As a business owner, your business valuation is something you take seriously. After all, you’ve poured years of continued effort, time, passion, and resources into building your business to what it is today. You’re proud of it. You have a deeper understanding of the journey since its inception, the challenges you’ve met along the way, and how you’ve conquered them. If I were to ask you what you think the value of your business is, you would naturally give it a high figure.
While this is understandable, it can be subjective in the eyes of the open business market. The emotional attachment you have to your business alters your judgment. Potential buyers will value your business based on logical processes and business value fundamentals.
For your business to have a high market value, you need to grow its value. Here’s a strategy to help with this:
1. Get a Certified Business Evaluator to do your business valuation for you. They will be able to tell you the value of your business on the open market.
2. Analyze the list of value drivers and constraints keeping your business from reaching its maximum value.
3. Prioritize, and start to eliminate the constraints. This will increase your business’ value.
4. Improve the value drivers, and leverage their potential to grow your business.
This week, I challenge you to take these steps towards increasing the value of your business. Should you need any help getting started with this, feel free to contact me.
Remember, your business is a saleable asset that will generate real wealth for you!