Regular business appraisals provide vital health checks for businesses. Just as a health checkup helps assess our wellbeing, an appraisal provides a snapshot of business fitness.
While it’s natural to associate appraisals with preparing for a sale, they offer much more. They provide an opportunity to pause, take an objective look at a business and gain insights, whether you’re thinking about selling or not.
For many business owners, day-to-day demands of running a business can make it hard to step back and reflect. A business appraisal encourages you to do just that. Here’s why they are worth considering:
Market value
An appraisal provides clarity about your business’ current market value. It considers market conditions, financial performance and industry trends to deliver a realistic picture of where your business stands.
This isn’t just about selling; it’s about knowing your position and identifying opportunities to strengthen your business or plan for future milestones.
Objectivity
When you’re immersed in daily operations, it’s easy to lose sight of the bigger picture. The appraisal process ensures you stop and review key aspects of your business, from financial performance to customer diversification and operational efficiency.
A fresh perspective can help you spot areas for improvement or opportunities that may have been overlooked during the hustle of daily tasks.
Tracking performance
Regular appraisals provide a benchmark for tracking progress. By comparing the results year-on-year, it should become clear how the business has evolved so you can measure the effectiveness of your strategies. For example, if you’ve introduced new services or streamlined operations, an appraisal can show how changes have impacted value.
Be prepared!
While selling may not be on your mind today, circumstances can change unexpectedly. Whether due to health issues, market shifts, or an unsolicited offer, an up-to-date appraisal ensures you’re ready to make informed decisions.
The process can also uncover risks you may not have considered. For example, if too much of revenue is reliant on a few key clients, work on diversifying to protect your business’ long term health.
Clarity, peace of mind
Knowing a business’ value provides a sense of control, allowing you to plan for the future with confidence and make decisions based on clear, accurate information rather than assumptions.
Expert advice
As a business broker with LINK Bay of Plenty, I offer free, no obligation market appraisals to help business owners better understand their positions. This is not about selling; it’s about empowering you with the knowledge you’ll need.
Whether it’s been a while since your last assessment or you’ve never had an appraisal, the process offers a chance to step back, reflect and refocus. It’s about taking stock, identifying opportunities and ensuring your business is on the right path, whatever your future plans may be.
So, why wait? A business appraisal is an investment in understanding your business better today so you can make more informed decisions tomorrow.
For more information, contact me on 021 0242 2978 or LINK Business BOP, 0800 546 528.
