How much did your home increase or decrease in value last year? Depending on where you live, it may have gone up or gone down by 5 – 10% or more.
How much did your stock portfolio increase or decrease over the last 12 months? By way of a benchmark, The Dow Jones Industrial Average has decreased by around 5.6% in the last year. How did this effect your portfolio?
Now consider what portion of your wealth is tied to the stock or housing market, and compare that to the equity you have tied up in your business. If you’re like most owners, the majority of your wealth is tied up in your company. Increasing the value of your largest asset can have a much faster impact on your overall financial picture than a possible bump in the stock market or the value of your home.
Let us introduce you to a statistically proven way to increase the value of your company by as much as 71%. Through an analysis of 39,000 businesses, we’ve discovered that companies that achieve a score of 80+ out of a possible 100 receive offers to buy their business that are 71% higher than what the average company receives.
How long would it take your stock portfolio or home to go up by 71%? Years – maybe even decades. Track your overall score along with your performance on the eight key drivers of company value. Like a pilot working his instrument panel, you can quickly zero in on which of the eight drivers is dragging down your value the most and then take corrective action.
Your overall score is derived from your performance on the eight attributes that drive the value of your company:
- Financial Performance: your history of producing revenue and profit combined with the professionalism of your record keeping.
- Growth Potential: your likelihood to grow your business in the future and at what rate.
- The Switzerland Structure: how dependent your business is on any one employee, customer or supplier.
- The Valuation Teeter Totter: whether your business is a cash suck or a cash spigot.
- The Hierarchy of Recurring Revenue: the proportion and quality of automatic, annuity-based revenue you collect each month.
- The Monopoly Control: how well differentiated your business is from competitors in your industry.
- Customer Satisfaction: the likelihood that your customers will re-purchase and also refer you.
- Hub & Spoke: how your business would perform if you were unexpectedly unable to work for a period of three months.
To find out how you’re performing on the eight key drivers of company value and start your journey to increasing the value of your largest asset, contact us.