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Strategic Insights: What is Your Business Worth?

  • by Jocelyn Wallace

 For most business owners, the value of their company represents not just their hard work, but their future. Yet, business valuation is often overlooked amid the daily hustle of running operations, managing teams, and solving problems. Understanding your business’s worth—before you ever consider selling—equips you with options, and, importantly, with the insights needed to build lasting value.

Why Knowing Your Business’s Worth Matters

Imagine having a nest egg where 80% of your net worth is invested. Now imagine not knowing its value. For many entrepreneurs, this is exactly the case. They pour everything into their business but don’t keep a pulse on its market value, leaving them vulnerable when the time comes to sell or step back. Suddenly it seems like they’ve been building a house of cards.
 
  
 
A business that appears highly profitable on the surface might not automatically attract buyers. It takes deliberate planning, backed by financial insight, to position your business as a valuable and sellable asset. The sooner you start this journey, the greater your control over the outcome.
 
 
 
 
The 70% Drop off: Why Most Businesses Don’t Sell
The statistic is startling: only about 30% of businesses that go to market actually sell. This low success rate often comes down to one of two factors—poor planning or over-reliance on owner involvement. Buyers are seeking businesses with scalable value and transferable systems, which can operate smoothly without the current owner’s daily oversight.
 
 
To make your business appealing to potential buyers, it’s crucial to develop robust, repeatable systems and ensure your team can thrive independently. This not only boosts value but positions your company for growth, attracting a larger pool of qualified buyers when the time is right.
 

Why You Can’t Afford to Wait

When planning to increase the value of your business, time is your best ally. Just as with retirement savings, the earlier you start, the greater your returns will be. A business with intentional, value-driven growth from early on is one that will attract buyers and hold strong appeal when you’re ready to sell.
 
Even if you’re years from considering a sale, begin now. Don’t wait for an unexpected health issue, family need, or economic shift to force your hand. Building a high-value, high-performing business gives you the leverage and freedom to decide when—and how—to make your next move.
 
For more strategies on creating, preserving, and growing your business value, reach out to Profit Plus Business Advisors. As Certified Exit Planning Advisors (CEPA®) we’re here to help you make the most of your business’s potential – today and in the future.
 
 
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Jocelyn Wallace

Jocelyn Wallace works as an extension of your team to guide strategic growth, optimize operations, and align people to the mission.

 For a more complete list of programs and services offered, click here.

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