How can small operational changes increase your company's valuation?

Many business owners assume their company’s value is set in stone, based on revenue and profit. But the reality is, small operational changes can dramatically increase valuation—even without increasing revenue.

Some Factors That Influence Business Value

✅ Recurring Revenue Streams – Subscription models or long-term contracts are more valuable than one-time sales.

✅ Documented Systems & Processes – Businesses with well-defined SOPs (Standard Operating Procedures) are easier to transition, making them more attractive to buyers.

✅ Strong Customer Retention – A loyal customer base reduces acquisition costs and increases long-term stability.

Case Study: How One Business Boosted Its Sale Price by 40%

A business I advised had strong financials but lacked structured operations and documented processes. Buyers were hesitant because the owners were still heavily involved in day-to-day activities.

My recommended approach with them was to:

• Document all of their daily systems and processes

• Train their management team to assume their responsibilities.

• Discard low margin offerings and focus on higher margin products

• Develop a clear transition plan.

Implementing these simple but effective changes had an impact of a 40% higher valuation.

Only you can make the changes to improve your business. Don't wait and just expect a great offer!

Key Takeaway:

Your business’s value isn’t just about today’s numbers. Buyers pay more for future security, strong processes, and a scalable model. Make small improvements now, and you’ll maximise your exit later.