What is your business worth right now?
“I really thought it would be worth so much more”. This is what many business owners say when they finally make the decision to sell their business.
What could your business be worth with a few ‘renovations’, to a buyer or even yourself?
You have probably heard of stories where a homeowner decided to sell their home. However, to be able to maximise the value of their home they decided to renovate first. Then once they finished the renovations, they fell in love with their home again and decided not to sell and enjoy it themselves! Should they decide to sell at any time in the future they will be ready to move quickly and sell for a great price.
You should look at your business exactly the same way…
Build to Sell through The Value Builder™ System
You could call it the ‘Ultimate Poker Hand’… …
It means that no matter what business coaching or business mentoring program you choose, we can set aside dedicated time to systematically build the value of your business. You can choose to sell if you get a fantastic offer or, after doing your business Value Builder™ ‘renovations’ you might decide you like the business so much that you prefer to hold on to it and enjoy it! Much like renovating that house, your business will become a lot more enjoyable to own and you can relax knowing your business is far more attractive (and therefore valuable) to a buyer in the future.
How does it all work?
Businesses are usually worth a set multiple of the net profit. The Value Builder™ is a proven system to increase that multiple so that your business becomes worth substantially worth more money simply because it is a more attractive business to a buyer.
Utilising the Value Builder™ system you and i will focus on 8 key levers that will increase the business’ value:
Financial Performance
Your history of producing revenue and profit combined with the professionalism of your record keeping.
Growth Potential
Your likelihood to grow your business in the future and at what rate.
Switzerland Structure
How dependent your business is on any one employee, customer or supplier.
Valuation Teeter-Totter
Whether your business is a cash suck or a cash spigot.
Recurring Revenue
The proportion and quality of automatic, annuity-based revenue you collect each month.
Monopoly Control
How well differentiated your business is from competitors in your industry.
Customer Satisfaction
The likelihood that your customers will re-purchase and also refer you.
Hub & Spoke
How your business would perform if you were unexpectedly unable to work for a period of three months.
Sound Exciting? It is!
Focusing on doing something that can only benefit you in every way will be exciting, motivating and so worthwhile. To understand how you currently score in the above mentioned 8 areas of your business we invite you to complete the Value Builder™ Score. You will even get an indicative value of your business!
The Value Builder ScoreTM
If you’re like a lot of business owners, you assume your industry and its size will determine the value of your company. While size matters, eight other factors impact the value of your business more than your industry. In fact, after analysing more than 55,000 businesses, The Value Builder System™ has discovered getting these eight factors right can lead to buy offers that are more than twice the industry average. Likewise, we have seen examples of businesses getting less than half the industry average multiple because of a weakness in one or more of these eight areas. To see how your business scores, you can complete the Value Builder questionnaire below and get a report on how you’re doing in each area.
PREScore QuestionnaireTM
As a business owner, you’re ready for almost anything. But recent data shows that even the smartest and successful entrepreneurs struggle with one common problem: the regret of how they handled leaving their business. 12 simple questions can help prepare owners for an Exit With No Regrets.
Take action today–get in touch!
Get an obligation-free business checkup.
Selling your business
Some of the questions that I hear from small business owners are:
- What is my business worth?
- I want to sell my business, where do I start?
- How do I sell my business?
- How do I value my business?
- Is valuing my business difficult because it is unique?
- How long will it take to sell my company?
- What does business exit planning involve?
Most business owners lack a business exit strategy plan. Typically, the idea to sell is an impulsive one, rarely planned. A business owner might feel burnt out (not a great indication of a valuable business!), or they may need to deal with sickness relating to themselves or a loved one.
Valuing a business doesn’t have to be complicated. A great place to start is to benchmark the value of your business using the free Value Builder score.
Once completed, the Value Builder report will give you an approximate value of your business based on the data of thousands of businesses in industries like yours. More importantly, you will see your score in eight key areas that drive the value of your business. You’ll get a score out of 100 for each value driver, allowing you to benchmark where your business currently stands, and uncover potential improvements. Get your score here.
We can then review the areas for opportunity and create an action plan to improve your business. Over 60,000 business owners have received their score to date. You can complete the 13 minute questionnaire here.
The Value Builder system is a statistically proven methodology that boosts the value of a company by up to 71%. Our tools and exercises are designed to help business owners grow a more enjoyable business to run or sell.
Access to the system includes 12 unique modules which are designed to help you grow the value of your business.
Abraham Lincoln once famously said, “Give me six hours to chop down a tree, and I will spend the first four sharpening the axe.” Doing the work now is a steady value builder of your business. It ensures you have the best possible chance to sell your small business at a value you will be very happy with!
Complete the Value Builder score here
Take action today–get in touch!
Get an obligation-free business checkup.