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Knowing the value of your business is beneficial for a number of reasons, not just if you want to sell. It can help with benchmarking, planning, investing, insurance and more. Here are the top reasons why you should know the value of your business:
- Measure business growth – How do you know your business is growing without comparing the figures? The value of your business is a great way to measure and compare your annual growth.
- Be prepared for investment opportunities – If you are seeking investors for your business or opportunities for strategic partnerships arise, a business valuation can act as a resume and snapshot of your business. This will allow you to be ready for and take advantage of these opportunities.
- Ensure your insurance is correct – knowing the value of your business will also indicate whether your insurances cover is enough or if changes need to be made before it is too late.
- Planning to sell – If you are planning to sell your business in the near future or down the track, a business valuation will indicate a figure that you may expect or aim for when this time comes. You could also use this to look at any changes or improvements that could be made to increase this value.