As an owner/operator of a Small or Medium sized Enterprise (SME) business, one of your likely goals is to grow your business into a valuable asset, allowing you to ultimately sell it at a price that can fund either your retirement or even facilitate you moving onto your next big adventure.
In a recent survey of over 180 SME owners* in Australia and New Zealand, results showed that only 35% of these business owners had enough income and assets outside of their business to be able to fund their future plans.
For most SME owners, the business itself is their main asset. We’ve even heard people say “my business is my super.” If that’s truly the case, then maximising the value of their business is key to their financial future.
However, SME owners are sometimes blind to the fact that there is nearly always a large “value gap”. That is, the difference between what the business is worth today, and the value it needs to be at in order to achieve the future they envisage. The time that it might take to bridge the value gap is also often overlooked.
Knowing the current value of your business and understanding where it needs to be for you to achieve your future goals, can help you to properly plan and prepare for your future.
We can work with you to first establish a base-level valuation for your business. Then through our introspective evaluation and comparison to industry benchmarks, we can pin point the areas where you can make the most improvement in the value of your business. The process will reveal very clear steps towards achieving your goals.
We accompany the valuation process with an ongoing analysis service, which is vital to ensuring that you stay on track and are alerted to areas where adjustments to your business plan are needed to keep moving in the right direction and towards the desired future business value.
* In the period 1 January to 21 June 2019