This is clever. I have just completed my appraisal of a report explaining exactly how to value any business.
Now at first glance you may well think “So what - why do I need to know that?” Well that’s a good question but if you don’t measure it you cannot count it.
If you then come to a time when you want to sell up, it will be pretty much too late to make any changes that can make any difference to the price you eventually sell it for.
This is good - even great news!
Most business owners have very little idea about the real value of their business. Simply they are happy making things happen and keeping the boat afloat.
But think about it what are you in business for? You want to make money don’t you? No problem with that who doesn’t?
But the real money to be made - far more than from running a business - is by selling it. This is where the real money is.
I have a theory that has been working its way around my mind for some time now. It’s this: You may think one thing is true and that is your belief. Reality is often something completely different. This means that until and unless you have new knowledge to pitch against your truth or reality you won’t change your thoughts and thinking.
This can seriously hurt your wealth in business. Here’s how. I consulted with a shop owner who I knew was shortly selling up for retirement. No problem so far. He had successfully set up and run a small one man show for twenty odd years. Turnover and profits were steady but static. He made a modest living and was happy. But now he was ready to cash in and retire.