Three Lessons 2020 Taught us About Building Value in 2021

By Carla Haddad

Business Transition Alliance
Three Lessons 2020 Taught us About Building Value in 2021

2020 was a difficult year. For most business owners it was a year of uncertainty, dramatic change and forced adaptation to new ways of working. Not only have owners had to cut back on expenses and revamp business models, they have also had to put decisions on hold to adjust to a new, unprecedented reality.

So what has this done to business value? And what does it mean for owners who were planning some sort of exit from their business in the months ahead – and counting on their business having a certain amount of value?

Building business value takes time, and while some of that time may have been lost over the last few months, it is essential that owners now focus on rebuilding their organization’s operations and long-term sustainability. Business valuation is a complex process, and many different factors need to be taken into consideration to determine how much an organization is worth. We have narrowed this down to three lessons that came out of the past year and that owners need to build on in 2021.

1. Embrace digital transformation

According to Gartner, the pandemic has accelerated the need for organizations to move online. Investments in paid, owned, and digital channels account for almost 80% of multichannel marketing budgets in companies.

Taking advantage of digitalization can ensure that your business is prepared for a crisis such as COVID-19. The pandemic has shown us how important it is to have a digital presence and be able to maintain your workforce remotely.

Ensuring that your business is up to date with the newest digital trends will increase its value when you are ready to sell, and it is also a great shield against future downturns or crises.

2. Engage your employees

Owners must involve their employees in the planning and goal setting process. Motivated employees are the key to businesses working through these uncertain times and serve as a viable option to take over when the owner wants to sell or step back. Any third party looking at potentially taking over your business will want to know that the employees play a significant role in the day-to-day operations.

Having employees aligned with the company’s mission and goals will enable you, as well as your employees to analyze what tweaks or adaptations you need to make as you pivot or revise your business approach.

3. Maintain strong customer relationships

One thing the pandemic has taught us is that we are all in this together. The result of this experience is that owners have developed a better understanding of their customers. Customer relationships are becoming more individualized and customers have come to expect a certain level of service that owners need to respect and maintain.

Having a strong and committed customer base not only makes for a more profitable business, but it makes the business more valuable when it comes time to sell.

BTA Helps

Building business value takes time and it is a daily task. At BTA, we are always looking for ways to assist you and your business through any step of your transition, especially during tough times. Please contact us at contact@btahelps.com for more information.

YOU ARE NOT ALONE

Contact us to learn how we can help your company.