This is a common question that every business owner asks at one time or another. The answer is simple:
Your business is worth what someone thinks it is worth!
Yes, I know, that’s very simplistic. But at the end of the day, you will only know its actual value when you cash the check.
There are many rough rules of thumb in every industry for valuating a business. To find one, just Google “Rule of Thumb Valuation for (your industry)”. This will at least give you a range that you can use to determine what amount you can expect to receive when you sell.
Businesses that are dependent on the owner for sales and profits are usually much harder to sell. Buyers are much more interested in buying a business with systems in place that are being utilized by trained employees. The buyers that pay the highest prices for businesses are usually not looking for a job, but rather an investment.
Another thing the high-paying investor is looking for is a business with monthly recurring sales. This makes it easier for the buyer to finance the business because they can point to the recurring sales as a method of repayment.
So if you want to sell your business for top dollar, you must make it a priority to develop and implement systems, train your employees on using them, and increase your recurring monthly sales.
Before you do anything else, why not join The Profit Maximizer Club on FaceBook. This community is designed to help each other grow their profitable dream business. Click here to request to Join! (http://bit.ly/SmartProfitCommunity)
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In this group you may feel free to message me directly if you have a question or need help. I am a CPA that has been working with small business owners since the late 1970’s. There is a very good chance that either my clients or I have faced your problems before and I can help you avoid our mistakes and repeat our successes.
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Be sure to check out my blog, “Small Business Profit Maximizer!” Where I share these videos and other ideas you can use to make this your most profitable year ever! Click https://wjb-cpa.typepad.com/ to go to the blog page.
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Also click on www.thesmartprofitmaximizer.com for our online coaching courses including the following free courses:
• Double Your business profits in 30 Days
• Turn to your customers when you need cash now
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Finally, if you have a question or wish to talk to me you can email me at Wayne@wjb-cpa.com or call my office at 915-857-8158.
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Thanks so much and let’s make this our most profitable year ever!