The final blog in this 5-day series follows on from increasing value, price, expanding your business and ideas on efficiency, so please have a read if you missed them. Enterprise value is a key area for most companies, no less for your trades business. I hope you enjoy the ideas I’ve put forward and we look forward to seeing your business grow.
The last piece in our puzzle is enterprise value or the value of your business for someone to buy it. This is a complex area and well worth getting independent business support if you wish to target it specifically, however, there are some great quick wins to consider.
- Recurring Revenues. This is where you have an agreement which provides you guaranteed income in exchange for your services over a period (e.g. 1, 3 or 5 years). A great example of this is a PPM contract, which you have seen can easily be implemented.
- Software Licences. Now, this may sound like a massive departure from your existing Trade services business, however incorporating software licences into what you deliver, provides a revenue stream and a customer for a much longer period than the initial electrical job. Examples here include the following list, which all have their own return on investment for the customer and will drive electrical installation revenue to fit.
- Emergency Light Monitoring software
- Power Factor Analysis and Voltage Optimisation software
- Energy monitoring software
- Cloud storage for compliance and governance documents (no install revenue)
- Sales Strategy. Having a good sales strategy with sales teams, trained, and delivering with KPIs and targets are one of the best ways of adding enterprise value to a business. Whether inside sales (via telephone) or traditional business development sales out on the road (depending on the type and level of business you have), this can be a great way to expand and add value.
I hope you can see that by making sometimes quite small changes to the way you operate; you can have a significant impact on your revenues and more importantly profits. The approach in this blog series is from my own experience, but I would love to get your view on what works for you (and what you have tried and did not work). If you have anything you think might be of value, please share in the comments, via socials or by visiting our website. And of course, please check out the job management software ServiceM8.
You can find out everything you need to know on our website and even get FREE training and an extended FREE trial. Just visit Why we think ServiceM8 is the right tool for you.