The most expensive painting ever sold is Leonardo da Vinci’s Salvator Mundi, which sold for a mere £323 million in 2017. It’s a very nice painting. And that’s a very large sum of money. So, what is it that makes something like this so valuable? The painting itself, as far as materials go, is probably worth no more than £30. So why would someone pay ten million times that amount?
The answer is a combination of quality and scarcity. Very few people could paint like da Vinci. And there aren’t that many da Vinci paintings about. So what about one of your most valuable assets, your business? How can you ensure that it’s valued as highly as possible?
Build a business you love.
Luckily for us, da Vinci loved painting. If his passion had been fishing, the world may never have heard of him. But da Vinci was not only extremely talented, he was also extremely driven. He didn’t even find time to get married or have children. He loved painting and coming up with amazing ideas.
Most of the very best businesses are born out of a passion. The owners have a desire to do something different, to build something that people will love, to make the world better. They have strong values and a powerful core purpose.
People can sense when someone has passion. Such businesses tend to attract customers, employees, investors. The owner doesn’t just use their head, they use their heart. Businesses that are just going through the motions of making money, tend to have the opposite effect. People quickly see them for what they are, short-term, money-driven, shallow.
But what if you’ve fallen out of love with what you’ve built? There are several options. Get out now and try to build something that you do love. Reconfigure your company to try and get back to what you loved about your business in the first place. Bring in people who love your business, and let their energy and passion drive it forward.
Love is not a word commonly associated with business, but it should be. Building a business you love is uplifting, energising, confidence-building. It’s something every owner should aim for.
Build a business that sustainably grows.
The keyword here is “sustainably”. If your sole aim is to get rich quick, chances are you won’t. James Dyson spent 5 years and created over 5,000 prototypes before he created the world’s first bagless vacuum cleaner. He’s now, not only the richest person in Britain, he’s built a strong, sustainable business.
They say “you reap, what you sow.” This statement is particularly true of business. It’s not just about the profit you make, it’s about what you put back. Businesses like Amazon didn’t become giants by spending all their money, they did it by re-investing, by looking for new growth opportunities.
Sustainable also refers to the world in which you operate. A business of value is one that considers both the planet and the people who live on it. Customers don’t just expect this, they demand it. The same goes for Investors. The mantra of the medical profession is “do no harm.” It needs to be adopted by the business world too.
The value of your business won’t be just judged in terms of cash, it will be scrutinised with regards to the environment, society and how you treat those who work for you.
Build a business of value so you can exit on your terms.
Exiting your business may not be on your radar right now, but it should. An exit plan is a health insurance policy for your company. As the pandemic has taught us, we need to be ready for any eventuality. Ill-health, the loss of a major team player, a take-over bid, departure of a main client, the requirement to fund another project. There are many reasons why you may need to sell some or all of your business. You owe it to yourself, your family, and your team, to have a robust exit plan in place.
But what if your business isn’t worth enough to sell right now? Then it’s up to you to ensure that it’s valued highly enough to make a sale worthwhile.
That’s where Value Builder comes in. It has helped over 40,000 businesses worldwide increase their value. In fact, within 8 months, companies are, on average. valued 18% higher. A short survey will allow you to find your Value builder score. Getting this score will allow you to:
- Diagnose what may be holding you back from creating a company that can fully thrive without you.
- See how an acquirer would evaluate your business, enabling you to focus today on what will be important down the road.
- Identify hidden things that may quietly drag down the value of your business so you can eliminate them before they become a problem.
- Identify the part of your business that will have the most value to an acquirer so you can invest more resources in areas likely to be most attractive to an investor or acquirer.
Value can be difficult to assess in areas like art. But in business it’s straightforward. To find your Value Builder Score click here.
Whether your business is a work of art or a work in progress, it’s vital you know your worth.