What is the true value of your business?

Will your company provide for your future?

A lot of business owners plan for their business to provide their pension.  But to do that, you have to know what your business valuation, and what it is worth to someone else.   Unfortunately, many business owners have no real idea of the value of their business; they may know turnover and profit, but these are only some of the factors that go into the melting pot that will influence the value to a potential buyer.  If you want your business to provide for you in old age – especially  if you aim to retire early on its proceeds – you need to have a very good understanding of what it is worth, and the steps you need to take to optimise the business valuation, and its ability to provide pension contributions for you. 

Fortunately, I now have an invaluable tool to enable me to help business owners develop strategies to create an organisational structure to make their business as attractive as possible to prospective buyers.  These strategies make a business stronger and more profitable at any stage of the business lifetime, irrespective of whether you’re looking to sell or intend to stay in the business for the foreseeable future.  They are based on good business sense; great business strategies to prepare for sale are great strategies for a strong and profitable business.

The tool is called Value Builder.  Through a simple, online questionnaire that takes about 20 minutes to complete, it analyses the current performance of your business against eight key criteria:

• Financial performance
• Growth potential
• The Switzerland Structure (too much reliance on key team members, suppliers or customers)
• The business valuation see-saw
• Recurring revenue
• The monopoly control
• Customer satisfaction
• Hub and spoke

Some of these may be obvious, some of them may not make much sense at a first glance, but together they provide critical insights into your business’s saleability.

Understanding where to concentrate your resources

Like any one-size fits-all business tool, there are limitations.  Value Builder weights the answers according to general business principles to come up with an aggregate score out of 100 for your business: the higher you score, the more a potential buyer is likely to be willing to pay for your business in relation to current turnover and profit.  Analysis of tens of thousands of businesses has shown that companies with a score of 80 or more receive buy-out offers that are 71% higher than average companies receive.

However, some of the highest scoring answers may not be the best option for your business.  For example, the highest scoring answer to the question ‘How easy would it be to replicate your business to a new geographic area?’ is ‘Very easy’; but if you offer bespoke consultancy and would have difficulty recruiting and managing consultants in another area, that answer may never be relevant to your business.

For this reason, it’s important to work through your Value Builder report with an expert who understands your sector and your business and who can give objective insights as to which areas of operations you need to be focusing on to optimise your businesses valuation.  It is extremely unlikely that any business could ever aim for the top score to each answer – what works in one sector is sometimes simply not applicable in another – so, rather than trying to do it all, you need to identify where you can add most value.

Value Builder exclusive offer

Value Builder is an extraordinarily powerful tool to give business owners the insights they need to meet their business and personal goals, so I am personally committed to making it available to entrepreneurs in Kent, Sussex and Surrey, in the area indicated in the map.

Value Builder normally costs business owners £500.  However, I am delighted to offer it to selected businesses free of charge – and I am also pleased to offer the follow up 90-minute 121 consultation to go through your results at my expense.

Why?  Well, I want businesses to have the very best chance to grow and develop, delivering the results business owners and their families deserve.

Secondly, I want to see businesses thrive and recruit additional team members to further grow the business and help to boost the local economy.

The full list of towns where I can provide this service is below, but if you don’t see your location, give me a call or drop me an email I will let you know if I can help you.  If I can’t, I’ll put you in touch with one of my colleagues who helps businesses in your area.

To apply for your FREE Value Builder report and business strategy review

Call 01732 453 464

Or email julianweekes@actioncoach.com

I help business owners in the following towns:

Don’t see your location in the list? Drop me a line and I’ll let you know if I can help you – or put you in touch with one who my colleagues who works with business owners in your area.

My clients benefit from supporting material and coaching in the following business areas:

Looking for support in one of these key business areas?

Call 01732 453 464

Or email julianweekes@actioncoach.com