… and why should you care?
You invested, probably heavily, in your American Dream; and you have a lot riding on it.
Before you can realize your rewards fully, you’ll have to quantify what you’ve accomplished. Only then will you be able to explore your options, choose your path, and make the moves that matter.
Business owners make decisions every day – indeed, many have their entire net worth invested in the decisions they make – yet, few know, in advance, just how those decisions will impact business value.
According to the Small Business Administration, insufficient knowledge about business value is one of the top two challenges facing small business owners and leaders. That’s because companies that DO understand their worth are better positioned to pursue growth initiatives, attract and reward talent, and ensure proper credit and risk management.
Whether you are a sole owner, in a partnership, or part of a corporate executive team with equity in the enterprise, knowing business value can help you when you:
- Seek debt or equity financing
- Pursue new business & expansion initiatives
- Apply for a business loan
- Make a business acquisition
- Value a buy-sell agreement
- Prove you’re a reliable supplier
- Assess how you should value your business for estate planning purposes
- Determine how much insurance you need to protect your family & assets
- Gauge whether another company is a good strategic partner
- Need to know how business decisions actually impact business value
- Want to quantify business value for the sale of the business or your equity interest
IFG is able to help, as part of our financial planning process, through the use of an innovative, patented online business valuator system that provides IFG clients with access to real-time business valuation knowledge. This resource represents the “on-ramp” to almost everything you need to do to accomplish a variety of objectives. It helps business owners answer the most important question they face before engaging in any financial decision-making conversation: What’s my business worth?
It’s about insight: Knowing where you stand and where you may be headed.
Jim Lorenzen, CFP®