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Hey everybody, Dan Holstein here helping your business take flight.
And this is episode two in our 10-part series on growing your business valuation.
And what we're covering today is your X factor.
Now you might be wondering what is an X factor?
Well, it's a unique quality that your business has that makes you stand out from your competition. It's what brings your clients back again and again. It's what keeps them loyal. It's what makes them never even consider working with the competition. So it could be just how you deliver your services. It could be the speed with which you deliver your services.
Maybe it's a proprietary technology that you've developed or some intellectual property
that no one else has. It's something that really makes you stand out and be really valuable
for your target market.
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So why is it important to have this X factor?
Well, the first thing is you're going to stand out from your competition so you're not going to
get shopped on price. You're not going to get lumped in with everybody else.
You're going to be seen as unique and desirable which means you can actually charge a bit of a premium for your products or services.
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The next thing is when it comes to business valuation at time of sale, a buyer's going to
want to look for that differentiation as well. They don't want to buy a commoditized business.
They're going to want to buy a business that's clearly valued and respected in the marketplace, has a bit of a pricing premium, has better cash flow, better profitability and upside in the market than all the other competitors.
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So this week, give some thought to what is the X factor in your business? What is that amazing quality that you have that maybe you're taking for granted?
You're not even thinking it's all that important that your customers continue to come back to you for. You might even want to do a customer survey to find out what your clients truly value
about working with you.
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So, if we're not already connected, please connect with me here on LinkedIn. And if you're seeing this on YouTube, please hit subscribe and also hit the notification bell so that you can
get upcoming videos as they come out.
I wish you a fantastic week and we'll catch you next time in episode three of our business valuation series.