To begin with, when you know what your business is worth you have a more realistic perspective from which to plan the future direction of the business, i.e. let’s say your business was worth $750,000 … would your thinking about it’s future change if it was worth $2,000,000? Also, do you plan on working until the “final day”? Is the business to be turned over to your children or to your employees? Or will you sell to a competitor or an outside buyer? All these alternatives become easier to deal with when the business value is known. Estate and tax planning also require a business valuation. And finally, there is one benefit that some owners refer to as “breathability”. Without a valuation you guess about the value of your business. With a valuation, you know. And knowing your business value allows you to “breathe” a whole lot easier.
As a business owner, what are the benefits I receive by having my business appraised?
Bookmark the permalink.