Business Owners are consumed with their daily activities of running
their company. The daily battle often prevents owners from finding the time to
plan. This lack of planning often hinders the owner’s ability to grow and
operate the company in the most efficient way.
Even though Business Plans are created and implemented usually they
are not aligned or coordinated with the owner’s personal financial goals. Many
times we have seen business owner’s sale their business for substantially less
than what they originally plan for, thus creating a retirement hardship. This
is a real problem that is often overlooked until it’s too late.
At CORE Business Advisors we have seen and experienced this
unfortunate situation. That’s why we have created an integrated planning
framework to provide business owners a systematic approach to building value in
their business. This proprietary process called, “Value Building” recognizes
three (3) components to increase your business value. People, Assets and
Processes are the drivers of profit and profit increases value. By
understanding each of these components and their impact on value we can better
create, understand and implement a strategic plan that is aligned with the
business owner’s future selling price and exit strategy.
Here are two powerful scenarios on how to utilize “Value Builders”:
· Some companies after evaluation are not ready
for sale at the price and terms the owner desires. This process provides a
great way to determine what the company’s value is and what it needs to
accomplish to obtain the desired exit price.
· The process can be used as a coordinated
planning and monitoring tool for the business owner who may have a 3, 5, 7 or
10 year time horizon in selling their company.
