Why would you need a Business Valuation?

Why would you need a Business Valuation?

In finance, valuation analysis is required for many reasons including tax assessment, wills and estates, divorce settlements, business analysis, and basic bookkeeping and accounting, which can be managed with software like GeekBooks. Since the value of all things will fluctuate over time, valuations are as of a specific date. Valuations do not last forever; you will need to get them whenever a big event comes up. Remember value always changes.There are many reasons why someone would need a valuation done. Maybe you are selling your business. When you sell a valuation will need to take place to determine how much your company is actually worth.

80/20 Customer “Gold Program”®- Proactive vs. Reactive Customer Service

80/20 Customer “Gold Program”®- Proactive vs. Reactive Customer Service

The benefits of this 80/20 Customer Gold Program® are significant: Synergistic Buys: Most customers only purchase about 5%-20% of the products or SKUs a company produces. When you build proactive relationships, the customer can be introduced to other products that may benefit them but they currently do not purchase. Thus synergistic buys are possible to grow the business. Hot Leads: Your top customers are aware of other companies that may need your products but they may have never been asked. As you meet with and grow the personal relationships, they will be willing to provide people they know that may use your products. Thus another way to grow the business.

Rules for Minority Discount in Business Valuations

Rules for Minority Discount in Business Valuations

If three people owned a portion of the company dispersed as 50%. 49%, and 1%, only one person has controlling interest whereas two people would have a tied controlling interest if they voted together on an issue. Hence the person who own 1% and the person owning 49% would not actually have 1% or 49% of the value of the company separately because his or her stock has no controlling interest. Their stock would be less marketable than the 50% owner because they have no controlling interest. The person with 50% still has controlling interest because the company is now divided in three and that person would control. Any block of equity being valued that has over 50% ownership would not have a minority discount applied in a business valuation.

Rifle vs. Shotgun Marketing ®

Rifle vs. Shotgun Marketing ®

What if your industry’s growth rate is 2% per year but your financial projections show a 20% growth rate? Where do you get the 18% growth from? (20% projected growth vs. 2% industry growth). It must come from the competitor’s market share. It is very expensive to take market share from competitors.

Productivity Pyramid ®  Holding On To Your A Performers

Productivity Pyramid ® Holding On To Your A Performers

Productivity Pyramid ® holding on to your A Performers. A productivity improvement program, Productivity Pyramid ® with a pay for performance program where there are company and employee goals with monthly coaching sessions should be implemented. This method can raise a company productivity by over 400% and help you get those A performers. If monthly coaching sessions are held, how easy do you think it would be to hold an employee accountable? Much easier than an annual review.

Edible Leftover Food Waste

Edible Leftover Food Waste

Putting things into perspective. Food waste begins with all of us. If we train our children on the responsibility we each have to protect our food sources, we change a generation. Some sustainable businesses do donate their discontinued safe food that is not sellable to those in need. But organizations who would help to distribute the donations are minimal, as is storage. Most manufacturers have limited recycling facilities near them, and the cost of transportation is high, not to mention the liability concerns.

Cash Flow – The Matrix

Cash Flow – The Matrix

Cash flow rolling historical and future projections can be a critically important tools for growth, seasonal or shrinking companies. Many companies have died in their growth because they did not track cash flow or the needed cash flow resources.

Employee Coaching Accountability and Rewards -Not Annual Critic

Employee Coaching Accountability and Rewards -Not Annual Critic

Have you ever had a good COACH? This often occurs on an athletic team. What are the characteristics of a GOOD COACH? Employee Retention – Recruitment: Lower Expenses. The rule of thumb is if you lose an “A” performer, it takes you 3 years of salary to get them back. Having goals accountability and rewards for your team ensures that you keep your “A” performers because it’s a huge expense to get another one back.

Real World Examples using Dashboards

Real World Examples using Dashboards

Many companies have died in their growth because they did not track cash flow or the needed cash flow resources. Keys to Performance Metrics | Graphical Dashboard, a 12-month rolling tracking system can work on most performance metrics. It works by adding up the 12 months and graphically representing the sum on a monthly or another time basis. For example, if you add June of the present year; then the previous June is taken out of the sum. With a 12 month rolling metric any change in slope is significant because a current month replaces a past year month. Any change represents a change in the month’s activity rather than waiting for YTD to get to the 4th quarter.

