How to Make A Small Business Worth More Money

justice-423446_1280Whether you are building your small business with the hope of creating a legacy for future generations or selling to finance a comfortable retirement, every Florida business owner should be concerned with adding value to their business. What owner would want to spend their entire career building an enterprise, particularly in expensive West Palm Beach, which is ultimately unmarketable because of legal issues? Below are a few suggestions on how legal preparation can increase a business’s value:

  1. Non-compete agreements with certain employees- Many businesses rely on the relationship their employees create with their customers to create a long-lasting and profitable client base. By way of an example, associates in medical practices often sign non-compete agreements.  The employee who develops client relationships could take all the clients in the event the employee decides to open a similar business in the same town and decimate your client base. Ensuring these employees have an effective non-compete agreement in place protects your business from your employees becoming your competition.
  2. Trademark registration- You have spent several years establishing your business’s name and reputation. Without proper trademark registration, your business is exposed to competing businesses stealing your brand and either taking away new customers who think they are using your company or, worse, damaging your reputation by providing subpar services.
  3. Sign and/or Update the Operating Agreement/ Shareholder Agreement- A business is only as strong as the relationship between its owners. A limited liability company is controlled by an operating agreement and a corporation is controlled by a shareholder agreement. Having a written agreement in place among the owners may seem unnecessary and formal, but it adds value to the business because it creates a framework for potential buyers or investors to step into the business.

As always, a person with legal questions should talk to a qualified attorney. We serve business owners throughout Florida, particularly in Wellington, Royal Palm Beach, Loxahatchee, Lake Worth, and the Palm Beach communities.

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