Small Business Valuations — How They’re Helping Main Street America
Mar 30 2016
Most people aren’t too aware of exactly how many businesses there are in the United States, or how big they are. All we really ever hear about on television is how businesses are overwhelmingly preferring to do business overseas, and are increasingly opting to build their operations on foreign soil.
While this is true in specific cases, there are actually a very large number of businesses operating in the United States today. By our own standards, many of them are “small businesses,” or businesses with less than 500 employees.
If somebody asked you to guess what percentage of American businesses were considered small businesses, keeping the above metric in mind, what would your guess be? Half of them? A quarter of them? The actual number is 99.7% — much higher than most tend to guess.
With that relatively small amount of employees (compared to some of the big corporations out there today), small businesses aren’t generally able to support a team dedicated to assessing asset valuation and earning potential. It’s a difficult and tedious figure to accurately determine, and that has historically prevented businesses from operating with a complete knowledge of their exact positioning in the business world.
Thankfully, those days are over. Business appraisal services are quite popular now, and have left the days of guessing or devoting hundreds of hours of labor into calculating your business comps long in the past.
All a business needs to get started today is a working understanding of why they need or want a business valuation — usually easy enough to come up with — and all the required pieces of the puzzle that valuation software needs in order to produce a figure.
Once this has been done, a valuation can take place. Small business valuations are so accurate, and the algorithms at play so sophisticated, that the very need of your business for a valuation affects the final outcome of the report. Alongside this, they’re known to measure how your business measures value, and under what circumstances.
Your business deserves a business valuation report. Don’t delay in having small business valuations experts look at your organization.