Business Growth And Development

Business Valuation

Deck: Business valuation goes beyond simple mathematics, but to get some idea of what your business might be worth, consider the three methods below. Your business is likely your largest asset so it’s normal to want to know what it is worth. The problem is: business valuation is what one might call a ‘subjective science’….

Business Growth And Development | Time

What a Study of 14,000 Businesses Reveals About How You Should Not Be Spending Your Time

In an analysis of more than 14,000 businesses, a new study finds the most valuable companies take a contrarian approach to the boss doing the selling. Who does the selling in your business? My guess is that when you’re personally involved in doing the selling, your business is a whole lot more profitable than the…

Business Growth And Development

6 Reasons Not To Diversify

Diversification is a sound financial planning strategy, but does it work for business building? How does Vitamix get away with charging $800 for a blender when reputable companies like Cuisinart and Breville make blenders for less than half the price? It’s because Vitamix does just one thing, and they do it better than anyone else. WhatsApp…

Business Growth And Development

What’s So Special About the $1Million Mark?

If you’re wondering when is the right time to sell your business, you may want to wait until your company is generating $1 million in earnings before interest, taxes, depreciation, and amortisation (EBITDA). What’s so special about the million-dollar mark? The million-dollar mark is a tipping point at which the number of buyers interested in acquiring your…

Business Growth And Development

How To Get a Big Company Multiple For Your Business

Big public companies trade at a significant premium over small businesses in the same industry because investors perceive big, sophisticated companies as a safer bet than small, owner-dependent companies. Looking at some USA examples (minimal data available for Australian market) Let’s take a look at the professional services industry. Although most consultancies are a small…

Business Growth And Development

10 Things That Make Your Business More Valuable Than That of Your Competitors

The value of your business is partly determined by your industry. For example, cloud-based software companies are generally worth a lot more than printing companies these days. However, when we analyse businesses in the same industry, we still see major variations in valuation. So we dug through the data available to us from our partners at…