Transferable value is a term that refers to the value of a business that can be transferred to new owners or investors. It is the value of the business that remains even when the current owner is no longer involved. This value can come from at least 7 areas: Some are Leadership team/decision making, Financial Controls, Diversity of Customers, Competitive Advantage and IP. In this blog post, we’ll explore why transferable value is so important and some key areas where it can be found.
What Is Transferable Value?
When a business has transferable value, it means that the value of the business is not solely dependent on the owner or a small group of individuals. This makes the business more attractive to potential buyers or investors, as they know that the value of the business will remain even if the current owner decides to leave.
How to Build Transferable Value In Your Business
Understand Your Competitive Advantage
A competitive advantage is how a product or service is better than the competition, it’s unique and can be quantified, and it’s what makes the business stand out in the market. It’s the unique selling point that sets it apart from the competition and it’s what provides sustainability to the business even with a change of ownership.
Automate Processes to Increase Transferable Value
Another key area where transferable value can be found is in automating processes. By automating repetitive tasks, a business can create efficiencies that can be transferred to new owners or investors. This can result in significant cost savings and increased productivity, making the business more valuable in the long run.
Intellectual Property (IP) Can Drive Transferable Value
Intellectual property (IP) is another area where transferable value can be found. IP can include patents, trademarks, and copyrights, and it can be a valuable asset for a business. By protecting their IP, a business can ensure that the value of their brand or product remains.
Invest In People To Grow Transferable Value
Finally, investing in people is another key aspect of transferable value. By investing in the development and training of employees, a business can create a skilled and knowledgeable workforce that can run the the day to day business with out the owner or CEO. This can result in a more stable and sustainable business in the long run.
If you’re interested in learning more about how to optimize transferable value for your business, we invite you to join our panel of experts on February 9th for a discussion on this important topic. Register now to reserve your spot and gain valuable insights from industry leaders in the field.
Summing Up
These strategies and things to think about are just the tip of the iceberg when it comes to optimizing the transferable value of your business. If you want to really unlock the strategies to skyrocketing the transferable value of your business, my upcoming event: âMaximizing Transferable Value: Game Plans from the Expertsâ on February 9, 2023 is a must-attend. Yes, you are invited. This event will be moderated by Carlos Garrido, Co-Founder and CEO of Absolute Sales with a great set of expert panelists. There will be people who sold their businesses as guests in the audience, sharing their wisdom, lessons learned, and what they wish they had known beforehand. It will be a fantastic opportunity to learn, network, and receive our best guidance.
Learn more about this event and register here.
If you would like to get in-depth with me and get serious about learning more about my techniques and ways in which you can take your leadership to the next level, my executive coaching programs are extremely popular and come highly recommended. Coach4Execs has the tools to help you achieve growth and exceed your own expectations. Letâs talk.
Georganne Goldblum,
CEO of Coach4Execs
Georganne
January 23, 2023
