05 Oct 2018

9 Reasons to Know the Worth of Your Business

Do you know what your business is worth?

If you are like most entrepreneurs, your business is your most valuable asset. You work hard you to build an asset in the hope of selling it to live the life of your dreams- or to just retire. Do you know the worth of your most important and valuable asset?

As a business coach, I am amazed that out of 30 million small businesses in the United States, 98% of business owners don’t know what their business is worth! Even worse is working your entire life to retire only to be devastated by learning the value of your business is a fraction of what you hoped! I frequently ask my clients: “If you don’t measure it, can you improve it?” The answer is: “Yes, but only by accident.” Which means it can deteriorate by accident also.

So how often should I get a valuation of my business? The answer is: “What is your business valuation goal, and how often do you want to know your progress toward that goal?”

The good news is that technology is now driving down the cost to less than 10 – 20% of historical costs for business valuations. This technology is called BizEquity.

Through the BizEquity platform, I help business owners and CEOs discover what their business is worth, at a fraction of historical costs. As a growth expert and business coach, I help them understand what is needed to accelerate the value of their business to achieve their goals.

Is valuing your business only important if you are about to retire? Absolutely not. In fact, that is late in the game. Here are 9 reasons why a business valuation will help you achieve your lifestyle goals:

  1. To achieve your financial goals when you plan to sell your business
  2. To set a base line value for your business and develop a strategy to improve its worth
  3. To Plan for, and tracking towards, retirement
  4. To prepare for taxable events such as gifting or grants
  5. To construct Buy/Sell Agreements with business partners
  6. To ensure your business and your family are properly protected
  7. When considering funding opportunities to accelerate growth
  8. To plan for the future of your business with a qualified succession plan
  9. When you plan to buy a business

Whether you are selling, planning for retirement, or growing your business, the current value of your business is a critical metric you should be tracking.

Do you know what your business is worth?

If this is an area I can help you gain clarity in, contact me to learn more or to discuss a valuation of your business.

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