Here is a message that might challenge your previous beliefs.

No matter what size your business it is really important to know its value at any given time.

It gives you an accurate industry benchmark, and will make it far easier to obtain funding from lenders and financial organisations that will give you the capital you need for growth.

The benefits of knowing your business's value

Making sure you have an up to date view of your business' value will provide you with the information to help with how you plan for the future and when you need to make investments, fund raising and M&A activity.

The valuation will also show you where your business needs some attention before you can achieve your desired growth, this is what we refer to as "stable foundations."

According to a IBISWorld report "Business Valuation Firms " 98% of business owners don't know the value of their company! Are you in that overwhelming majority?

That is an incredible statistic that goes to show that many business owners are operating with a an approach to growth that does not serve them.

Knowledge is power and knowing how a regular valuation strengthens your business gives you an incredible advantage. You have the ability to remain ahead of your competitors and potential purchasers, keeping you well prepared for any situation or offer that comes your way.

What affects the value of your business?

Here are some key factors that will affect the value of your business. Have a think about how your business ranks against each of these points.

Finance

• Historical, current and projected profits and cashflow.

• How well you control costs.

• Need for capital expenditure in the near future.

External factors

• State of the economy in general including interest rate levels and the level of demand in your market in particular.

• How similar businesses are being valued.

• How many potential purchasers are interested in the business.

• How many similar businesses in your sector are on the market.

Intangibles

• Goodwill and intellectual property such as patents.

• Strength of customer relationships - and how profitable they are.

• Your business' growth potential.

• Economies of scale a new owner could leverage.

Assets and liabilities

• Value of assets such as property, equipment, debtors and stock-in-hand.

• How full your order book is.

• Level of debt and other existing liabilities.

People

• The management's record of success.

• How dependent the business is on your own skills - and the likely extent of your future involvement.

• Experience and commitment of key staff.

Get an indicative value today

...and an idea of what your business may be worth in 3-5 years' time with a growth plan.

Click on the "Contact Me" link in the footer and leave your details for a free, initial consultation.