It’s hard not to be rattled by the constant drumbeat of an imminent recession. With inflation at highs not seen in decades, fuel prices through the roof and food costs soaring, why would a small to medium-sized business be interested in investing the money and time to conduct a valuation? rancis Bacon and Thomas JeffersonF both popularized the saying “knowledge is power” and in today’s crazy world, it’s great advice.
Profitable Venture Magazine, Ltd. provides us with 10 Strategies to Help your Business Survive a Recession. Here are my top choices:
1. Maintain an eagle eye on business cash flow. In other words, be lean!
2. Increase your marketing budget.
3. Your strategic plan should focus on survival.
4. Work hard to retain your loyal and happy customers.
5. Customer service is key!
6. Lead your employees through the hard time by example.
Our business valuation service, powered by BizEquity, is a business management tool that will help you in all of the items listed above by providing you with 12 Key Performance Indicators specific to your industry. They include:
• Return on equity
• Receivables (conversion)
• Inventory turnover
• Fixed asset turnover
• Debt to equity
• Interest coverage
• Cash to debt
• Income to revenue
• Cash flow to revenue
• Pre-tax receivables to income
• Pre-tax inventory to income
• Fixed assets to income
Once completed, the Biz Equity report will unlock hidden information to improve your business in good times and bad. It’s relatively quick, easy and affordable and we do most of the work for you. Finally, as a result of completing the valuation you will receive four conclusions of value that will help if you’re planning to sell your business or are considering succession to family members or to key employees.
If you contact me by July 31 and decide that business valuation is for you, I’ll reduce our Concierge Valuation retainer fee by 25%.
With recession on the horizon can you afford not to know the strengths and weaknesses of your business?