Skills and Optimization Methods

Skills and Optimization Methods

80/20 Customer Gold Program @! What is the Pareto Principle? The 80/20 Rule. This rule was developed back in the 1880s by an Italian/French man and it applies today. What are some examples of the 80/20 principle? First, you must find out who the top 20% of the customers are. Take your customer sales data for the last two or three years and download this data to a spreadsheet. The benefits of this “80/20 Customer Gold Program ®” are significant

Coffee, a soup line, and friendly conversation

Coffee, a soup line, and friendly conversation

It takes time for the chronically homeless to learn to work. Is a homeless bus ticket program the only way out? For some, it may be that first step into a better future. For others, it’s just another stop, among many. Helping the homeless transition from living on the streets to actually holding down a job and gaining housing is tough. Tougher for those who are chronically homeless, versus those who can transition easier with the addition of low-income housing.

Productivity Pyramid ®  Revenue and Profits

Productivity Pyramid ® Revenue and Profits

Most companies utilize an annual employee performance review or no review at all. Preparation for this review is tedious and not very enjoyable. One must think back on the year and remember the good and bad employee performance elements. This process is painful. The ultimate outcome has many flaws. Productivity Pyramid ® Revenue and Profits

The Humanitarian Volunteer Is You!

The Humanitarian Volunteer Is You!

Get with some of your pals in the office and book your flights around an upcoming or ongoing charity operation that not only helps others in need, but helps instill a true spirit of camaraderie for you and your colleagues. Fly all over the world, do your business dealings, see the sights, meet and help others who might not have the benefits that you do. It’s not a guilt trip! It’s a fun trip! A trip where you help someone and in return they help you learn about culture, community, and being responsible for what you do with your time, your special skills, and your money. Some might even call it, paying it forward.

101 Business Valuation Basics

101 Business Valuation Basics

Compare: You can estimate your worth by comparing your business to similar businesses. This estimate should not be used for liquidation purposes because it does include future sales and other activities other than your assets alone. It can also be misleading since you cannot compare exact situations. Seller’s Net Cash Flow: This method utilizes profit and loss statements to determine the worth of the business. Corporate valuation services can use this information to help you learn how to increase the value of your business through various methods. For instance, you might cut out some of the waste that you produce or limit spending in certain areas in order to increase your net worth. Again, it is always best to have professional valuation services work with you when attempting to sell your business.

Performance Dashboards

Performance Dashboards

With a 12 month rolling metric any change in slope is significant because a current month replaces a past year month. Any change represents a change in the month’s activity rather than waiting for YTD to get to the 4th quarter.

It is recommended that a business valuation is done every two years. With my nine methods and calculations, it can be used as a metric for management performance.With a 12 month rolling metric any change in slope is significant because a current month replaces a past year month. Any change represents a change in the month’s activity rather than waiting for YTD to get to the 4th quarter.

Financial Dashboards And Why You Need Them

Financial Dashboards And Why You Need Them

Many companies have died in their growth because they did not track cash flow or the needed cash flow resources. If you graph cash flow and its elements, such as, A/P, A/R, Inventory, capital expense, bank accounts, etc. for the last two years, it becomes much easier to project 12 months into the future and see trends that may have happened in the cash flow area.

Homelessness in America

Homelessness in America

Running out of relationships is the number one cause of homelessness in America. Homelessness in America. Approximately 554,000 homeless people live in the United States. Out of that total, there are roughly 190,000 who have no shelter at all. Statistics from the U.S. Department of Housing and Urban Development capture the statistical reality of homelessness on the American streets. If you can imagine 8 to 10 NFL stadiums filled to capacity, you can begin to visualize the impact homelessness has on a community and a nation.

Proactively Going After Customers – Productivity Pyramid ®

Proactively Going After Customers – Productivity Pyramid ®

Productivity Pyramid ® increases profits and value for companies. Now the magic of turning supervisors from critics to coaches. Each month schedule one hour per employee to go over WAYS THAT YOU BOTH CAN HELP TO ACHIEVE THE EMPLOYEE’S GOALS. Try incorporating all of the characteristics shown above for a good coach. What happens is the employee’s annual goals magically get completed in two – three months. Then more goals are given and both help to achieve. This happens over and over to raise productivity by four to ten times.