When you have spent your life building this business, many times from the ground up, it is invaluable to you. It’s just so darn hard to let go.
You are certain that that business has enough value that you’re going to be able to retire and live well through the remainder of your years. Why? Because of all that this business has provided you. Your business can have tremendous value—or not.
What is the real value of your business? How can you measure it? Are you qualified to put a number on it?
How do you make sure the business is as valued on the outside by a qualified buyer as much as you value it on the inside as the hard-working owner?
A realistic valuation of your business is a huge deal. As I said in chapter 1, the blood, sweat, and tears you put into your business has to count for something. Right?
A business must have value, real enterprise value, a value that others can appreciate. A value big enough for someone to write you a big, fat check.
This process requires a number of steps:
Do you know what potential buyers need to buy your business?
Is your business going to be as profitable with or without you running it?
How many customers do you have? If it’s too few, then it means your business is risky.
What is your customer’s ability to pay?
Are you depending on one or two suppliers?
What is your relationship with your vendors? Are you
paying them on time?
Is your business growing? Or is your business stagnant?
Is your revenue going up OR down?
Do you have your financials in order? That requires alot of work, and a good team around you, something we will get into later in the book.
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