What is your business worth?

Intentionally Impressive Valuation

You began with a desire to be your own boss, control your own destiny, work the hours you wanted, earn what you’re worth – live your dream.  All of your efforts and resources were committed to starting the business, without a glimmer of thought to the ending.  Your end game, exit strategy, retirement plan, and life after work were far too far away to be of any concern because… just getting the doors open for business and surviving those first years consumed all of your energy!

Enlightened owners determine the “end” before they begin.  Their energies transcend survival, becoming a deliberate development plan of building an enterprise that will command a premium valuation when they are ready to sell it.  And, how about this: Their buyer already works there!  Monetizing the enterprise-value you’ve spent years building, decades likely, is not magical or miraculous; it is by design when you create a company with laser-like attention on your master plan.
It’s never too late to embrace this concept.  There’s always a place to start.

Remove yourself from the office for a moment, clear your mind.  Imagine a business with (1) clear, concise standard operating procedures that are usable (not novellas).  Add (2) a personnel development plan that supports your employee’s visions for their career and family life.  Insert into the mix (3) financial statements that are accurate, display year over year results (trending up, we hope).  And now, vitally, with absolute confidence, (4) know that your business is self-sustaining without your presence (it’s OK to see yourself pursuing your favorite pastimes with your favorite people, carefree).  When your enterprise possesses these four attributes, your business is always ready for expansion or sale, and your buyer is one of those employees who can manage the business without you being there.  Value is obvious.  Your buyer already works for you.  The possibilities are limitless.  You choose your future.

The equation to determine the price a buyer will pay for your enterprise is: Assets at fair market value, plus a multiple of cash flow justified by its sustainability.  When you tenaciously work on your business with your end game in mind, your vision can be attained.  Without that focus, disappointment frequently results.   The sad truth is that 9 of 10 small businesses simply fade away when the owner leaves.  At Perpetual Business, we want to change that statistic.

What is your business worth?  Is it a Perpetual Business?  If you want more information, visit PerpetualBusiness.co and download the Perpetual Business Basics. It is a road map to an even better future for your business.