If you’re trying to figure out what your business might be worth, it’s helpful to consider what acquirers are paying for companies like yours these days. A little research will probably reveal that a business like yours trades for a multiple of your pre-tax profit, which is Sellers Discretionary Earnings (SDE) for a small Read more about Tweaks that can add Millions to the Value of your Business[…]
. One of the core principles of creating a more valuable business is ensuring your business can run without you by getting managers to think like owners. The theory goes that empowered employees are the best positioned to solve your company’s thorniest issues, as they are the ones closest to the problems. In theory, people feel Read more about The Downside of Being Upfront with Employees[…]
Have you ever wondered how to make your company more valuable? Perhaps you’ve heard an industry rule of thumb and assumed that your company will be worth about the same as a similar size company in your industry. However we’ve found there are eight factors that drive the value of your business. They are all Read more about 3 Ways To Make Your Company More Valuable[…]
Deck: Business valuations go beyond simple mathematics, but to get some idea of what your business might be worth, consider the three methods below. Your business is likely your largest asset so it’s normal to want to know what it is worth. The problem is: business valuations are what one might call a “subjective science.” Read more about The Science of Business Valuations[…]
How do you know the right time to sell your company? One answer to this age-old question is that the time to sell is when someone else is willing to invest more in your business than you are. When you start a business, nobody is willing to invest in its success more than you. You’ve already Read more about One Way To Decide When To Sell[…]
Stephanie Breedlove started Breedlove & Associates in 1992 as a way to pay for child support. The big payroll processors weren’t interested in dealing with one person’s wages and doing it themselves was complicated and time-consuming, too much for the then overwhelmed Breedloves. Breedlove saw a business opportunity and started a payroll company for parents Read more about The Anatomy of a Successful Exit[…]
Diversification is a sound financial planning strategy, but does it work for company building? How does Vitamix get away with charging $700 for a blender when reputable companies like Cuisinart and Breville make blenders for less than half the price? It’s because Vitamix does just one thing, and they do it better than anyone Read more about 6 Reasons Not To Diversify[…]
There’s a steady breeze from the northwest, which cools the warm Caribbean afternoon. Framed between a palm tree and the turquoise water, you notice a man reading. He appears to be working, which seems strange given his appearance: shaggy blonde hair, linen shirt, surf shorts and flip-flops. You squint and realize the man is Richard Read more about Thinking Vs. Doing: The Owner’s Dilemma[…]
Recurring Revenue model. If you have resolved to make your company more valuable in 2017, you may want to think hard about how your customers pay. If you have a transaction business model where customers pay once for what they buy, expect your company’s value to be a single-digit multiple of your Earnings Before Interest Read more about Will 2017 be your year?[…]
Have you set a goal for your company next year? If you’re like most business owners, you’re striving for an increase in your annual sales. It’s natural to want your company to be bigger because that’s what everyone around us seems to celebrate. Magazines profile the fastest growing companies, industry associations celebrate their largest members, Read more about Rich v Famous[…]