How to Measure Your Business Value
It’s a new month, and we are so excited for Summertime! With that, it’s about time to stop and measure the value of your business. You’re confident in the worth of your business, but you’re not too sure about what business value is or what to “measure” to find out. From its profitability to the size & engagement of your market, there can be many things to look at to truly know what the value of your business is.
Take a look below to see how you can start to measure the value of your business!
Pretend Like You’re Selling Your Biz
Whether you are or not, this is the best way to get in the mindset of “what is my business worth” and “if I were buying it, what would I be looking at”? As mentioned before, there are many things to look at, but the best thing to start with is its revenue & profitability. It’s time to break out the books and ask yourself some questions. Things to look at in the books and questions to ask: your number of sales since you started, your number of sales per month, your profit from those sales per month, and your estimate of future monthly sales.
What Do You Have to Give (Other than Profits)
There is much more value to a business other than its monetary profits. Don’t get us wrong, profitability is essential for obvious reasons but doesn’t stop your measurement there. Again, if someone was looking to buy your business, they might want to know what else could be thrown into the “package,” if you will. What’s the size of your inventory? What’s your current clientele state? Do you have all of the needed equipment? These are all (somewhat) “purchasable” things that are a part of your business value.
Social Media Has Become a Thing
It really has. So much, so that including your social media reach into your business value is crucial. While social media is an absolute blessing to small businesses and entrepreneurs, it’s something that you’ve put your blood, sweat, and tears into really to make it work for you. Most likely, you’ve utilized it to turn your audience into a profitable target market. When measuring your business value, taking a look at your social media reach and metrics is just as important as your books. Questions to ask and things to look at: website and social page analytics, social media-driven customers, engagement rates (daily, weekly, monthly), campaign successes & metrics, which social media pages receive the most reach, and whether or not utilizing social media is profitable of your time.
If that was a lot to take in, we are right there with you! Measuring your business value might seem daunting and impossible to make time for, but we promise that it’ll be worth it in the long run, especially if you do decide to sell it or someone comes to you with interest of buying it. Keep this in mind when working with your books on a monthly basis and don’t let it trip you up. It’s likely that you’ll be pleasantly surprised with the results!
Have you measured your business value before? If so, let us know the processes you went through in the comments below!