Why is it important to know the value of your business?
As a business owner, a business valuation provides multiple facts and figures regarding the actual value of your company, not just where your company is today, but more importantly, where it’s going in the future. It creates a better understanding of your company assets, which provides an accurate valuation of the business. This is also helpful in determining the true resale value of your company on the open market. This valuation goes beyond stock market and total asset value to give a true value of a company as a whole. The 3 methods below are simple calculators, and while they don’t take into account all the factors that contribute to the value (or lack of value) for your business, they can be used to establish a guideline. Establishing the valuation of your business allows you to increase your company’s value by comparing previous valuations and setting new goals to take you to the next level.