SPECTRACOM HOLDINGS BUSINESS VALUATION SERVICES HOW TO INCREASE THE VALUE OF YOUR COMPANY "HELPING BUSINESS OWNERS AND THEIR ADVISORS DETERMINE BUSINESS VALUE“Since 1983

HOW TO INCREASE THE VALUE OF YOUR COMPANY

ACTION 1 Report All Your Company’s Income

Some of you may be thinking, “Of course I would report all of my income. “ However, there are a lot of businesses that generate most of their revenue in the form of cash and don't report all of their income. First, if you do this let me remind you it’s against the law. If you get audited and caught not reporting all of your income, sorry you are out of luck and could lose everything, including your freedom (jail time). Second, you cannot show a history of higher revenues when you go to sell your business, so you lose value at the time of the sale, since you cannot prove higher cash flow for the business. Third, you should reinvest at least part of the excess earnings back into the business to grow your customer base, thus increase your company’s value.

Action 2DIFFERENTIATE YOUR BUSINESS

Differentiate your business from your competitors. Don't be a follower, lead the pack. Discover or develop unique capabilities of your company and exploit those core compentences to add value to your business.

Action 3FIND A NICHE MARKET TO SERVE

Similar to Action 2, find niche market opportunities that you can profitably utilize to create primary or secondary streams of revenue.

Action 4JOINT VENTURE OR CO-MARKET YOUR BUSINESS

Find opportunities to joint venture or co-market with other companies that serve the same market your company serves, but who do not directly compete with you. Joint venturing will give your customer base the appearance that your company is larger than it is, that you have a broader spectrum of service/product offerings to help them solve multiple problems; and, finally you can leverage the relationships that your joint venture partners have with segments of your market you were previously unable to reach.

Action 5MANAGE COSTS

Manage the company’s costs of doing business, at all levels of the organization, to maximize the cash flow of the business. An increasing cash flow trend will substantially increase the value of your business. Many business owners think this is one of the hardest actions to take towards increasing business value. However, it will surprise you when doing a critical analysis of your operating costs that there are areas to decrease costs, even if you think there are no areas to decrease costs, and sometimes in the most unexpected areas.

ConclusionHopefully, these few suggestions have helped stimulate your thoughts on how you can increase the value of your business. There is no mystery in creating value, just smart management of your resources and exploiting opportunities to grow your business.

SPECTRACOM HOLDINGSSpectracom Holdings is a professional business valuation firm.Specialization: All business valuation issues, except ESOPsGeographic Area: United States, England, Australia, & AsiaClient Demographics: Small to medium sized businesses (Max. annual revenues of $50 million). Industries: All industries, except bars, liquor stores, adult entertainment, and churches

For More Information:Spectracom Holdings4120 Birch St., Suite 106Newport Beach, CA 92660Tel: 877-660-2895Email:info@SpectracomHoldings.comWebsite: www.TheValuationAdvisors.comBlog: http://businessvaluationservices.wordpress.com Professional Profile: www.LinkedIn.com, search Jim McCune, Owner, Spectracom Holdings