What role does customer base size play in determining SME value?
Understanding the impact of customer base size is crucial for small and medium-sized enterprises (SMEs) when it comes to assessing their business value. For an SME, the number of consistent customers can be a significant indicator of the company's market position, stability, and future revenue potential. A broad customer base often suggests that the business has a well-received product or service and possesses a certain level of resilience against market fluctuations. Conversely, a smaller customer base might indicate a niche market or a newer, less established operation. However, size isn't everything; the loyalty and purchasing power of the customer base are also vital components in valuing an SME.
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Sarisha NaidooFormer lawyer I NED I Founder I Entrepreneur I Serial networker I Co-author I IoD Ambassador I Consultant I Board…
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Ahmed Hassanien, CMA?, FMVA?, DipIFRDriving Organizational Success Through Strategic Finance Leadership |Finance Business Partner | Head Of…
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Marco RuasDiretor Comercial na Artecimel