How Online Presence Boosts Business Value

There may come a time when you’ll look to sell your business or seek outside investment. When that time comes, it’s important to understand the worth of your company well. While a business’s value is influenced by many factors, its domain name, website, and social media accounts can substantially impact that number.

So, how does a business owner determine the influence their online presence has on their company’s value? There are a few key factors to consider when valuing the digital assets you’ve built.

What is an Online Presence?

Your business’s online presence is the part of your business identity that is made up of all the digital assets representing your company on the internet. This includes your:

• Custom domain name
• Branded email
• Social media accounts like a business Instagram or TikTok account
• Business listings on search engines like Google
• Digital marketing channels like email marketing and pay-per-click (PPC) ad campaigns

All of these assets are facets of your online presence, and each reflect a different hue of your business, and what it can offer investors.

How each digital asset benefits your business

Each component of your online presence functions differently. Representing your business through a diverse assortment of assets creates an overall healthier identity online, and makes the most out of the internet’s contribution to modern day business ownership.

Here are some ways each digital asset can support your online presence:

Custom Domain Name – A domain name that closely matches your company name serves as a memorable home base for all things related to your business. Products can be listed here, along with information on services offered, creating a standing advertisement for what your business has to offer.

Branded Email – A huge step above using generic email services, a branded email offers a mouthpiece to communicate with existing and potential customers, partners, and suppliers that proudly wears your business’s name. This fosters familiarity with everyone your company communicates with.

Social Media – Nearly half of all adults use social media to keep up with notable events and social happenings, according to Statista. Having active social media accounts for your business helps add your voice to the choir.

Business Listings – Listings on Google, Yelp, and other online platforms that feature a review function allow customers to speak to the value of your business in their own words and without influence. While this can be a double-edged sword, it’s crucial that your business is taking part in the public testimonial game.

Digital Marketing Channels – Digital marketing puts your business in front of people it’s likely relevant to on multiple platforms. For this reason, thoughtfully designed and well-established marketing channels like PPC ad campaigns, email marketing campaigns, and affiliate marketer relationships are very attractive to investors.

Northwest can help you build a foundation for your online presence with our Business Identity suite of products. Enjoy a 90 day trial of our business website and email hosting services, along with a free domain name for an entire year when you sign up for our registered agent or company formation service.

Ways an Online Presence Increases Value

Every piece of your online presence has something unique to offer. When considering the value of your business in preparation for a sale, Shark Tank presentation, or initial public offering (IPO), make sure to consider each of the ways your online presence impacts your valuation.

Market reach

Social media and digital marketing accounts are especially great at expanding your market reach. The more people know about your business, the more opportunity you’ll have to convey what you do and why you do it best.

In the eyes of investors, this means you’ve already laid the groundwork to scale your business. Established channels to reach new customers can add a ton of value when an investment opportunity is on the table.

Valuable data

The more you know, the more you grow. A business website and email aren’t just static elements of an online presence, they’re powerful mediums for information collection. The data that can be discerned from interactions on your website and email, like click-through rates and number of visits, is invaluable.

Compiling these figures from the lifetime of your business site and sharing them with potential investors can illustrate your business’s viability and impact, further upping your business’s value.

Revenue generation

This might be the most obvious way digital assets bring value to a business. An online shop on your website or through a platform like Etsy provides a convenient and reliable way for customers to hire you or purchase your products.

When potential buyers come knocking, a track record of consistent revenue coming in from these channels can help prove your business is viable and profitable.

Be Present With Your Online Presence

If you’re considering selling or trading all or a portion of your company, make sure you get the right price for your business. Consider all the ways your digital assets boost your company’s price tag when you make or accept offers. Your social media, online listings, and marketing channels all add a monetary value to your business. Make sure whatever price you and potential investors agree on includes the value of your company’s online presence, or you’ll be leaving money on the table.