A shortfall can have a significant impact on your retirement plans and may force you to reassess your desired standard of living in retirement.
Worst case – it can mean you can’t afford to sell.
Retirement should be the best years of your life – the time for you to reap the
rewards of your labour.
As you approach retirement you need to determine your business value gap.
Business value gap analysis
Do you know:
- What your business value needs to be at time of sale?
- How many years it is until you can afford to sell?
- A future profit target that guarantees you a desired standard of living?
Business value gap analysis is a simple process of determining your retirement
income and assets, business value (current and future) and strategies to improve
business profit and wealth.
Grow before you go
If your business value gap analysis reveals a shortfall in business value then you
will need to implement business strategies to improve your profit before you sell.
For example, improving your average sale per customer will increase sales,
gross margin and net profit. Knowing what your business value needs to be
means you can calculate your future profit, gross margin and sales targets.
Value gap analysis provides business owners and managers with piece of mind
from understanding the nexus between a future standard of living at retirement
and business value.
If you own a business, the way you should build it, run it and manage it should be as if you intend to sell it, thereby doing everything to maximise its value. A key way to ensuring you maximise your business valuation is to seek objective professional advice well before you set a sell date.
Start 2014 with the purpose to create a better business this year than you had last year. Choose OBT Financial Group for a professional and accurate valuation service on 07 5462 2277 when it comes time to thinking about getting your business planning in order.