You want to determine business value because your company is worth something (or it should be) and not just to you.
Wondering what is the value of my business? Maybe you want to determine business value just to stroke your own ego. Or maybe you are looking to get some venture capitalist funding. Maybe you are meeting with the bank. Hey, maybe you just want to sell the business so you want to know how to calculate a business value for sale. No matter what the reasoning, many business owners and operators want to determine their business value and the productivity measure of their workforce.
Being able to accurately understand what your business value is can help you get more funding, a more robust loan, and even a higher sale price. Knowing your worth is smart business. But the fact is, not everyone understands how to determine worth. It’s actually a bit complicated in some ways. Continue reading to learn how to calculate the value of a business for sale.
Check out this business valuation formula shark tank
How to Determine Your Business Value
Using your assets: In this approach, the sum of your parts determines your business value. Its simple math, really, your business broken down into parts and added together can determine how much the whole is worth. Accountants for the company can typically asses value to smaller parts easier than an entire sum of parts.
The business income: How much does the company make per month? When it comes to selling a business, this approach is pretty popular among buyers. In this way, a buyer and seller can negotiate months, rather than totals to determine business value. If the business profits $7k per month, a buyer could say they’d buy it for 7 months income while the seller might negotiate for over a year. All the same, the income feeds the equation in the matter. Here’s how to how do you value a business based on turnover.
Using similar businesses: A lesser popular way to determine business value, but many still will use it. In this way, you take businesses that are within your vertical who have public values and use those to determine your business value. It could be that your business is just as great, however, you don’t optimize for financial gain just yet. In this way, the buyer will determine what they think the value is once they implement the appropriate revenue model.
The buyer and seller are likely to have to find an agreement when it comes to how the assessment for sale price functions. A bank or venture capitalist might already have a determination set based on previous projects they’ve funded, which is why having multiple assessments ready can be favorable for you.
In the end, it’s a good business practice to understand your value. It can make you a lot of money down the road. You aren’t going to be able to pitch your product to an investor very well if you don’t have a grasp on your real value.
Remember, if you are able to walk away from your business with a check rather than the business closing sign, you win!
Check Writing Services And Mailing SO MUCH MORE!
Check Issuing is best known as one of the top check writing services and mailing online. We have a reputation which is unrivaled when it comes to providing payment services and protection. We are a family business that thrives on return clients. We don’t just exist to make the next sale, we elevate by making our current clients happy.
Return clients are our biggest source of revenue. Our family environment means clients get the best customer service available. When you are a client with Check Issuing, we put your needs first and foremost. We always are working for your business even after you’ve accepted us. And that’s the way things should be! We never settle or feel as though we’ve “done enough.”
Our system is robust. We pride ourselves in having the most modern check writing system available online. Our product and our client services are simply second to none!
Have a look at some of our check writing features.
Branding: Brand your checks. When you send generic checks, clients may interpret your business as less professional. Attention to details matter. Put your company’s name on your checking. Remember, people are cashing checks, receiving money, don’t you want your company’s name associated with the great spirit of receiving cash? Of course, you do. We make the process easy, also.
Memorandums: Don’t just send a check, communicate messages while sending those checks! Emails are great, but they also get caught up in spam filters. Posting messages on social media can be a great way to reach out, but you can’t depend on someone’s newsfeed seeing it. But you can depend on someone opening a check. No one ever skips out on cash. The inside of a check envelope is a stellar spot for messaging. Having a sale, offering discounts or coupons, changing your terms of service or throwing an event? Let the people who matter know by creating a pamphlet and putting it inside their check envelopes.
Fraud prevention: Our check envelopes come in a fraud-proof material. I know, that sounds crazy, but it is true. You can’t just see inside or our envelopes or scan them with nefarious fraudster tools. Check Issuing is at the top of our game when it comes to making sure you financial interest are safely secured.
Check Fraud: We prevent that. Banks have a system for verifying that our checks are legit, so you can sleep at night knowing that criminals and thieves can’t just replicate your company’s checks on a whim.
By using Check Issuing, you take all the pressure away from a task that must be done, but shouldn’t take up too much of your energy. We are professionals, this is our business and we are here to serve you!
Contact us today, let’s have a conversation! 866-535-3954
Learn why Checkissuing one of the top accounts payable outsourcing companies Is Right For Your Business
Why An Accounts Payable Automation Solution Is Right For Your Business
We are a culture of control freaks. We want to do it all, manage it all; quality tests it all. Even some of us who are granted the benefit of large-scale teams, we still manage to find ourselves burning the midnight oil “refining” the work of others. Or sometimes we just skip even delegating the process out and find ourselves, as Bo Jackson famously once said, “JUST DOING IT.” ( the suggest the wrong tense, but you catch the idea I assume).
The point is, we aren’t good at giving up our control and allowing a third-party to take over the reigns. We have trust issues. That’s why whenever suggests that our business could run more efficiently by using, say, a third party accounts payable automation solution; our heads tend to make the current explosion.
And thus, we continue down our path of being an isolationist entrenched in managing an account payable solution (you know, when I say “solution,” I mean YOU). I know this doesn’t sound like a huge deal, I mean it’s accounting, who cares?
Everyone, that’s who.
Check Issuing is the most trusted accounts payable outsourcing solutions on the web. We have a book of happy clients who have been with us for years. We service companies who refuse to focus on matters outside of their product or service’s ultimate evolution.
Check Issuing helps companies to a more professional check writing level. Our service makes sure your checks go out on time, are secure from check fraud, and are branded with your trusted logo.
We help you see the light when it comes to giving up that control. We are a company built on loyalty through our hard work, integrity, and client services.
Give us a call today and let’s talk. 1.866.535.3954
Resources to determine business value:
How to value a business calculator
Equity valuation calculator
How to value a business based on revenue