Can you believe that the vast majority of small business owners out there have no idea how much their precious companies are actually worth? It’s truer than you might think. According to a survey by M&T Bank, a whopping 98% of small businesses are in the dark about their own business’s value.
Why Should I care?
Here’s the kicker – not knowing the true value of your business can lead to some risky business. It can mess up your plans for selling the business, doling out stock options, figuring out who takes over when you’re ready to step back, handling taxes and estates, raising funds, and even deciding on insurance matters. That’s a whole bunch of troubles on the horizon, don’t you think?
Here’s the deal
Valuing your business is super important for your hard work to payoff in the right ways. Even if you’re swamped with day-to-day stuff or haven’t thought much about it, it’s time to bring in some outside help. There are experts with fancy titles like the American Institute of Certified Public Accountants and the National Association of Certified Valuators and Analysts who can guide you in figuring out your business’s real worth. Our local Silicon Valley Brokerage Office even does in-house Broker’s Opinion of Value reports which use the same methods as most SBA Lenders.
Now, I know you might be wondering about the cost – it can vary depending on your business’s size and complexity, and why you’re doing it in the first place. Certified valuations might range from $5,000 to $50,000. Sunbelt brokers can do the same work at a fraction of the cost. But let me tell you a little industry secret – it’s totally worth it for what you can discover and correct ahead of time. And here’s another tip – keep checking on your business’s value regularly, like a yearly check-up at the doctor’s. This way, you can spot weaknesses and make improvements to make your business even better.
Hesitation increases in relation to risk in equal proportion to age. – Ernest Hemingway
So, savvy business owners, if you get a handle on your business’s true value, you’ll be ready to make smart moves and plan for a fantastic future.
Reach out to Sunbelt Business Advisors, get connected with the right valuation professionals for your desired purpose, and find out what your business is really worth and how you might be able to increase profits and value.