5 Tips on How to Make the Most of this Trend
We’re already seeing the biggest transfer of wealth in history with 76% of North American business owners planning to exit in the next 10 years!! It’s crept up on us, but if you haven’t noticed, the first wave of baby boomers are going to be 70 this year. Over the next few years, baby boomers are going to retire and pass their businesses on or sell them…. so what does it mean for you and your business?
1. Determine what the business is worth today. If you own a business or have family or a friend who does, a Valuation of the Business as measured by what a potential buyer is prepared to pay for it, is the only measure that really counts, in the same way that you don’t really know the market value of your home until you know what buyers are prepared to pay. You can get a very good idea of the Value of the Business by taking the Value Builder Survey. Take the FREE survey and get your results right here http://goo.gl/LCiKLD
2. Set goals for increasing Value. By following the statistically proven method of the Value Builder SystemTM it’s possible to increase the value of an average performing company by up to 71% …. Once you know what the company’s worth it’s important to set goals on what Market Value will be achieved over time. For example, if the business is valued at $1 million now, the goal could be to increase wp themes the potential selling price to $1.6 million over the next three years.
3. Identify the important Value Drivers. There are 8 Key Drivers that determine the value of the business. You will need to identify which of the key drivers require significant improvement and present opportunities to increase value. Some of the most obvious and important are:
♦ Growth – of the business and industry
♦ Financial Performance and Profitability
♦ Recurring revenue (such as contracts or subscriptions)
♦ Stable cash flow
♦ Not being dependent on 1 or a few large customers.
4. Get expert advice and assistance. Hire a Business Coach or Certified Value Builder Advisor to help you develop and implement detailed plans to improve performance of the business drivers that will have the most impact on performance and therefore valuation.
5. Be patient and avoid the short-term thinking trap. While there is some urgency to deal with this wave of buying and selling that will overwhelm many unprepared owners, it’s important not to panic and to keep a medium and longer term perspective. Even if you don’t plan to sell your business within the next few years, keep in mind that it typically takes 2 – 3 years to prepare a business for sale. By taking action now you will be well positioned to get the best possible price when you’re ready to sell! If your intention is not to sell but to pass it on to family or employees, by taking action now you’ll increase the performance, profitability and value of the business!