There are several key points to remember when one considers what makes a business valuable. It’s of course important to have a product or service for which there is a market, a management team that thinks strategically enough to make the business a success, and employees who are committed to doing whatever is necessary to assure the well-being of the business.
There are, however, several other factor that may enhance the value of a business- some of which are intuitive, some maybe not so much. As a business owner, especially a strategically thinking one, it behooves you to be aware of all of the issues that may impact the value of your business.
This might not be an issue that is at the forefront of your mind as you juggle receipts, return client phone calls, and try to remember to update your QuickBooks entries. But eventually, you will need to think about this- if for no other reason, than to include it in your exit strategy.
(What was that? You have no exit strategy for your business? That’s a whole different issue, and I’d be glad to discuss its importance with you.)
In any event, I was recently honoured to serve as a guest of Alicia Marie Fruin, owner of PeopleBiz Inc, a coaching and training organization. As part of her Expert Series presentations, I was able to discuss in some detail some of the the issues to consider when a business is being valued, how a business valuation is performed, and most importantly, what you as a business owner can do to positively impact the value of your business.
Feel free to access the podcast by visiting Alicia’s website at the link below; if you have any questions about the conversation/presentation, I’d be most happy to entertain them.
(And then get to thinking about your exit strategy for your business- you don’t want to work until you’re 80, do you?)