609-664-7955 gcaruso@artofbv.com

“Daddy, I know how we get money.” Said my 3 year old son in his very deep voice.

“How?” I asked.

“We go to the ATM” he said.

Well my son was right.  Prior to everything being cards and phones it was important to have cash and I would get my cash at an ATM at my bank.  Often this was on the way to a family dinner and clearly my son was watching and absorbing.

The ATM is really a lot like a small business.  You use a process to obtain money.   Also like your business – think about how disappointing it is when the ATM does not work?  Again, consistency creates comfort with an ATM and reduces risk (aren’t those two the same thing) with your business.  The more profits or money with the least risk increases small business value.

How can you turn your business into a reliable ATM and increase your business value?

  • Hire great people and train them and grow them.
  • Work on your systems.  “A great system is when ordinary people get extraordinary results every time.”
  • Develop tracking systems for key metrics and things like collections that are important but easy to ignore.
  • The less your business needs you the more valuable it is.
  • Implement how you can make your company more “Sticky.”  Sticky means your customers stick around.  Repeating work like taxes, integrations simplifying things for your clients but creating hassles to move (think about how you bank may have done this to you?)  Service contracts so you are the first call, etc.
  • Investigate the profitability of your different products and services.  Sell more of the high margin ones.
  • Develop a marketing and sales system that is independent of any one person.  Which would you rather own?   A fast food restaurant with no customer alliance to staff or a restaurant where everyone comes because of a wonderful Maître D’?

Ways to make your business run consistently like a quality ATM are endless.  Change and technology make sure this is a job that is never complete.  But, when you build your business to run like an ATM you will have more fun running it and you will increase business value. 

I’m a JD, CPA and Certified Valuation Analyst, and I know that valuation is an art. To find out more about professional valuation services for your business, contact me to learn more.