Many business owners are faced with the constant reality of “my business is not generating enough profit” for it to be healthy, sustainable, and positioned to grow. It is really the fundamental challenge all business face at some point in their life cycle.
Timing is critical. You need to start Staging your business today, even if you don’t imagine yourself selling for many years from now. And if you don’t want to heed our warning, realize that the best candidate to purchase your business may come knocking at your door before it’s ready to sell
John Warrillow emphasizes the importance of knowing the specific number that you want to make when you sell your business. He even stresses that you write the number down and put it into a sealed envelope. But why is doing this so important?
Did you know that a track record of three years of revenue growth can be very impactful on your business’ valuation? Do you know what your company’s last three years of revenue growth, AKA “revenue story” is?
You began your business with nothing more than an idea. You created it, built it from the ground up, sacrificed to ensure its growth, and you steered it through all its ups and downs. After all this time, you’ve started thinking about your next chapter.
Did you know that less than 20% of businesses that are for sale actually close? You might be surprised by that statistic, because that means over 80% of businesses for sale never actually successfully sell. What is it that causes this?
It’s important when valuing a business to consider the non-financial aspects of the organization. These are called the “non-financial components of transferable value”. What exactly is meant by this mouthful of a phrase?
While business valuations aren’t a complicated concept, understanding the methodologies can be difficult to understand. Keep reading to gain an understanding of 3 common business valuation techniques, what they mean, and when it may be appropriate to use in valuing your business.
Your business is likely the most valuable asset in your financial portfolio. In fact, studies show that 80% of individual wealth come from the sale of businesses. When you think of it like that, it’s obvious that you would want to know the market value of your business.
One of the most informative moments as a business owner is when you have your business valued for the first time. Unfortunately, it is rare for a business owner to be happy with the first valuation results.
In the last 3 years, we transformed our company into a “growth” organization. Our company grew from 10 employees to 30 employees with virtually no turnover; core values were clarified and recognized by employees, creating a high-performance culture.