WHY YOU SHOULD VALUE YOUR BUSINESS
Small business stats:
82% of businesses fail due to cash flow problems - U.S. Bank
27% of businesses surveyed by NSBA claimed that they weren't able to receive the funding they needed - Fundera
Who should value their business?
Why all business owners should value their business
"All business owners should know how much their business is worth because it's the only measure that takes into consideration where your company has been, where it is today, and where it's going in the future.
4 Reasons to perform a company valuation:
1. Your business is in the start-up phase; you will need to value it to determine how much of it you will have to give to investors in exchange for seed money
2. You provide quarterly or annual updates; give stakeholders a clear picture of the financial health of the business and comprehensible metric that shows exactly what their investment is currently worth
3.You're fundraising; to determine how many shares you will give for a certain investment, you must first assign a value to your business. In addition, if you plan to approach a bank for funding and want to use business as loan collateral, you will also need to determine its value.
4. You're selling your business
- Sell or leave business
- Death or disability
- Key employees and partners you're trying to motivate to be more efficient, productive, or otherwise profitable