8 Value Enhancers for Your Business

Tom Wright, a commercial business broker and president of Century 21 T. L. Wright Realty in Cobleskill, N.Y., recommends these steps to increase the value of your business:

  1. Cut the fat. Eliminate unprofitable or nonessential services.
  2. Renegotiate or cancel problem contracts and leases.
  3. Upgrade automation systems and office equipment.
  4. Evaluate salespeople and office staff; terminate marginal and nonproductive people.
  5. Clean up your financial statements. Remove owner perks and nonessential expenditures. Improve your bottom line to reflect maximum profits.
  6. Make sure a solid management team is in place who are willing to stay with the business, advises Beatrice Mitchell of investment banker Sperry, Mitchell & Company, New York City.
  7. Refinance any debt at more favorable rates, if possible.
  8. Reappraise assets (especially your office building, if you own it) that may have appreciated in value.
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