Articles

For many business owners, the question, “What is my business worth?” crops up frequently. It’s a natural query, but it’s often surprising how few SME owners have a clear answer. Compare it to knowing the value of your car or home—you likely have a solid figure in mind for those. However, when it comes to your business, the number often feels elusive. 

But here’s the catch: That’s not the right question to ask. 

The Value Today: A Starting Point, Not the Finish Line 

If you plan to sell your business someday, the value of your business boils down to one simple fact: it’s worth whatever someone is willing to pay for it. While this might sound unhelpful, it’s an important starting point. 

Why? Because knowing your business’s worth today is only the beginning. The real opportunity lies in increasing that value over time. Every decision you make—big or small—has an impact on what your business could be worth to a prospective buyer in the future. 

Shaping Your Business for Maximum Value 

Building value in your business is not about luck; it’s about strategy. At CMC Business Advisers, we work with owner-managers to develop tailored exit strategies. These strategies focus on two key areas: 

1. Eliminating Value Discounts: Identify and address characteristics that might make a buyer hesitant or reduce the perceived value of your business. These could include over-reliance on a single customer, outdated systems, or weak financial controls. 

2. Adding Value Premiums: Focus on features that attract buyers and justify a premium price. This might mean building a strong management team, diversifying your customer base, or demonstrating consistent profitability and growth. 

These two areas are where your efforts can yield the greatest return. 

The Right Question to Ask 

Rather than asking, “What is my business worth?” the more powerful question is: 

“What can I do between now and when I sell to make my business more attractive and valuable to a buyer?” 

This shift in focus transforms your perspective. Instead of dwelling on a static figure, you begin to take action, making strategic improvements that will enhance your business’s value over time. 

The Journey to a Valuable Exit 

At CMC Business Advisers, we view this process as more than just a series of tasks. It’s a journey—a path from where you are now to a clear destination: a business that’s both attractive and valuable to the right buyer. 

We’re here to guide you every step of the way, helping you identify opportunities, navigate challenges, and ultimately, achieve the best outcome for your business. 

Your success is everything. 

Ready to maximise the value of your business? Contact me via the form below to discuss how I can support your journey, or reach me on LinkedIn.