Business Valuations – Certified Business Valuator Australia

Month: December 2017

What You Must Know When Marketing Your Business?

Marketing is both an art and a science. Anyone who says differently probably isn’t doing very well marketing his or her business. On the art side, intuition definitely plays into the equation. On the science side, it is about systems, strategies and plans. Outlined below are some areas of consideration when you decide to market your business.

Determine where your business is currently
Determine where you want to be
Know who your market is and/or needs to be
Identify what is important to your clients
Identify and evaluate threats and opportunities. For example, lack of experience in the marketplace, budget, competition, no clear direction.
Assess existing and potential appeal of your product or service to current and future clients or customers
Select growth strategies and a competitive strategy
Develop a plan of action
Commit to focused action for results
Having fun
Identify and evaluate strengths an weaknesses in the areas that determine success to achieve this outcome. If you are unable to do this, get outside assistance.
Determine a budget
CREATING DIRECTION WHERE DO YOU WANT TO BE?
Where do you want to be as an organization?
What kind of image do you want to project?
What are the benefits of doing business with you?

COMPETITIVE ANALYSIS
Purpose and function of your product or service
What makes your business unique from other similar businesses?
What does your business have in common with other organizations?
Biggest threat to success of organization?
What you must know about the current market?
Why do people buy from you?
Why don’t they buy from you?
Assumptions by current staff about the market?
What can you predict about the future? What to do about it?
How attractive is your product or service to the consumer?

HOW DO YOU GET THERE?
Target market
Staff involvement
Most effective strategies for marketing and selling your services/product
What is your plan of action?
Are you committed to your success?

WHEN YOU MAY NEED TO CONSIDER HIRING A BUSINESS COACH
When it is difficult to stay committed consider hiring a business coach.
When you just don’t know what to do
When you get sidetracked on your goals
When you want more success

WHY PEOPLE DO BUSINESS WITH YOU
Increase income or revenue
Increase quality of their personal or professional life – or both
Increase productivity
Decrease costs

KEEP ASKING
Who is my market?
What am I selling?
Can our company service what I sell?
How do I keep ahead of the competition?
How do I get my customers to remember me?
Why would they buy from me?
How do we keep visible?

WAYS TO INCREASE BUSINESS
Time in the business
Referrals
Up sell
Visibility
Check beliefs – do you believe you deserve to succeed?
Sponsorships or strategic partnering
Web site
Online newsletter
Free seminars
Promotional activities
Write articles for publications your target market reads
Presentations at association meetings
Press releases
Track where your business comes from if you are diversified in your marketing and advertising efforts
Get everyone into the sales and marketing attitude
Have employees give you ideas
Under promise, over deliver
Give back to the community
Become an expert the media calls on
Treat the gatekeepers like gold
Know what makes you stand apart from the competition
Get to know the competition
Build relationships
Ask for the sale when appropriate
Sell them only what they need
Keep a great attitude

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Why Bother With Business Valuation?

One of the things that most business experts almost always recommend that most companies do is to get help from a certified business valuator. You might be wondering though — is it necessary? Running a business does not come cheap, and you might think that your company cannot afford the added expense of hiring a business valuation expert. The question that you ought to ask yourself though is can you afford not to?

Numerous entrepreneur, service purchasers, business sellers and others need business valuations for a vast array of functions. Those functions range from thinking about the sale or purchase of a company to abiding by a court order to settle a legal problem. Typically, an entrepreneur just wishes to have an idea of the current worth of their organisation.

Here are a few of the reasons you might want to seek help from business valuation firms in Melbourne and Sydney :

Interest

Just as people like to check their stock portfolio from time to time, small company owners want to get an idea of their company’s worth and modifications in its value. Our valuation tool can offer you a smart sense of your business’ worth, based on your answers to numerous financial and non-financial questions. A standard valuation is free!

Buying a business and Initial Evaluation

Often, business buyers are bewildered as to how a seller gets to an asking price for his/her organisation. In some cases, the asking cost is not based on any rhyme or factor. Before getting too involved in negotiating a service acquisition, it is a good idea to determine if the asking rate remains in the ballpark. A difference of 10% to 25% (asking rate vs independent valuation) usually is bridgeable. However, if the difference is far more than 25% approximately, chances of purchaser and seller getting to an arrangement are somewhat slim.

Once it has identified that buyer and seller remain in the very same ballpark, a more official valuation will be very valuable. It is one thing to ask a seller to reduce his rate by 20%; It is quite another to reveal that seller an independent valuation that details the factors for your offer price.

The decision to offer a service rarely happens overnight, and neither needs to the preparation. The time to begin preparing for the sale of a business is 1 to 3 years before the target date of the sale. A crucial element of the preparation is an objective opinion your business’s worth. A proper valuation is essential not only for setting reasonable expectations but also to set a reasonable asking price. It is also essential because there are some definite step you can require to enhance the worth of your company and to make the sale much more comfortable and quicker if you begin the preparation beforehand.

If you are preparing to offer your organisation for sale within a year, it is indeed time to get a valuation along with a little professional assistance. Setting the wrong asking cost, and even the right asking price without documents to support it can be fatal. Also, there is a lot you can and need to do to make the business more merchandisable (and more valuable) if you do not wait up until its too late.

Taking on a New Partner or Purchasing Out a Current Partner

Keep in mind that in this context we are utilising partner to suggest any person or entity that has ownership. It can be an investor in a corporation, a member of an LLC, or a partner in the legal sense — a partner in a collaboration entity.

There is a disagreement as to the worth of one’s collaboration (or stock or subscription share) in a carefully held company. A third party valuation is the best way to reduce disagreements and arrive at a reasonable buyout (or buy-in) offer.

Raising Equity Capital or Independent Financial Investment

Professional investor along with independent financiers are very first and foremost searching for a return on their investment. While financiers comprehend that they are taking a risk, a well documented independent valuation can go a long way toward reducing the perceived threat, and towards getting you the ideal offer for the investment you need.

Estate Planning

For lots of company owner, the most significant single component of their estate is the business they own. Nevertheless, many business owners in this circumstance do not know the worth of their most crucial holding. For a myriad of factors ranging from tax preparation to guaranteeing your dreams are precisely performed without difficulty or dispute, a business valuation is necessary for appropriate estate preparation.

Estate Settlement

When a going service is a possession of an estate, a valuation is vital and often needed by a court, taxing authority, or both. Regrettably, differences are common in big deals of aspects of estate settlement, and the value of an organisation that remains on the estate is no exception. It is not uncommon that contesting celebrations will each retain valuation experts who ascribe significantly various benefits to the very same company. It is best to hire a valuation professional who has extensive experience with valuations for estate purposes and in affirming to protect his or her assessment in court.

Improve the Worth of your Organisation

There are reasonably easy steps that can enhance the value and salability of numerous, if not most organisations. The latter includes analysing business’ weakness from a buy-sell viewpoint and fixing those vulnerabilities. Some actions, for instance, are as simple as putting verbal agreements into composing or securing a lease renewal choice. Other activities take a bit more effort but can be well worth the time and money.

The place to begin is with a preliminary valuation that recognises a business’s strengths and weaknesses and the approximated cost, effort, and advantage to mitigate those weak points. We would be happy to go over the possibilities of improving your business’s worth and scalability, before putting it on the market.

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