My Business On Purpose

The number stunned me when I first heard it.  80% of a business owner's net worth is locked away in the asset of their business. Can you imagine 80% of your retirement dollars bottled up in one stock?   The cash flow of the business can often quell the desire for an owner to diversify their assets into anything beyond the business.  A business can be a high-return asset for sure… and with it, equally high risk. A standard question for any business owner to ask is, “How much is my business worth if I wanted to sell it?” The short answer is, “Whatever a buyer will pay for it!” There are ways to begin to have an educated idea on what your business would actually sell for on the open market.   Here are four metrics that you will need to know when getting prepared to understand a reasonable market valuation for your business. Before we lay out this framework be reminded that we are not financial or legal advisors and all such decisions should be consulted by financial and legal professionals.   First, all business