I want to discuss a small pain point that we have within our organization that is a business valuation calculator. Many people look at real estate and tools such as Zillow or take a look at Kelly blue book on cars and they say"Why don't you have a calculator for business valuations?
It's been going on for a long time and, in reality, we'd like to. Problem is it's hard. And so there are a few really good baselines, like revenue and earnings and we can talk about guidelines and how they will look like. But what makes it so difficult is you can take two businesses, same revenue, same earnings, but with hugely different amounts. Literally two, three X each other, not even close. This is due to intangibles.
There's so many things to an enterprise such as Intellectual property rights, defensibility tools that can create an extremely complex issue rather than simply, Hey, how much are you making and how much are you worth? that hypothetically. We're currently working on it. It's probably too far too early to speak about the issue, but we're currently working with an incredible company to address this issue and will find a solution in the near future. But in the interim, if you have any queries regarding how to improve the value of your business or how much your company is worth, why don't you contact us at Freedom Factory. We're looking forward speaking with you shortly.
How do I prepare my business to sell
Many entrepreneurs aren't sure of how to prepare their businesses to sell. If you've made the decision that you'd like to sell your business. What next? First, what you must do is get your home ready for your business for selling. Therefore, you should get two or three years worth of tax-related tax documents.
Also, financials and put them together. Find them from your accountant and have the documents ready for. If you've not put together an operations manual, this would be an ideal time to do so. You're aware of how your business works, you know the ways that different departments interact and when it comes time to sell your business, you would like for it to be as simple as possible to transition to an owner who is new.
This value is likely to be taken into consideration in the price of sale. So , get your operations manual as well as new job descriptions and make sure your home is in order. The third step is to finding out how to how to put your team together. Find a good broker and an appraiser. Determine the value of your business. Start to craft the story and then figure out what you want to accomplish. we going to bring it to market?
When do we plan to introduce it to the market? What's the tax situation currently. You know, how can I alter my financials? What do I say by that is straightforward. They're going to, we're going to use you EBIDTA or your accountant's ability to do similar things and then translate it into the seller's discretionary cash flow. That is.
A fancy way of describing all the money, that your business creates during the process of filing tax returns. It's all about minimization isn't it? Tax evasion is not legal. Tax avoidance is very smart. It's why you're looking to spend as little tax as possible. Well, we have to translate that you know, from some of your non-cash expenses depreciation, for instance, some of your discretionary stuff and add that back to increase the value accurately.
Highlight the value your business generates, and that's gonna make a big difference. And finally, you know, what industry are you planning to enter? How do we maximize your multiple? And there are ways to be able to do that. Think about the industry you're in. Figure out, you know the financials of your business.
Create an operation manual to ensure that the transition is as smooth as you can. And all of this is going to be, will be easier when you put the right team. Find the most qualified appraisers, locate the right brokers to assist you in preparing your company for selling, and if you need any assistance contact us here toll free at Freedom Factory.
When is the right time to sell my business
This is a crucial issue and when is the right time to sell your company? This is a little more of an art than science. It's basically an assessment of what you know. We're outside. This is my backyard. mountain house , and it's a bit of my happy place.
The first thing I'm going suggest is to get an escape. Leave the workplace. Escape the daily grind whether with your family or away. Now figure out some area where you can go, no matter if you like to fish or ski , or go to the mountains or go to the beach , and whatever else simply go there and change your destination and go to a place that you're comfortable.
Then think about your business. And I look at it and think about it in three questions. The first is, am I here and am I clear? Do I truly believe in my business? Are I doing my best to serve my company or does my business serve me? And I think life is too short to live where you work for your company. Your company is your personal road for more freedom and money.
And the way I define freedom is quite straightforward - it's about doing whatever you like, whenever you want, as often as you want and with whom you'd like. And if you're enjoying what you're doing and you feel like, God, this is amazing, and I am here and I am in the right place and doing exactly what I'm supposed and that's how I look at selling businesses for entrepreneurs in general This is awesome.
And it's not time to sell your business. If you're not certain about that, I would take a second look, and I would dive in and say, is my business positioned with the proper perspective? Do I have a clear idea on where
I'm planning to expand my business on in the next one, three, perhaps even five years? What do I need to do to get over it , and also feel fantastic, and feel like I've achieved what I've done? Now, if your business is growing by 40% per one year or even 50% a year, then you've probably got an eye-opening vision. It's likely that you're doing a great job and you're probably feeling in flow. However, if you've been growing at 5% for the last five years, it's more challenging, and maybe you can find someone who does it better than you.
If my company is growing at 5percent, I'm considering to sell. I'm thinking, okay. I'm looking for an operator. It's more of a strategic person. And how do we focus on really making something incredible, and you're on point and on purpose However, the rate of growth is a good indicator of this.
The final point is, you have done what you set out to do when you started your company, when I began my business brokerage business, i was aware that I wanted to alter the way that entrepreneurs purchase and sell their businesses. I've founded three of the largest brokerages. I hired, the third one, bought them to attract the right people, and I've really made it a much effective market. And that's the thing I wanted to do when I came here.
But if you left your current business and think about it for a moment, would you feel resolved or would you feel like you didn't finish the job you were there to complete. So I looked back at it and I say, okay I'm satisfied with how my business is serving me. Am I clear and engaged each day?
Do I have anything left to do and do I have fresh ideas for implementing that idea? These are the questions that will guide you through it. It's a bit of an imprecise science, but in the end, it's an assessment of your gut. Do you agree? Are you convinced that it's time to sell your company?
If I'm thinking about selling it in six months, it's too in the past. If you have other questions regarding this, or anything else, it would be our pleasure to assist with your questions here at Freedom Factory. Give us a call
Click here https://freedomfactory.com/about-tyler-tysdal/ will give you a free business valuation to find out the worth of your business. Denver business broker Tyler Tysdal will help you to prepare your business for sale.
Call Freedom Factory for a free business valuation
Freedom Factory
5500 Greenwood Plaza Blvd #230
Greenwood Village, CO 80111
Phone: (844-629-8258)
https://g.page/freedom-factory-denver
Contact Tyler Tivis Tysdal Top [Colorado business brokers
https://www.instagram.com/tyler_tysdal/channel/
https://vimeopro.com/freedomfactory/tyler-tysdal/video/465788884
https://independent.academia.edu/TylerTysdal
https://www.flickr.com/photos/tylertysdal/
Tyler Tysdal Business Broker
https://play.google.com/store/books/details?id=wtw9EAAAQBAJ
http://tylertysdalpodcasts.org/3-strategies-to-increase-the-value-of-your-company-today
Watch Video
No comments:
Post a Comment