What is Your Company Worth? Factor 11: “What Does Your Company Do?”

When someone asks, “What does your company do? Does your answer make them lean in... or tune out?

If your response sounds like every other business in your industry, it may be costing you more than attention. It could be affecting your company’s value.

Buyers are not just looking at revenue, operations, and systems. They are also looking at market position.

There is a big difference between saying:
“We distribute medical supplies.”

And saying:
“We supply every major hospital in our region with cutting-edge disposable medical products.”

One sounds ordinary.
The other sounds like a business with influence, traction, and a strong market position.

That matters because buyers are drawn to companies they can feel proud to own. They are willing to pay more for a business that stands out, leads in a niche, or has a position competitors cannot easily copy.

If you want to increase the value of your business, get clear on what makes your company different.

Ask yourself:

• Where are we a leader?
• What do we do better than others?
• Why would a buyer see us as hard to replace?

If your answer to “What does your company do?” sounds too general; it may be time to strengthen your position and message.

A business that stands out is often a business that sells faster and for more.

 

For more leadership tips, check out Pam’s blog on 8 Things Exceptional Bosses Constantly Tell Their Employees.