How Much Is All My Hard Work Worth?
Owning and running your own Arizona business is time consuming, exhausting, takes a lot of energy, work and knowledge, but if done right, it can be one of the most rewarding and fun things you will ever do.
And I am speaking from experience. I have not always been a business broker. In fact, before I became a business broker, I owned several businesses of my own. Late one night after putting in a 14-hour day at my last business, First Impression Security Doors, I asked myself the question. How much is all my hard work worth? And is it actually worth it at all?
My partner and I had been working hard for over five years building up our business and I wondered what all our hard work was worth and how much our work would be worth if we were to sell our business.
Sentimental value aside, I asked my partner if she would consider selling our business if we could get the right price. She said sure.
Our first step was to find out what our company was worth. Since we had no idea how to value our business, we decided to call a professional. We contacted a Business Broker and set up a consultation to discuss our idea of selling the business and to see how much we could sell it for.
The business broker conducted a thorough business valuation which included reviewing our last three years of profit & loss statements, last three years of business tax returns, our inventory and a comprehensive list of our furniture and equipment. He also toured our manufacturing facility and sat down with us to discuss business practices, methods of operating and other pertinent information to give him a good idea of how our business worked and how profitable it was and would remain.
Pricing a business can be very tricky and we knew it was essential to work with an experienced business broker so our business wouldn’t be overpriced and fail to sell or be underpriced, which may ensure a quick sale, but essentially deprive us of money that should have been ours.
After the business broker gave us a valuation, we decided to go ahead and sell.
We hired a Business Broker to handle the sale because we wanted to make sure the sale was done right. We feel we made the right choice because he found a buyer within three weeks of listing our business and made a complicated process go a lot smoother.
He taught us a lot about selling a business and avoiding pitfalls in the process.
Of course, it is also important to time the sale properly based on current market trends. During an economic downturn, the chances of selling a business are much lower than they are during an economic upswing.
Most sellers have a hard time keeping their personal feelings out of the business sale. This is understandable because selling a business you have built from the ground up and that you have spent hours and hours on making it grow and prosper is deeply personal and emotional. Unfortunately, buyers don’t pay extra for all the blood, sweat and tears you put into your business nor can you factor it in your business valuation. In the end, the bottom line profit is the most important factor to them.
So how much was all my hard work worth? Enough to make selling it worth it and to give me something even more valuable. It gave me the freedom to do what I wanted to do and to take some time off and figure out what I wanted to do for the next chapter of my life.
During this time off, I decided to start a new venture. Because I was so impressed with how efficiently the Broker had handled the sale of our business and his thorough knowledge in the matter. I decided to become a Phoenix Business Broker myself so I can help other entrepreneurs realize their dreams.
Since 2001, I have been committed to helping other business owners get the same kind of service I received when I sold my company.
Do you want to know how much all your hard work is worth? Are you interested in having a valuation done on your business in order to determine if selling your business might be a financially smart move? I can help.
If you are ready to sell your Arizona Business or would just like to find out how much your business is worth, contact me at 480-707-7721 or firstname.lastname@example.org to see if your business qualifies for a Free No-Obligation Business Valuation.
Written By: Phil Reese
Phil Reese – Arizona Business Broker
7077 E. Marilyn Road, Bldg. 4 Suite 130
Scottsdale, AZ 85254