There’s a lot that goes into a business valuation, including capital structure, future earnings prospects, and assets and liabilities, according to Investopedia. However, that isn’t a comprehensive list. A seldom talked about piece of the value puzzle is marketing. While marketing may feel like a frivolous cost in the pursuit of raising your business’s value, marketing has a direct tie to your business valuation.

Communication

Marketing allows you to have a direct channel of communication with your clientele. This puts you in a unique position to receive and act on feedback from your active audience in real time. This call-and-response leads to more loyal customers. Delivering high-value content such as videos, informational blog posts, and whitepapers can strengthen the trust your customers have in your business.

Guiding the Focus of your Business

When you’re directly communicating with your audience, you can guide their focus towards specific things. This can include things such as new product launches, important announcements, and more. The more eyes you have on a new product, the higher your sales will be. Your CTAs have to be seen to be clicked. 

Hard Numbers

Marketing provides qualitative analytics that can be used in numerous ways. These tangible results give you insight into what your audience really needs from you and your business. Through careful analysis, you can track things such as conversion rates, customer acquisition, and customer retention. With this detailed data, you can alter your marketing to continuously grow and maintain your audience. 

Conclusion

Marketing can be strategically used to enhance your business’s value. By creating an open channel of communication where you can give announcements, receive feedback, and gather hard data, you can change your business practices to increase your market value and future earning prospects. This manifests as a higher overall business valuation. 

If you’d like to learn more about how to raise your business’s value, read about what not to do here or connect with an experienced advisor at Stony Hill Advisors today!