Business Valuation is the next great frontier for cloud software and the key knowledge needed by all Small Business
Michael M. Carter
The recent article entitled “Small-Business Guide: Do You Know What Your Business Is Worth? You Should” (http://www.nytimes.com/2013/01/31/business/smallbusiness/valuing-a-small-business-in-advance-with-cloud-software.html?_r=0) by the New York Times laid out many of the important reasons why Small Businesses need to start with knowing what their business is worth.
We believe the biggest challenge and opportunity for wealth creation for the small business owner, entrepreneur, economy, and GDP growth over the next 10 years will be in democratizing business valuation knowledge for the business owner.
“7.7 million businesses will change hands the next 10 years representing nearly 10 trillion dollars in potential real economy dollars.”
But 75% of all business owners do not know what their business is worth.
The average acquisition multiple (that is the amount paid for a company based upon industry comparable multiple of earnings of a business) was over 11 times for a public company and less than 50% of the amount for the small business in America.
This is a problem for the small business owner. This is a function of access and money. Access because there was not an easy way and timely way to get business valuation knowledge. Money because the average price of a business valuation is $8,000.00.
Small business owners on Main Street are at a disadvantage. The larger companies acquiring these businesses know the value of what they are buying and have access to capital to do so. For the small business owner, this is their pensions and livelihoods. Baby boomers who are selling their business need to have knowledge of their business valuation democratized.
At BizEquity, we believe this is a right, not a privilege. After 4 years and millions of dollars, our mission to help democratize this knowledge is being accomplished. We have built the best team in the market with the former COO of the AICPA, Clarence Davis (the association who rights valuation standards) as our Chairman, and author and practitioner of over 2,000 valuations, Scott Gabehart, as our head of valuation support and services. Over 100,000 businesses have found and used our service.
We have built a platform and service with a free calculation of value based upon the real way small business owners run their businesses from a tax efficiency standpoint. We handle over 15,000 industry categories and aliases. We produce for just $365.00 per year for unlimited business valuation knowledge and comparable dashboard metrics about your business in real-time. We provide 4 valuations based upon what the business owner needs to do (Buy; Sell; Protect; or Optimize and raise capital) and we provide 40 key performance indicators of how their business compares to 17million other business in America.
For us at BizEquity, business valuation is core not a contextual feature to our service.
BizEquity, business valuation is a right, not a privilege. It is a platform and service, not a plug-in.
Business valuation is a serious business and is the on-ramp to all other questions business owners need to answer and need to know.
You can try it for free today at www.BizEquity.com