How to Maximise Your Company’s Value Through Marketing?

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Marketing converts business goals into outreach approaches. Marketing’s influence should be evident at every stage of a company’s life cycle:

  • In a company’s formative years, market awareness – as well as validation – are usually the main priorities, and tactics which should support that.
  • As a business matures, its marketing endeavours begin to reflect the need to achieve widespread adoption.
  • When owners are thinking about – or actively pursuing – an exit, communicating its successes and competitive differentiators frequently move to the front of the owners’ marketing

A business has value when it may exist separately and separately from its owners, when it has adopted a structure and culture of its own, or where there are processes, methods, products, property rights or anything else which permits the business to continue as its own entity.

Develop A Strong And Stable Management Team

A business which has a strong management team, allowing for fundamental activities to operate independent of the owner, will charge a higher price. The depth as well as stability of the management team are very important factors in the valuation analysis by a buyer.

In many businesses, sales as well as marketing could be very dependent upon the owner. This can be a major value detractor. If most of the key account relationships live with the owner, buyers will factor this risk into the valuation or the deal structure. A part of the price could become contingent upon the owner remaining with the business to maintain continuing customer relationships.

Be The Best

Your business needs to be the best it can be at what it does, without attempting to be everything to everyone. A company that knows its customer segments, their needs and language, as well as how to request a response from them is a lot more valuable as opposed to one that is a mix of everything, or an unknown in its market.

Demonstrate Sustainability Of Earnings

Revenue and earnings – which have been steadily growing over several years, versus earnings that fluctuate dramatically – will drive a higher valuation. Year-over-year growth shows a solid operation which is gaining new customers and/or market share.

Dramatic fluctuations in revenue often indicate that either product demand may be subject to outside factors, or the business has experienced problems, indicating management is not stable.

It makes sense to have a written plan describing future growth and how that growth will be achieved based on industry dynamics, increased demand for the company’s products, new product lines, market plans, growth through acquisition, and expansion through augmenting territory, product lines, manufacturing capacity, etc.

Strong Relationships With Customers

Goodwill, such as your reputation as well as brand in the minds of your current and prospective customers, is considered to be an asset on your company’s balance sheet. You establish this over time by treating individuals right as well as maintaining good relationships.

If you expect to sell your business someday, or if you just want to have this type of option, this is something which you need to make a priority throughout the business’s life. You can’t just begin doing it well suddenly in the final year.

Get in touch with the Digital School of Marketing

If you would like to become a marketing guru then you need to do our Marketing Fundamentals Course. Follow this link to find out more.

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