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Enhancing the Value of Your Small Business With a Professional Marketing Strategy

The valuation of a small business is not an exact science - but there are some solid, commercial indicators which all small business owners should be aware of.
Before we embark on this short exploration of adding value to your small business with professional marketing, we'll actually begin this journey at our end-point to ensure a satisfactory outcome: Your profitable exit.
Have you ever thought of what you'd like to do when you are no longer running your business?
Your business is a 'means to an end'. It's simply a vehicle of choice to get you to where you want to be in the future. Notwithstanding, we strive for excellence in our endeavours from which others (particularly our customers) will derive benefits. The question remains though - when your time in this business draws to a close, will all your efforts have been enough to ensure a safe arrival at your desired destination?
Whether your goal is a target capital sum for a bigger business venture, or perhaps a lump sum for an annuity, the fact remains there are some serious financial sums to do.
Value is the key to accessing your planned exit. But how do you define the value? Who determines if what my business has is valuable? And exactly how much value do I need in order to exit safely?
The root answer can be seen in the following statement: "The net profit of a business is the source from which all earning potential is derived for an owner."
Net profit is essentially what goes into your pocket after all deductions inc. tax are parted with - this take home pay is the real value of the business to the owner. At your time of exit the net profit generated by your business will be the most influential factor in determining your exit value.
If you know what your desired exit value is, there is a simple calculation for deriving your business's required net profit. Usually, for the sake of robustness, an average net profit is calculated over the last 3 years of your tenure as owner.
Like most small business owners, after this type of 'exit value readiness' calculation, you may realise there is a significant gap between the actual asset value of your current operation (net profit) and your desired exit value. In order to close the gap, it's quite simple. You are going to have to inject some additional net profit into your enterprise and do it so you reach maximum net profit before the last three years of ownership (if you've not started already, there is no time like the present!).
So where should you start? By increasing your sales revenue - of which there are only three ways to achieve this:
1) Increase number of customers
2) Increase the frequency of purchases from existing customers
3) Increase your prices
The bottom-line here in achieving the above points is marketing. DIY marketing is indeed an attractive option for cash strapped owners, however for those seeking real returns and results, a professional marketing strategy is the only answer.
A professional marketing consultant for small businesses can build profitable systems into your enterprise to leverage real competitive advantage, ensuring your target customers prefer you in relation to the competition - even if they have to pay a premium!
A smart marketer will always seek to give you a competitive advantage in an area which is not easily imitated. Perhaps a person, skill set, brand identity, core competency, or commercial relationship. This prevents your competition from simply eroding your advantage and leaving you off the pace again.
Invest in a small business marketing consultant today and set your sights on a satisfactory exit.
Small Business Marketing Professional http://www.smallbusinessmarketingprofessional.com is a full service marketing consultancy assisting UK small business owners build intelligent systems targeting increased customer sales, net profit and exit value.
Contact us today for free marketing assessment... letstalk@smallbusinessmarketingprofessional.com

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