What are your biggest assets?
For many of us it is our house (or houses if you have gone down the property investment route), savings and investments. After that we may struggle. Employees would probably add their pensions in here but what would Business Owners add? Would you put your business in this category? I hope so and if not now, when would it meet the criteria? What are the criteria?
An asset is something the delivers value. That value can be an income that it generates over time or it can be the price you get for it when you sell it. A really good asset generates income without you having to do anything – what we call a passive income.
Are you structuring and growing your business to generate that passive income and that value on sale? If not, question whether you are growing yourself a job. Not alone does that tie you to the business now but it can also impact the value of your business on sale.
Many things influence the value of your business such as historic and projected profits, cash flow, the value of assets such as property, equipment and stock. However there are other less well-known factors that influence it and its reliance on you and other key employees is a significant one.
Knowing what these factors are enables you to influence them and thus maximise the value of your business on sale. If selling your business in on your horizon, please contact me for a free report which will benchmark your business against market-tested valuation factors. It will also outline areas that you can work on to increase the value of your business. Please send an email to firstname.lastname@example.org if you would like a free, no-obligation business valuation report. Why not? Have better information to get a better price…