Over 60 million Americans work for small businesses. Properly managing a small business is a lot harder than it may sound. As time goes by, the number of moving parts your business has will grow. After long periods of growth, you may want to stop and assess just how financially sound your company is. While there are many ways to assess the worth of your small business, nothing beats a professional valuation.
Estimating the worth of a small business can help you navigate a number of complex situations. The following are some common reasons why entrepreneurs invest in business valuations.
Making your small business profitable will require you to think beyond your local market. While cornering your local market is important, you have to know when to expand into new markets. If you feel like you are ready to make this step, you will have to raise some capital. Large expansions can get expensive, which is why taking on new shareholders is a great idea. Before you can approach investors, you need to know how much shares in your business are worth.
Having a business valuation performed by the professionals at Jack Trent and Co is crucial when trying to take your business to new heights. Once you know what your business is truly worth, you can approach investors from a position of power. With this power, you can get the capital you need without long-term financial regret.
There comes a time in every business owner’s life when they feel like they are ready to retire. When this time comes, you want all of the years you spent growing and managing your business was worth it. If you are attempting to plan an exit strategy, then knowing what your business is worth is vital. When entertaining offers from potential buyers, you need to make sure you are getting fair market value. Allowing accounting experts to take a look at your books is the first step in the valuation process.
Once an accountant gets this information, they can piece together a fair assessment of your company’s worth. Attempting to sell your business without a valuation can lead to you entering retirement in the red.
If you are like most business owners, you work hard to provide your family with a great life. Making sure your family is taken care of after you die should also be a top priority. If you have started the estate planning process, you will need to know the worth of your business to complete it. With this information, you can figure out how to provide your family with the fruits of your labor after your death. The team at Jack Trent and Co. also provides estate planning services to our clients.
As you can see, there are many situations where having a business valuation is beneficial. With our help, you can get a detailed business valuation performed.