To Sell: How to Turn Your Business Into One You Can Sell, has five suggestions.
Recurring revenue: demonstrate that your customers come back to purchase regularly and you’ll drive up the value of your business because buyers will have confidence your sales will continue long into the future. Try to find an element of your business that has a consumable component e.g. toner cartridges not printers. Read more…
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