It is very satisfying to be your own boss and employ other people, but it’s just as satisfying to be able to see the value of your business increase over time.

Remember that your business is a commodity that can be bought and sold just like any other commodity and in the same way that people are prepared to buy quality commodities at a premium the same applies to your business.

Even if you are not ready to sell your business just yet, you still need to keep close tabs on how much it is worth on the market, if not just to measure how far your business has grown. These are a couple of tips that will help you increase the value of your business without costing you an arm and a leg.

Maintain Proper Financial Records

Make sure that you have a proper financial and administration management process within your business. Ensure that all financial transactions within your business are recorded and that the business has a monthly set of management accounts on record

Register Your Business With Relevant Authorities

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Ensure that you are registered with all the relevant authorities that govern your business e.g Taxes, company registrar, annual returns, worker’s compensation fund, levies, health and safety etc

Keep A Clean Bank Record

As difficult as it may seem, especially when you are starting out, you need to maintain a clean record with your bank. Do not issue checks if there is no money in the account, rather negotiate further credit terms from your creditors.

Be Adequately Insured

Make sure that you are adequately insured personally and as business, especially if you are the key person in the business and most of the proprietary business information rests with you.

Build Your Balance Sheet

As you grow the business, build your business’ balance sheet in terms of assets. If you can buy the premises that you do business out of rather than lease. Deposit spare cash (if there is any) in such instruments as call accounts, deposit accounts etc. Always be on the look out for short to medium investments that you can invest in should you have “spare” cash.

Hire Good People

Always hire good people even if they cost you a bit more than your typical average employee.

These tips will enhance the value of your business significantly if you follow them religiously and again they do not cost much. Also remember to pay always pay your taxes.