Understanding Business Value Early is Critical

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Understanding Business Value Early is Critical

Small business ownership is a cycle that is repeated over and over.  In the beginning, the business owner starts and builds the business. The business provides income until the owner is ready to leave the business. In the end, the owner leaves the business and realizes the value they have created. Unfortunately, the end of this cycle often involves significant disappointment if you don’t understand business value early.

When business owners are ready to leave their business and learn the business value is going to be much less than they expected they may have to put their plans on hold or cancel them. If they are forced to leave the business due to health or family situations, they may need to discount the business price significantly, or consider liquidating the business assets. These situations are not good for the business owner and leaves the business owner very few options.

If the business owner understands business value early (5+ years ahead is best) of their exit, they have an estimate of how much money they will receive when they sell the business. They have the opportunity to plan and prepare for their exit to maximize this value. They may be able to create an extremely valuable business which will fund their next adventure nicely. If the business is not extremely valuable, with the value knowledge early, the business owner can diversify, acquire more businesses, or invest in other areas to ensure they have funds available for their life after the business.

Download our free business valuation guide here to understand more about business valuations and view our business valuation FAQs to answer the most common valuation questions.

Either way the owner that knows the value early is better prepared for their eventual exit from their business.  Understanding business value early gives you many options and the knowledge to avoid life changing consequences later.

If you want to learn more about this and other important topics for business owners follow Exit Your Way® on LinkedIn, check out other blog articles, or email us: info@exityourway.us

Do you want to know if your business is ready for your exit or what you should do to prepare? Learn this and more with our business exit assessment here.

Damon Pistulka

Business management, value improvement, business sales.

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Exit Your Way® provides a structured process and skilled resources to grow business value and allow business owners to leave with 2X+ more money when they are ready.

You can find more information about the Exit Your Way® process and our team on our website.

You can contact us by phone:  822-BIZ-EXIT (249-3948)   Or by Email:  info@exityourway.us

Find us on LinkedIn:  Damon PistulkaAndrew Cross

Find our Companies on LinkedIn: Exit Your Way®,  Cross Northwest Mergers & Acquisitions, Bowman digital Media 

Follow Us on Twitter: @dpistulka  @exityourway

Visit our You Tube Channel: Exit Your Way®

Service Professionals Network:  Damon PistulkaAndrew Cross

Facebook:  Exit Your Way® Cross Northwest Mergers & Acquisitions

Other websites to check out:  Cross Northwest Mergers & AcquisitionsDamon PistulkaIra BowmanService Professionals Network (SPN)Fangled TechnologiesB2B TailDenver Consulting FirmWarren ResearchStellar Insight, Now CFO, Excel Management Systems  & Project Help You Grow

Schedule a call to discuss your business goals and answer your questions on growing business value, preparing for sale or selling your business.

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