10 Points to be considered for increasing business valuation in long term to attract bankers and investors :

1.      Maintain an increasing trend in operating profit [i.e. Profit before interest, tax, depreciation] year on year basis.

2.      Customer Service and Customer Satisfaction levels should be increased year on year basis.

3.      Authority and responsibility for various activities like Purchasing, Marketing, Accounts & Finance, etc. should be delegated among different persons. Only one person should not be authorized / responsible to take all the decisions and manage all operations of the business.

4.      Debtors Ageing period should be minimized to reduce risk factor in business and creditors ageing period to be minimized to increase credibility.

5.      Books of accounts should be maintained properly. Expense of personal nature and other expenses not relating to business should not be recorded in books of accounts.  Both Audited and Unaudited financials must reflect 99.9 % correct profits and financial position at all times.

6.      Proper bifurcation between capital and revenue nature of expense must be done and accounted accordingly to give true and fair view of financial statements.

7.      Revenues of business should not be based on only one or two customers. Business should be done with various customers to reduce the risk.

8.      Strong internal control over expenses and operating cost should be placed in business so that unnecessary expenses are not incurred.

9.      Government dues, i.e. taxes should be paid regularly. Also other statutory requirements and compliances like filing returns, etc.  should be fulfilled regularly and timely.

10.    Proper documentation and vouching for day to day operations  should be done and properly maintained.