Adding value to a small business can be eye-wateringly expensive, especially if you are relatively new, with little solid capital in place. Indeed, even if you had all the money in the world, it would still take a deep understanding of what works well within your company, its long-term aspirations, as well as how to spread your investment equally throughout the company.
Put simply, adding value to your small business is not the work of a moment.
Despite this, it is possible, as long as you think carefully about what your business most requires in order to grow and prosper.
Here are three potential ways to add value to your small business:
Upgrade your manufacturing machinery
If your small business has a production or assembly line, then you are probably best off focusing your attention on making it as efficient and profitable as possible. This is the beating heart of your company, without which every other aspect would become null and void.
Spend time on the production floor, assessing first-hand how the day-to-day processes work. As a bystander, you will quickly spot strong and weak points along the chain, especially if you talk to members of staff and seek their opinion.
One of the best ways of improving the efficiency of a production line is to mechanize it. By this token, you could invest in new machinery, such as a conveyor system. There are plenty of conveyor companies you can use, and it could well add a significant amount of value to your business.
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Combine forces with a competitor
Alternatively, if you want to add value to your company without directly investing any more money into it, you could enter into a joint venture with another company.
Joint ventures are often misunderstood, because there isn’t one set format to follow. A joint venture is essentially a contractual agreement between two businesses, whereby they temporarily pool their resources to reach an agreed commercial goal.
For instance, if you ran a hardware store, and you wanted to sell a certain product to a new customer base that you would struggle to market to, then you could find a business or individual with access to that market – most commonly through an email list.
In this example, both businesses would receive a cut of the sales, and make it clear to the prospects that the offer is only temporarily on the table, rather than a permanent tie up between two brands.
The benefits of a joint venture are easy to see. You can use your joint venture partner as a resource to create more sales, expand your customer base and grow your brand.
Invest in staff and real estate
Another approach for adding value to your small business is to grow it, by investing in staff and real estate. By expanding your team of employees, you can nurture a greater depth of talent, allowing you to create more innovative and (hopefully) successful products, as well as lessen the workload put on you as the owner.
Theoretically at least, the more staff you have, the greater your ability to produce and remain flexible to changing market trends and wider economic developments.
Of course, you will need more corporate real estate in order to house your team, which will make it easier for you to run the business. Additionally, owning prime real estate adds an asset onto your company balance sheet, helping you to become a more valuable entity as a whole.