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Finally, A simple way to value any business?

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The fastest way to get a business valuation based on an average without giving away any confidential & financial information to business brokers who you don’t know!

This short video explains it – or read the post below!

 

The problem

If you have ever thought of valuing your business and searched for “how to value a business” on Google, you will no doubt be well aware of the huge amount of choice and often conflicting ways that some business brokers supposedly use to value your business.

And to make things worse, most business broker websites will happily provide you with a quote, which seems great doesn’t it? – well actually, NO because:

The issue

In return for this so-called valuation “you will have to provide very sensitive and confidential financial information to people you don’t even know.

When you think about it it’s a bit like going on a first date and the first question you ask is what shall we call our first child. Most people would run a mile because it’s too much information to soon.

This isn’t the way to gain trust is it?

Giving away highly sensitive information to complete strangers on a website you have no prior knowledge is going too far, too soon.

About me

You may have already guessed by now that I am NOT a business broker but I am a business owner like you and an entrepreneur like you and I have been through this process many times. I have personally started, built and sold businesses in Australia and in the UK.

It can be quite a daunting process and experience has taught me that if your business hasn’t been prepared for sale, then it won’t achieve its true potential value.

So what if I told you that by simply asking a series of uncomplicated and none financial questions using our free valuation tool, you can still accurately value your business based on an  “average”

 

How is this possible? I hear you ask

Because valuing your business (or any business) isn’t rocket science, despite what you may have read or may have been told.

 

The revelation

Typically, on average your business will be worth between three and seven times you’re operating profit! – revelation over

Now before you start emailing me with “it can’t be that easy” and there are so many different scenarios with every business.

 

You are absolutely correct! There are multiple different scenarios across multiple sectors but the formula doesn’t change, it stays the same, in fact like any average you can also value the business at less than three but more than seven.

It isn’t unusual in a bidding war with 2 potential purchasers that your business could reach 10 times the operating profit. BUT typically, based on an average, it will be on that 3-7 scale.

Something essential to note:

Regardless of where your business sits on the 3 to 7 scale, the most important thing you must consider is this:

 

What happens when and if your valuation is much less than you originally thought and more importantly what will you need to do to increase that figure, that my friend is the real crux of this process.

All your hard work and effort, only to be told your business is only worth three times you’re operating profit and all the time you have a much bigger price in your head.

(by the way, most business owners do that and strangely, it isn’t usually based on anything more than a guess)

Which is why we created the valuation survey tool.

But don’t worry, because regardless of where your business sits on the scale, there are many proven strategies that can help you increase your business and get to the seven times profit rather than the three. (Or less) if you plan, prepare and implement but more on that later….

Its worth noting, a business I was involved with was valued at 5 times the operating profit but this was a partnership. And once we crunched the figures, we realised we couldn’t afford to sell it at that price

so we decided to look at where the issues were in our business and then plan, prepare and implement new strategies that helped us achieve the 7+ figure we needed over a 12 month period.

So are you ready to find out where your business currently sits on that average valuation scale?

 

Take the survey here ( ps read the info below first)