Most Business Owners Are Flying Blind. Are You Too?

Understanding what your business is worth is an essential part of owning a business, as it is often your most valuable asset. However, according to a survey by M&T Bank, 98% of small business owners who responded did not know the value of their business. 

Being in the dark on the value of your business puts you at a disadvantage while you manage and run it. Additionally, not knowing the value of your business hinders your ability to exit successfully, whenever you chose to do so. 

Robert King, an investment banking partner at Crewe, says business valuations are important to maintaining the health of your business. King states that business valuations help with a “sale, the issuance of stock options, succession planning, tax and estate planning, capital raising, implementing a buy-sell agreement, insurance needs or to obtain business funding.” 

A valuation helps you avoid any surprises and allows everyone involved in the business to have a realistic picture of what their asset is worth. 

Small business owners are usually extremely busy with day-to-day operations and often do not have time to consider a business valuation. Professionals are here to help with that and to make it an easy process. CBA can help you figure out what your business is worth. Click here.

The cost of a business valuation can vary, and you should be specific with the intent and goal of your valuation so that you get the most out of the experience. As a small business owner, you should aim to get a business valuation on a regular basis. 

You should decide how often you need one—annually, every few years, or more or less frequently depending on how your business is growing. A business valuation will help you to determine weak spots in your business and where you need to improve. Working with valuation professionals will ensure you get a valuation that you can trust. 

The importance of regular business valuations cannot be underestimated. They are essential to the health of your business and will provide you with information that is useful to your management and eventual exit of your business. 

Be prepared and become informed about your most valuable asset and seek a business valuation with CBA today. Click here.