Valuating your Business
It’s important to be honest here. For most business owners the value of their business is a complete unknown.
In calculating your business’ net worth you will need to consider:
The first step is to valuate your business, and there are three methods for determining fair market value:
Next, look at ways to improve the value of the business with the following methods. Devise ways in each area that will make a difference to your business value:
Often in a small business much of the real value rests in the owner’s realm of expertise, knowledge and intellect. If you (the business owner/manager) are planning to retire you will want to develop a plan for transferring knowledge, know-how and leadership responsibility. If your business is merely surviving and creating a job for the owner or just getting by day-to-day, it may not be worth more than the salvage value.