It's common for banks, potential investors, and creditors to determine your company's value based solely on your financial statements. This can be a mistake because often the financials don't come close to telling the whole story. Financials only present the tangible value. But what about the intangible value of your company? After all, your company is only worth what an acquirer is willing to pay and there can be a great deal of emotion involved in that determination. How many times have we heard of a company with hardly any revenues being acquired for millions of dollars? That increase in value is emotional value and that is what you should focus on building.

Here are some tips for building the intangible emotional value of your business which will turn into real dollars over time:

Focus On The Positive

You have probably heard the saying, "What you focus on, you become." That's the idea behind the Law of Attraction. When you develop a clear idea of what you want, focus on it and feel good about it, your mind will consider your wishes to be marching orders.

This also comes with the requirement that you must clear away the negatives - that is anything or any person who slows down your ability to advance and achieve your goals. Do you have employees or people in your personal life that create fires you have to waste time stamping out? They are a DISTRACTION from what you need to do to build revenue and value in your company and you must eliminate those distractions.

Create A Killer Team and A Killer Business Plan

To create a killer team you need to create positive employee motivation, treat your employees as if they matter - because they really do matter. Find out what really motivates your employees. Some people work for love. Others work for personal fulfillment. Others like to accomplish goals or feel as if they contribute to something larger than themselves. Surprisingly money is not always at the top of the list. In fact money doesn't have a long-term effect on employees. Time and time again, recognition has been shown to be the true motivator and secret behind increased output.

The killer business plan is a bit more difficult. You are in business because you have a unique solution to a big problem. Make sure your employees and your target market understand the problem you are solving and see your vision for success. Boil down everything in your business plan to just one or two sentences that will GRAB , motivate and entice. You can't build value if your business isn't enticing.

Build Your Intellectual Property

Intellectual Property is made up of all the patents, trademarks, logos, business processes, etc. that makes your business unique. That's your company jewels and you need to protect those jewels! A patent portfolio can be worth gold. A company recently sold for $425 million (with only about $30 million in annual revenue) because the company had locked in so many patents. That's what the acquirer bought. They didn't give a hoot about the financials.

Continually Work On Increasing Revenues

You should always be selling: to financiers, customers, strategic partners, staff, and strangers. That doesn't mean just selling your product or service - you are also selling your staff, your business and yourself.

Product Line Extensions are one means of increasing revenues. Let's assume you sell a super cool widget. What's next? The Son of Widget? The Platinum Widget? The Widget Extraordinaire? Map out your future product lines so financiers, partners, and staff can see where you are headed and how you plan to get there. That creates excitement!

New Sales Channels, any different way of selling, can also effectively increase revenue. Distributors, value-added resellers, outside sales forces, affiliates, joint venture partners, can all boost the value of your company. Of course you'll need to track the performance of your sales channels to monitor which ones are working and which ones are not.

Form Strategic Alliances with select partners. A LOI (Letter of Intent) with a partner isn't enough. You need a binding contract spelling out exactly what the terms of your deal are. Clarify how many widgets they will buy/distribute/co-market, the time period, as well as what happens if they default on the agreement.

Create a Compelling Demo of your product. This is key when you're in the zero or near zero revenue range. People need to see/touch/feel what the product will be like. Then they can envision your fabulous future and will want to become part of it.

If you do these things, the value of your business will be guaranteed to increase.

Performance Advisors can help you increase the value of your business. Contact Performance Advisors today at 602-579-5725 or email Performance Advisors today for increased value tomorrow.