Are you looking to expand your business or improve its current financial outlook? Consider looking into business appraisal services. A successful business isn’t a one-person job and the most efficient ventures find themselves dipping into multiple pools and making the most out of the resources available to them. With business valuation you can see how your brand is faring in the competitive marketplace, what you need to keep in mind when organizing your income and the next steps you should be taking to continue increasing your capital. With small businesses almost singlehandedly supporting the American economy these days, small business valuations and appraisal services are quickly becoming the go-to option for savvy entrepreneurs. Let’s take a look at how they look and what they have to offer.
How Many Businesses Are There?
Let’s start off with the current American economy. It’s estimated there are over 26 million American businesses, with five million firms with employees and 20 million without. A whopping 99% of businesses in the United States have fewer than 500 employees — those that exceed that amount are government-owned, enterprises or corporations. Small businesses and freelancers are rising in popularity due to their more stable environments and flexibility in the job market, providing workers and customers alike with options they may not find elsewhere.
How Are Businesses Faring?
Small businesses have been thriving as of late, thanks in no small part to valuation market approaches and widely available online resources. Surveys have shown over 500,000 new businesses getting started every month, but more employer businesses shut down than start each month on average. Seven out of 10 new employer firms will survive at least two years, while half will go five years strong and a third at least 10 years before shutting down entirely. Only a quarter manage past 15 years, with many delving into their secrets of success to better help those trying to follow in their footsteps.
What Is A Business Valuation?
If you want to get a better idea as to how your business is holding up in a competitive market, getting a business valuation should be high on your priority list. A business valuation is largely an economic exercise, used for analytical and financial purposes by business leaders and resource directors alike. The two most important statements you’ll need for a business valuation are your income statements and your balance sheets — to get a proper value on your business you should have at least three years of historic income statements and balances, if not more. Additional information, such as marketing budgets or public resource management, should be considered to encourage a more full picture. All this and more will help you figure out how your business holds up competitively.
How Is My Business Doing?
Want to see how your business stacks up? Use a comparable transaction for similar industries. It’s important to remember that a business valuation is just a tool. A business’ value isn’t absolute, after all, and many ongoing or temporary factors can contribute to changing the outlook of your brand. It’s simply used to measure worth over a lengthy period of time through consistent financial patterns. By using comparisons to recent sales of similar businesses, you can better ass your business’ earning power and risk assessment based on your already existing assets. Next time you’re considering how you could improve your firm, consider applying for a business valuation report. The answers you’ve been seeking could be right under your nose!