Most programmers, website gurus and internet wiz kids fall into a common trap;  focusing totally on getting sales and ranking. They end up with putting a lot of time and energy into a great idea and then little if nothing left in three to six months but some code.  If they would only start with the end in mind.  Savvy business buyers learn to use equity early-on for building wealth.

Following the principles and  rules of business value keeps you away from this common trap.   Most online programs and courses out there teach sales and marketing.  Maybe you will make some money from one of the online coaching or webinars programs.  But in the long run, applying real rules of business value you will not be where you started but have a business.

Take your first step for online success by building a business not just a website.  You’ll find in the introduction of “14 Unalterable Laws of Business Value” ways to stay away from the trap. <a href= “http://www.growthconcepts.org/index.php/2011/08/ideal-business-model/”>Click for a guide for newbies and seasoned webexperts to focus on what is real-equity.</a>

A constant reminder rings in the ears of Business Owners, “What is my company worth?” Typically this is ignored until a disaster takes place where the owner is forced to sell. There are rarely any resources that point them towards specific value plans.  Yet alone a business value expert that does not want to sell your business(Appraiser).

Having the opportunity to do value planning many times over the years,  actual “worth” is only one part of the business value puzzle so I’ll assume you have a detailed earnings move within a value plan and know the attributes of a new value strategy that would lead to be successful.  If not we offer a complimentary review to start working towards this.

Often we recommend two strategies working together within a business value plan. An earnings move is based on the least effort and cost for the most return of business value. While the communication strategy(branding and short-term messaging) is for immediate gross profit results but has a higher up-front expense and demands more detailed measurements of tasks performed and provides for less business value if successful. The business value plan has a much higher return rate and much lower initial costs while offering to make a stronger business. You take your pick or combine them.

You should be able to find industry data on business value ranges for your type of business. A Business Broker or Appraiser might give you an income approach value or a multiple of EBITADA(usually around 3) but you should have a strategy for your position in a range from high to low. This should reflect your image in the industry and core business value strategy.

Finally, Business Owners’ usually work on productivity or sales moves that do not effect business value. If you earn one dollar in sales profit that usually increases business value about three dollars. Look at how much a similar business would have to do to sell vs. earn and then calculate how much value that generates. Don’t forget the savvy business buyer that uses discretionary and nondiscretionary (EBITADA depends on discretionary cash) cash allotments looking forward to really visualize the potential of the business. And if she/hey could afford to pay what the Owner is asking while comparing that to industry norms. This will help you understand business value and if what you are trying to obtain as a price is too low, too high or just right for your specific situation(that is why we use value metrics).  As for a complimentary review of your particular situation.

This is probably an exciting time for your business. Congratulations on taking a leap forward looking towards business value.