--- title: How to use business valuation to grow business value [video] description: James explains how clients use business valuation services to manage their businesses and optimise their return on investment. image: https://blog.jpabusiness.com.au/hubfs/1.%20Images/1.%20Stock%20Images/Business%20partners.jpg --- 28 March 2023 # How to use business valuation to grow business value [video] WRITTEN BYJames Price | JPAbusiness ![Business partners](https://blog.jpabusiness.com.au/hs-fs/hubfs/1.%20Images/1.%20Stock%20Images/Business%20partners.jpg?width=1000&height=667&name=Business%20partners.jpg) Our clients often seek a business [valuation](https://www.jpabusiness.com.au/business-valuations) in response to a 'significant event’, for example retirement or restructuring, a financing requirement, purchase offer and so on. We continue to offer these event-based valuation services, and always will. But as I explain in this [video](https://youtu.be/dPKKrcgVGSY), **clients are increasingly treating their businesses as an investment **and seeking our valuation services to ensure they are receiving the optimum return for that investment, both while running the business and also potentially on exit. ## How do I use valuation to grow the value of my business? The business owners who are using valuation in this way are generally **looking to enhance the long-term value of their businesses**. They want to identify the *key value drivers they can influence now** *– as well as adjust incrementally, over time – to improve performance and return. Many of these clients are people we have worked with in the past, providing [due diligence](https://www.jpabusiness.com.au/business-transactions/buying-a-business/due-diligence) and [valuation](https://www.jpabusiness.com.au/services/valuations) services as part of business purchase negotiations. By continuing to work with them, we are able to **use the initial valuation as a tool to identify their business’ key value drivers** and the ‘levers’ they can adjust to enhance value and operational performance. Some of those **levers have included**: - margins - cost to revenue - customer service - employee performance - productivity - staff utilisation - capital investment. Using the valuation process to identify these levers ties in very neatly with a business budgeting process and actually makes budget projections and tracking to these more relevant and accurate. When utilising valuation as a management tool in this way, we recommend having a valuation conducted or refreshed every few years. If you are interested in seeking a [market appraisal or valuation](https://www.jpabusiness.com.au/business-valuations) for your business, [contact](https://landing.jpabusiness.com.au/contactus) the team at JPAbusiness on 02 9893 1803 or 02 6360 0360 for a confidential, obligation-free discussion.   ![How to assess business value cover 2022](https://blog.jpabusiness.com.au/hubfs/1.%20Images/Updated%20document%20cover%20images%202022/How%20to%20assess%20business%20value%20cover%202022.png) Free ebook How to assess business value in small to mid-sized businesses How do you determine what a business is really worth? This ebook asks: How much Business Maintainable Earnings does the business generate? How much meaningful information do you have on the business's performance and overall business model? What is the point of difference and competitive advantage? [Learn more ](https://blog.jpabusiness.com.au/operator/how-to-assess-business-value-in-small-to-mid-sized-businesses-0-0) Share this Article Share this blog post on Twitter [mailto:?subject=Share%20this%20blog%20post&body=https://blog.jpabusiness.com.au/blog/how-to-use-business-valuation-to-grow-business-value-video](mailto:?subject=Share%20this%20blog%20post&body=https://blog.jpabusiness.com.au/blog/how-to-use-business-valuation-to-grow-business-value-video) Copied to clipboard Topics - [business value ](https://blog.jpabusiness.com.au/blog/topic/business-value) - [valuations ](https://blog.jpabusiness.com.au/blog/topic/valuations) - [exiting your business ](https://blog.jpabusiness.com.au/blog/topic/exiting-your-business) - [video ](https://blog.jpabusiness.com.au/blog/topic/video) - [business valuation ](https://blog.jpabusiness.com.au/blog/topic/business-valuation) - [growth strategies ](https://blog.jpabusiness.com.au/blog/topic/growth-strategies) About James Price | JPAbusiness James Price has over 30 years’ experience in providing strategic, commercial and valuation advice to Australian and international business clients. James’ blogs provide business advice for aspiring and current small to mid-sized business owners, operators and managers. #### Related Blog Posts ### [How to use valuation as a management tool [case study]](https://blog.jpabusiness.com.au/blog/how-to-use-valuation-as-a-management-tool-case-study) Most business owners only seek a business valuation after being prompted to do so by a significant... [Read more ](https://blog.jpabusiness.com.au/blog/how-to-use-valuation-as-a-management-tool-case-study) ### [How to value your business](https://blog.jpabusiness.com.au/blog/how-to-value-your-business) This blog post grew out of a chat I had with a prospective client – a young guy in his mid-20s,... 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