Download - Business Development | Business Valuation
BY COLIN RITCHIE
Business Development
Helping Small Business Owners To Unlock the Profit They Deserve
Business Development, Business Valuation, Profit Improvement, Business Leverage
Disclaimer
Business Development, Business Valuation, Profit Improvement, Business Leverage
Any figures provided in this presentation are an example only and in no way professes to be a valuation of your
business or to be the correct methodology to value it .
To get a business valuation you should consult a suitably qualified professional
Business valuation
Businesses values are usually valued based on future
profitability Business Development, Business Valuation, Profit Improvement, Business Leverage
Business Valuation
Total Business Profit = Salary + Return on Investment
( ROI)
Business Development, Business Valuation, Profit Improvement, Business Leverage
Value of a Business
ROI X Payback Period = Business Value
Business Development, Business Valuation, Profit Improvement, Business Leverage
Example
Your Business
Sales$500,000Cost of Sales $300,000Gross Profit $200,000
Less: Overheads$120,000
Profit $80,000Business Development, Business Valuation, Profit Improvement, Business Leverage
Example
Business Profit $80,000
Less: Owners Salary$50,000
Return on Investment $30,000
Pay back period 4 years
Value of Business $120,000
Business Development, Business Valuation, Profit Improvement, Business Leverage
Example Increase Sales by 10%
Your Business Before Lift by 10%
Sales $500,000$550,000Cost of Sales $300,000 $330,000Gross Profit $200,000 $220,000
Less: Overheads $120,000$120,000
Profit $80,000 $100,000Business Development, Business Valuation, Profit Improvement, Business Leverage
Example
Your Business Before After
Business Profit $80,000$100,000
Less: Owners Salary $50,000$50,000
Return on Investment $30,000 $50,000
Pay back period 4 years 4 years
Value of Business $120,000$200,000Extra Business Value $80,000Business Development, Business Valuation, Profit Improvement, Business Leverage
Example
In this case:
10% extra sales = 40% extra business valuation
Business Development, Business Valuation, Profit Improvement, Business Leverage
The Power of Leverage
Earn the extra profit and get paid multiple times
How does that sound?
Business Development, Business Valuation, Profit Improvement, Business Leverage
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Business Development, Business Valuation, Profit Improvement, Business Leverage
