Every business owner should bear in mind that at some stage he or she will have to cease involvement with their business.
Possible reasons for this are varied. Some are forced upon the business owner, others are the result of a decision to leave. Reasons include:
- A wish to start or join another business
- A feeling that you are no longer the best person to manage the business
- A loss of enthusiasm for the business
- A wish to retire
- Ill health
In all cases (even insolvency) it is in the interest of the owner and the owner’s family to optimise the outcome. In practical terms in most cases that means to get as much money as possible for the business.
Every business owner should from time to time give some consideration to what might happen if they decided or were obliged to exit for whatever reason. In the case of a planned exit they should also remember that they should ideally start active work on the exit three years ahead of its hoped for completion.
Revenue, profit and cash will always be three of the most important factors in assessing how much a business is worth. However there are a number of less obvious factors that can also make a significant difference.
Fortunately there is an on-line service that enables business owners to assess all the major factors in valuing their business. It takes the form of a questionnaire which takes about 15 minutes to complete. There is no cost involved in answering the questionnaire.
The result is an assessment of your business in eight different areas, with each given a score out of 100. An Overall Score is also given. An overview of the results is available on screen immediately. The detailed report is available from a local supplier, of which I am one. I do not charge for forwarding that report to the business owner.
To complete the free questionnaire click this link.
The report will be with you in one working day. You can then use the information it gives to make adjustments to your business that will make it more attractive to any potential purchaser. These changes are also likely to make the business better balanced, and so more successful and profitable.
Posted by Richard Wickes