How a top-performing sales and marketing engine will increase your business valuation

What does a good sales and marketing engine look like?

As a business owner, when the time comes to sell your business, if you want to maximise your business valuation, it’s vital that you can prove to any potential investor that your business will continue to have strong growth into the future, long after the sale. You will also need to show that sales will continue if you exit the business.

You can do this by ensuring that you have a top-performing sales & marketing engine in place, with clear processes and automation, healthy numbers of inbound leads, a healthy pipeline of likely future sales and a team of top performing salespeople to convert those opportunities.

Crucially, you’ll also need to show that your sales do not depend heavily on one individual – usually the owner – or a small group of top- performing salespeople who could potentially leave the business at any time. Remember, single points of failure can significantly decrease the value of your business.

If you are dependent on a handful of top performers for all your sales, then your pipeline will be seen as exposed should those people leave, which will greatly increase the perceived level of risk in the mind of the buyer and ultimately, reduce your valuation.

Questions you must answer to increase your business valuation

When it comes to selling your business, it will be important that you can answer the following questions:

> Do you have a top performing, well-trained sales team?

> How important is the founder’s role in any sales process?

> Do your sales people have autonomy over the sales process?

> What is your average customer acquisition cost?

> Are your sales opportunities predictable or do they happen through chance and good fortune?

> Does the business have a good CRM system for managing leads, sales, and clients?

> What percentage of your leads convert into paying customers, or from trials to activated clients?

> How much of your sales and marketing process is automated?

> Do you have a large database of engaged clients and prospects, particularly opted-in email lists?

> Do you have high numbers of engaged followers on social media? Do you have a high number of unique website visitors?

Building a strong and high-performing sales and marketing engine will turbo boost the growth of your business, will leave a very positive impression in the mind of the buyer and will significantly increase your business valuation.

Download our Free 54-Page Guide: How to Seriously Increase the Value of Your Business

This article is taken from our free 54-Page Guide for Business Owners and Directors: How to Seriously Increase the Value of Your Business.

The guide will help you to get the sale value you want and deserve, and ensure that when the time comes to sell your business, your guts, drive, commitment and sacrifice will be worth it – literally.

You will also get a Valuation Scorecard to use in your own business to increase your business’s value.

Find out more about the guide and download it here.

Alternatively, contact us today to speak to our Uncommon advisors. Tell us about your exit plans (in confidence) and find out how we can help you to grow the value of your business from day 1.