Maximizing Your Business Valuation

By Joshua Liberman, President, Net Sciences, Inc., ASCII Group Member Since 2013

The old adage most IT businesses were started by techies, not business people still rings true. But when it comes time to sell, potential buyers will be savvy individuals who grasp the details of business valuation. So let’s focus on maximizing your business valuation by developing and documenting processes and procedures, building client relationships, learning your tools, and living by your numbers.

Developing And Documenting Processes And Procedures

Most small IT business owners have a gut feeling for the need to create processes and procedures, document and implement them. Many also realize the more similar your clients’ environments are, the easier they are to manage and the more profitable your business will become. But it is also important to understand the concept of moving your work “down the cost chain” by turning complicated processes into a series of smaller, less complicated, and well documented steps that can be executed by lesser skilled personnel, at lower cost. Rolling these all together and thoroughly documenting every aspect of your business makes the difference between the good and the great, as well as the difference between getting by and being highly profitable.