During this episode, we’ll walk you through how to look at your business with fresh eyes. Like you were BUYING a struggling or stagnant business, not running it.
This kind of “outside” perspective can reveal both personal and professional areas for potential growth and lead to a better business.
The basic premise is that everything you do to make your business more attractive to a Buyer will be better for your business!
First: Getting ready to “Sell” your business – because in order to really evaluate where your business is and how it’s doing, you have to pretend you’re selling:
- Prepare your financials – What are those? An income statement, cash flow report and balance sheet.
- How much money you make, what cash in and out look like every month and what you own vs what you owe.
- Gather 3 years of income tax filings if you’re a sole proprietor especially. But even if not – do that because of what we’ll discuss below.
- Figure your asset value – What does your company own, and what is that worth? Equipment, inventory, those are easy – the value of any contracts is the tough part.
- Research “comps” in the industry. Try and find other businesses in your niche or area that have sold recently to get an idea what it might be worth.
This process should be pretty enlightening.
Some of you have found out that your business literally makes NO MONEY. When you do your financials, or better yet have them done by a pro, it could turn out that you’re working your butt off just in order to pay your mortgage.
Others may be shocked at the idea that on paper you’ve made a LOT of money, but as you pick through your bank accounts you can’t find any evidence of that. It still feels like your struggling.
There is a lot more to learn about this.
Read more about this in Mark’s full article here: https://coldesi.com/2020/06/t-shirt-business-turnaround-start-here/