The Financial Times and Canada.com are at it again and has published a compelling�article�titled “Working out what your firm is worth”��for small business owners and their need to conduct recurring business appraisals.� While some businesses do not need annual appraisals, most privately owned companies do need one at some point in its existence.  It is very common for an owner to grossly over value their business based on the blood, sweat & tears they’ve invested over the years to get to where they are today.� While sweat equity is valuable, there are specific indicators a valuator will examine in order to determine “fair market value” of a small business.  A key factor for�the business valuation is what is expected to happen in the future when the existing owner is removed from the equation?� If a small business is heavily dependent on that owner’s reputation, expertise & services it could have a negative influence on future financial successes; thus�devaluing such a business.

If you or your company has any business interests that tie into internet marketing and the promotion of your website, then you need to hop on over to Andy Beal’s www.MarketingPilgrim.com.  On a daily basis, you can expect to find a combination of internet marketing news stories, useful tips, and some strong opinions on an assortment of relevant topics.  We have been following Andy Beal’s thoughts and opinions on internet marketing well before the launch of Marketing Pilgrim, tracing back to his days at Search Engine Lowdown; so take it from us, he knows his stuff and will give some great insight beyond mere facts & rehashed news stories.

As a business owner, do you have a succession plan?  If you answered no, please take a moment to read this fantastic article which was featured on Canada.com. 

In a nutshell, this piece emphasizes the importance of succession planning and business valuation when the unexpected illness or death of a business owner takes place.  In the example used, the owner’s wife was left to keep the business affairs in order amidst competitors trying to buy it for pennies on the dollar once the owner passed accompanied by a number of other stressful events.  A business valuation became a life saver to this company and the heirs of the previous owner’s estate.