One of the best ways to create a new income stream and generate money without having to punch a clock is to build a startup business. A startup business is one that has just been started and it can be in any industry or niche of your liking.
Of course, one of the hardest things about building a startup is actually getting it to a point where it’s generating enough income to have a noticeable impact on your finances. You’ll likely have to invest money and take a net loss for a certain period of time before you break even.
Image Credit – https://unsplash.com/photos/wawEfYdpkag
But, there are ways that you can shorten the curve and help get your startup off the ground. In case you’re interested in building a startup or you already have one and want some extra help boosting your profits, here are 6 ways you can increase the value of your new startup business.
Cultivate Your Brand
Image Credit – https://unsplash.com/photos/QckxruozjRg
Your brand is how you are known to and perceived by the world at large. In order to build your brand and gain a larger following, you need to refine it and make sure that you’re offering real value to people. This can mean everything from designing an eye-popping logo to investing heavily in marketing efforts as well.
However, building your brand is more than just what logo you use or coming up with a catchy slogan, you also need to provide value to people. When you provide real tangible value, people are more likely to spread and share your content with others, expanding your reach. Everything you do should be part of a marketing funnel, with the end goal being to convert new visitors into repeat customers.
Content is critical here, and you need to offer it in various forms. Whatever industry you’re in, you want to build out content related to topics surrounding your business. The more variety you can come up with while still relating it back to your own products, the better. You also need to vary not just the topics, but the type of content itself.
This means including articles, blog posts, short blurbs, long-form videos, short videos, infographics, and anything else that might catch the attention of potential customers. Even if they don’t ever plan on buying product from you specifically, if somebody else likes or shares your content because they find it helpful, they’ve unknowingly just participated in your marketing efforts.
Nobody wants to help a random person sell more products, but they do want to recommend useful products and advice to those in their social circle, so getting as many people as you can to do this for you will go a long way towards boosting the value of your startup.
Scarcity is Key
One of the easiest ways to boost your startup’s value quickly is to offer a service or product that is scarce. This is easier said than done, but there are new opportunities arising each day as well. Intellectual property can be a great way to cultivate scarcity, as even if others are able to come up with the same products or advice, you’ll own the patents or copyrights to your specific offerings.
Supply Needs Demand
Image Credit – https://unsplash.com/photos/SYTO3xs06fU
Having a product or service that is scarcely offered by others is one key to boosting your value, but you also have to make sure there’s sufficient demand for it as well. Especially if you’re using a valuation calculator to determine how much value your business has to potential investors or those looking to buy your business, having a large demand for your product or service goes a long way. This means your business isn’t set in stone at its current value, but also has room to grow as the market expands.
Perception is Reality
Image Credit – https://unsplash.com/photos/rxpThOwuVgE
Real value and perceived value are two different things, but don’t tell your investors that. The perception of your value is based solely on speculative and psychological factors, as opposed to real numbers and metrics. Everybody wants to get in on the next big thing before anybody else does, and many investors are willing to take a leap of faith to do so.
This is where your perceived value comes into play in terms of How to value a business. Using social media and getting into the pocket of influencers is the easiest way to boost your perceived value.
Controlling the narrative surrounding your company on a proactive basis as opposed to a reactive basis is crucial to hiking up that perceived value. Just remember not to over-promise, or you could be on the hook for fraud.
Watch Your Growth
If you were an investor, would you want to buy a company that hadn’t gotten off the ground yet, a company that had gotten off the ground but stagnated in growth, or a company that had just gotten off the ground and was showing steady growth? If you chose the last one, you’d be wise.
As such, the best time to generate capital for increasing the value of your business even further is when you have shown steady growth, preferably for the last 3 years in a row. Factoring in things like the cost of employee benefits, the number of new employees, and general expansion metrics will help you best determine when your growth is peaking.
Be Prepared to Scale
Let’s say you’re able to secure the help of a famous influencer, are you prepared to handle that surge of new customers? If you aren’t, then you won’t be able to take advantage of such a massive opportunity. Implementing automation is key here, as it will take the load off when it comes to monotonous processes. Having as few human workers as necessary will minimize the number of potential mistakes and hiccups, a key factor in successful scalability.
Hike the Value of your Startup with these Surefire Tips
If you want to raise your startup’s value and generate capital for continued growth or sell your business to the highest bidder, any 6 of the tips in this article are guaranteed to increase your chances of doing so. Implementing all 6, however, is nearly a lock to amplify the value of your startup and get you one step closer to achieving your goals.