Most business owners we work with do not know the real value of their business. They generally think they have a ball-park number but we have found in many cases those numbers to be really low or really high.
I know that when I have money invested in the stock market, 401K, IRA or investment accounts I love to get that monthly or annual statement showing me exactly how much my investment went up or went down. There is no difference for your business. Knowing the value of your business can help you plan and take advantage of quality business decisions. The following are just a few critical issues determined by the value of your business.
- Knowing the value allows you to plan your banking and borrowing capacity and relationships.
- Knowing the value helps you understand your market share and make strategic decisions about competitors.
- Knowing the value helps you plan when to sell at the most optimum time.
- Knowing the value gives you a groundwork for estate planning and retirement planning.
Kelly Shaw
Business Broker
Bristol Group