Ever wondered how much your business is worth?
If you’re a business owner, then at some point you’ve wondered – how much is my business actually worth? We don’t mean when you’re dealing with a difficult client and you wonder if it’s all worth it – we mean when you look forward to the future and muse about all you’ve created. Of course, you could go through your stock and contracts, take inventory of company assets, perhaps even get advice on the value of your brand from a sponsorship perspective, but will that give you an accurate view? You may already be thinking – “I’m running my own business because it’s what I love, I don’t need you to tell me how much my business is worth as I don’t have any plans to sell”. To that we say, well how can you plan for the future without knowing how many chips you’re playing with? For your company to be truly valuable, there is more you need to consider than the bottom line.
How does this information play into your wider plan? You’ve started your own business and have no intention of selling, but what about partnership deals? What about your competitors and market share? Possibly even an expansion loan or premises mortgage against your business? All of these factors and how you interact with them can be linked back to how much your business is worth in pounds and pennies. Perhaps you intend to pass the business along to your family, or maybe you plan to just shut up shop and close the doors once you’ve had your fun – either way, aren’t you curious to see the value in what you have created and the scope you have to go on creating?
The value of your business and your exit strategy are fundamental facets of your business’s life cycle that you should be clear on, but unfortunately most of us aren’t. Us business owners don’t have the time to work all this out – we are all so busy riding the roller-coaster that we forget to think about what shape it’s in or how we plan to get off…
That’s why at ActionCOACH, we have developed the ‘Value Builder System’ – a system with a statistically proven method for measuring and increasing the value of your business. Starting with a specialised questionnaire, we are then able to generate a custom report detailing your business value score. This is based on the 8 factors that drive the value of your company, along with some suggestions for improving your score.
As well as providing a picture of your business’s value, this system is also designed to identify potential challenges or threats to your way of working. Often there are areas of a business being silently dragged down by single points of failure that owner’s aren’t even aware of. Sadly it’s not just the obvious fires that need fighting! For example, is your business too dependent on one key employee? If they were to leave or no longer be able to work, how would you keep operations running smoothly? Are your customers likely to keep buying from you in the long term? How long could you take a holiday before your business started to suffer?
Once you have your Value Builder Score we work with you and your business on a 1 on 1 consultation basis, to discuss the steps needed to increase your company’s value. It’s entirely confidential, and designed to help businesses of all kinds and at all stages.
We discovered that those businesses with a Value Builder Score of over 80 received purchase offers over 71% higher than the average business.
Working alongside ActionCOACH and Business Growth Specialist, Martin Baillie, you not only get a clearer view of your business’s value, but actually take practical steps to improve the value of your business, whether that is to take it to a sale, or just to know that you could.
If you are ready to find out the value of your business, get in touch via our website today. Who knows – you could be sitting on a gold mine!