98% of Business owners don’t know the value of their business – do you?
When we speak to business owners, we learn more often than not that the most common metrics used to measure success are the top and bottom lines of their income statements. If both are looking good, then everything is good.
However, when we ask them if they know the value of their business, the vast majority are not able to provide an answer.
The value of your business is a powerful indicator of success, and tells a more complete story about your business’ history, growth, health, and profitability than just looking at the income statements. A business valuation holds tremendous value for
- owners looking to sell their business
- owners planning an exit strategy
- investors interested in investing in such a business
But it holds value outside of those scenarios too.
By understanding where your business has been, where your business is, and where your business is potentially going, you will be much more prepared during negotiations, external investments, restructurings, among other major, business changing events.
By knowing what your business is worth, you are preparing for the future.