Better Websites can Lead to Better Valuations

For the vast majority of history, businesses have not needed a website to successfully sell. Even now, there are niche businesses, perhaps secondary or government contractors, who have a few clients who know about them and are not really customer-facing. But for the vast majority of businesses, a website isn’t just a checkbox on a due diligence worksheet: it’s an integral part of your business valuation.

It’s Not Just a Shingle

Very reasonably, back in the 1990s, one could have thought of a website as a virtual shingle. You’ve got your company name and logo, maybe a few images, your contact information, and a “contact us” box. That allowed anyone who wanted to find you to do so, and it communicated that you were a real business (of a kind).

Today’s consumer (and business buyer) demands a lot more. Websites are:

• Your first chance to make a good impression. This means that your site needs to be updated and watched.
  • By this we mean making sure someone is keeping track of all the software updates that may be happening across your website. If you don’t do this links or images may break or become non-functional.
• Your brand on parade. Businesses these days understand the power of creating a brand experience. That means the fonts and colors that you use for your brand are there. That means you may have a chatbot to meet the customer right there instead of waiting passively for a “contact us” message. You’ve got customer testimonials, links to Google Reviews, and features of your team so that you’re not just an anonymous business.
• Lead generators. Those businesses who are utilizing best practices know that there’s nothing better than an evergreen lead machine, and a website and associated content is the best way to compete for those leads. Content includes:
  • Blogs (like this one) or podcasts (like ours) that show subject matter expertise or useful tips
  • Video content that can be oriented informatively like blogs or are more fun and whimsical. Video content can be shot in batches and then cut up into one minute slices to share on sites like Instagram and YouTube.
  • Google My Business Questions and Answers in which you can showcase that you are monitoring what the public is asking of you
• Lead receivers. If you are doing Google LSA or Adwords spending, you’re often going to take those who click through to a customized landing page or your website itself. Someone who is ready to buy needs to be impressed when they come to your site.

Longevity Matters

Part of what leads to the “authority” of websites is how many websites also link to it and how long it has been around. That means you can’t wait until you are planning to sell your company to suddenly put up a shiny new website as part of brightening the curb appeal of your business. You need time to build and maintain the website, as well as create a lead engine via content. While a website may take weeks to build, inhabiting and maintaining a website takes months and years.

Part of why a better website can lead to a better valuation will be part of the traffic and analytics you can present to potential buyers. They will see what you have been doing both organically (“free”) and via paid advertising and part of the value they will look to add will be to see what they can do above and beyond what you’re doing to bring in more sales using the website.

If your website is just a shingle or you’ve never thought of using it as a vector for leads, that’s going to be an area of investment for buyers, which will be something they may deduct from what they offer, as they know what we’ve articulated above: it’s not your grandfather’s business anymore; websites are really important.

Some of what we mentioned here was also discussed in a podcast episode which you can listen to here. If you need a recommendation for someone to help build or refresh your website, we know a few people: give us a call.