Have you ever wondered what your business is worth ? 

OR

Have you ever asked yourself how you can increase the value of your business?

Well, there is a key thing to remember when it comes to the value of your business.  Your own valuation is going to be very different to the Buyers valuation.  Why?

Well you see, your valuation of the business might be slightly higher.   Your valuation will be based on your blood, sweat and tears given over the years.  This is personal and is your emotional attachment to the business that you have grown.

As a result of your emotional attachment, your valuation is going to be slightly higher than somebody else’s.  Newsflash.. Your emotional input has no value !   If you were to ask me today, how much would I offer for your business, what do you think my answer would be?   Well, I’ll tell you…..

 “AS LITTLE AS POSSIBLE”

Now,  I bet that sounds really harsh.  The truth of the matter is, that is where your Buyer is coming from.  Like you, the Buyer is looking for the best deal and will poke holes in how your business is currently being run to get the best price they can possibly achieve.

So, what is going to help you make sure you get what you need or want from your business sale, and ensure that the Buyer is attracted enough to your business to part with their investment?

Well, to get you started let’s focus on getting these three simple things done :

Get a Professional Valuation

Go and get a professional valuation of your business, which takes into account industry benchmarks and provides an independent evaluation based upon your business’ recent and current financial performance.   You could get that valuation from your accountant, or you could get a valuation from a qualified business sale agent.

Now let me tell you what is going to come out of this Valuation Report.  In addition to providing you with a ball park figure to begin negotiations for a sale the report will highlight two key things:

Value DRIVERS

– The valuation report is going to tell you what the key drivers to value are in your business.
– What it is that you are delivering to your customers that uniquely increases the value of your business?
– What key assets are making your business an attractive purchase option for a buyer. This could include your customer database, location, intellectual property, team, expertise or business structure.

Value LIMITERS

The third thing that this report is going to tell you is what are the key Limiters to the value of your business.

What is it that’s stopping your business from being valued at the level that you want it to be valued?  what is missing in your business, in your offering and in your business structure that a Buyer will have to invest further to ensure that they get a return on their investment.

Understanding what are the Key Drivers and Key Limiters to value will put you in an objective position to begin making the necessary changes to secure the highest possible sale price.

Brian J Sharkey

“Whether you are looking to sell your business, transition ownership, conduct estate planning, or calculate gift equity, the first step is to determine the value of your business.”  quote from  Brian J. Sharkey,

TIP… If your business relies solely on you then the only increase in value will be to your ego.  You can’t sell your business based on an ego !

So, this is what you need to do to ensure you get real value from all the hard work you have invested in your business over the years.  Whether you want to sell now or at some point in the future.

So, what’s next?

  • Get a valuation somebody who is qualified to give you an independent valuation of your business and who knows about your industry. Speak to your accountant or a reputable business sale agent.
  • Review and strengthen your Value Drivers
  • Understand and eliminate or reduce your Value Limiters

If you are struggling with your valuation report, want to know more about how to build up those Value Drivers in your business, and eliminate those ones that are Limiting your business valuation, simply get in touch by speaking with Jeff Williams, Business Coach and BOOK your complimentary call HERE

The 12 Essential Characteristics Of an Entrepreneur  Is a must-read article about the traits of a true entrepreneur and will give yourself an inspiring boost of confidence, foresight, and determination to achieve this winning attitude.  To read this article simply click DOWNLOAD  here.

If you would like to be put in contact with a reputable Business Sale Agent simply click on SUBMIT

or enter your details HERE