Key Factors That Add Value to a Small Business

One of the very first questions that business owners really want to know is: How Much Is My Business Worth?

A fair determination of a firm's market value is essential to insure proper compensation for years of hard work and personal investment. The following are some key factors that add value to your company and would be part of what is considered in the business' overall assessment for the marketplace.

Company's position in its industry
Proprietary know-how
Trade secrets
Trade names
Copyrights
Trademarks
Patents
Engineering drawings
Proprietary designs
Customized software programs
Customized or proprietary databases
Quality of workforce
Training procedures
Employee manuals
Systems and procedure manuals
Customer base
Mailing lists
Supplier relationships
Favorable bank financing and credit terms
Reputation
Location
Licenses
Advertising campaigns and materials
Work backlog
Contracts
Quality of capital assets
Growth potential
Owner financing participation
Owner training provided
Owner's discretionary earnings