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When asked, for most entrepreneurs, selling their business is their retirement plan. Almost 78 per cent of small business owners tend to sell their business in the process of funding their entire retirement. However, there are very few business owners who know the true value of their business. Without this knowledge, it will become impossible for the business owners to make sure that they receive the correct value while selling their business for they have worked hard to build it. Planning for retirement is counted as the most essential long-term commitment.Small business owners do not seem save for their retirement, instead they believe in reinvesting the money in their business. Even though there are a lot of business owners who plan to fund their retirement by selling off their business, there are almost 72 per cent of business owners who do not seem to have an accurate exit plan. While they sit to plan for their retirement, they tend to take either of the two ways:
No matter what way business owners opt to take, what play the vital role is knowing the true value of the business. This will help them in negotiating the amount and know the set of potential buyers. Also, it will help in increasing the chances of realising the maximum value of your business. Valuations tends to form the most essential exit criteria, allowing the owners to make a more realistic, well-informed and profitable decisions in all the successful stages of the business lifecycle. If business owners seem to not know the true value of their business, they might miss onto some opportunities such as:
However, being engaged in the process of calculate the valuation is usually an expensive and a time-consuming process. Because of this reason, business owners tend to avoid it or some of them find it to be uncomfortable. Thanking the advance technology like big data, it is now comfortable and easy for the business owners to obtain an accurate and reliable online valuation. This allows them to take their decisions more clearly which otherwise would have been vague.
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AuthorEmily ArchivesCategories |