Proving Your Worth

Everyday you prove your worth – at least that’s what you tell yourself.  What have you done today to prove what your business is worth?

The Sounds of Silence are not what we should be hearing.  Even when you are fully committed to building more valuable businesses, you need to take the time to document the value you are building to prove your value to someone else.

Running your business by the numbers is a good start provided you have accurate and up to date Profit and Loss Statements and meaningful Balance Sheets.  Your bank or your buyer is going to ask for a 3 year look back so you might as well do it right the first time.  On at least a quarterly basis (monthly even better) get into your expenses and see where you can cut and examine your income so you understand what people are actually buying.

While keeping good books is a hurdle that many businesses struggle with, even fewer take the time to document how they do things.  Remember if someone is going to buy your business or lend your business money they will want an assurance that the business can thrive without you.  Documented processes will boost the multiple you get to your cash flow which will boost your valuation by 30% to 100% or more.

If you are preparing for a sale you need to spend more time on your company or corporate book or organizational documents.  The neater and more up to date they are, the more serious your prospective buyer will take you and your asking price.

I know you probably think about documenting your business value the same way you think about going to the dentist but think about it this way.  For every process you document, for every months P&L and balance sheet that are accurate, for every organizational document you produce you are producing $10,000 ($50,000, $100,000 or more) of value for your company.  That’s worth doing.

And that’s a lot of money you are leaving on the table if you are not doing it.  Join the Business Godfather LLC Family and start building your more valuable business today.