When a person is buying a product, what are the things on their mind?  They want to get value for their dollar, so they don’t want to pay too much.  But they also want to get a quality product, and might be willing to spend a little more to get it.  However, sometimes, the extra value just isn’t worth the extra price, and a product with fewer features might be chosen because it costs significantly less.

Cost is an important factor, but it isn’t the only one, and it gets balanced against other factors as the person weighs their decision.

The same thing can be said about the value of a business.  The financial angle is only one of many.  While it is probably the most important factor when determining the value of any business, other things do come into play.

A company with a strong bottom line and nothing else is going to be difficult to sell.  Selling a company isn’t about having value, it’s about demonstrating that value.  Company owners should strive to show potential buyers that their company is well establish and has potential to keep growing.

Reputation is a very important factor in the value of a company. A company that makes a lot of money through unethical practices is not one that is ready to sell.  Mainstream buyers aren’t interested in getting down and dirty to save a few bucks.  They want to buy a clean business with a good reputation.

A company’s appearance also contributes to its value.  Companies with physical locations should keep clean offices and warehouses.  Employees should be well dressed and hygienic.  Online companies should have good looking and well designed web pages that are user friendly and easy to read and interface with.

Remember that potential buyers are looking for something they can be proud of.  Their primary focus will be how much money the company can make, but supporting factors will make them much more likely to see the true value of a company than any financial report will by itself.

This also gives company owners with weaker companies a chance to really put in the effort and show that all the tools are present for a money making company, even if the numbers don’t show it just yet.

Remember that price isn’t everything, and a company is much more than the sum of its financial records.