What is your business worth? What steps can you take to make it more valuable?
Though it’s not a perfect comparison, let’s think about valuing your business the way you might value a home. Most people scramble to make a lot of changes to their home a few months before putting it on the market, hoping that the effort they put in will make the home more valuable to a buyer. Later, they look back at their finished masterpiece, ready to sell, and say to themselves ‘Why didn’t we do this sooner so we could enjoy it?’
In the same way, business owners typically don’t consider the value of their business in the eyes of a buyer until they are close to selling it. And they rarely realize that making these changes sooner, rather than later, can make the business easier to manage and market and even more fun to own. Unlike a home, it can take much longer to build greater value into a business so getting an early start is a good idea.
Beyond tangible assets like equipment and real estate, there is a lot of value in a business that goes unarticulated, under-developed, or unprotected. In a workshop I am co-leading with Michelle Bomberger of Equinox Business Law next Wednesday, I’ll be talking about ways to develop and articulate aspects of your business to make your business worth more not only to a buyer should you decide to sell, but also worth more to you, the business owner for as long as you continue to own the business, with all those amazing renovations to enjoy yourself. The great thing is, the type of changes I will suggest are also the kinds of changes that will make your business appear more valuable to your customers, clients and colleagues.
Michelle will speak to the legal side of protecting the assets you currently have. For those of you who don’t have any assets in place or aren’t sure how to create assets that will make your business more valuable, we’ll explore how you can use existing or under-developed processes of your business to create intellectual property that you can own and include as assets or simply value added elements of your business.
We will touch on how you name your business and the relevance that has to your business worth and we’ll include a discussion on how you are using tools like newsletters and social media to build or damage the value of your business.
We hope you will join us as this is going to be a fun afternoon of really delving into some deep questions about your business and how to make it worth more to you and your client base as well as worth more to potential buyers.
© 2009 – 2010, Karrie Kohlhaas. All rights reserved.