Do you have an idea of what your business is worth in your head? Have you tried to raise money or sell your business recently and been surprised at the results? Sometimes it is hard to realize that a business that you have given your blood, sweat and tears to is not worth what you think to a potential buyer or to others who you have asked to invest. There are many reasons why this could be the case.
A fundamental reason that a business is sometimes turned down for purchase or investment is because of the lack of the owner to truly articulate the business and the value to others.
Do you have a business plan that outlines what products you sell or manufacture?
Have you been able to explain the size of that market you sell and what percentage of the market you have?
Who is your target market, and in what geographic regions do you sell your products?
Who are your competitors?
How do your competitors compare in size to your company?
What are your company and product differentiators? Do you have a product road map?
Have you made enhancements to keep the product current? Do you have plans to expand?
What profit has been made over the last five years on sales and is there an upward trend year over year?
Is the market you are selling into growing or is it in decline?
Are there other vertical markets that you could address?
What is the length of your sales cycle?
What sales channels are you currently using?
Have you considered expanding your channels?
What marketing mediums are you currently using to help sustain and grow your business?
Are you considering others?
Are your products easy to sell or do you need specialized training?
If something happened to you or any of your employees, would the business be sustainable, or is the business built around you or your development team?