Business valuation is critical for all small business owners as there is a high probability that you will be needing to evaluate how much your business is worth due to needing a loan, going through a divorce, or selling your business either voluntarily or involuntarily.
When it comes down to it, the value of your business is the price that someone is actually willing to pay you for it. But if you are trying to put a dollar value on your business without this step or before this step, there are some things to consider;
1. Net tangible assets
2. Identifiable intangibles
3. Goodwill (transitioned and non transitioned)
4. Redundant assets
If you are selling your business, there are some great ways to increase the value of your small business. And there are some specific value drivers to be aware of.
If you are buying a business, there are some specific details you should be looking for and specific circumstances where you may buy a small business for a lesser amount.
Your small business exit strategy is one of the most important parts of running your business.
The reality is, if you want money quickly it is better to get a job than start a small business. Starting a small business helps you in the long run financially as you are building equity and value in your business year over year.
But the only way to get this equity and value out of the business is having a solid exit strategy that allows you to realize this.
There are 6 major exit strategies to consider;
1. Getting the most out your business now.
2. Liquidating your business which means selling all of your assets.
3. Selling your business to someone you know.
4. Being acquired by another business for a strategic reason.
5. Issuing shares publically and getting out of the business.
6. Create a family empire with a solid succession plan.
One of these should be selected and planned for. The video walks through these strategies, gives examples of how it has worked, and highlights the top tip for each exit strategy that you should be focusing on.
Large businesses and small business alike use performance metrics with the intent to motivate their employees. However often these metrics are misguided and resulting in undesirable behaviour. They are not tied to the strategic performance of the organization.
In this video learn…
1. Why have metrics?
2. How to create your metrics that will actually help your business
3. Understand what a balanced scorecard is and what components make up a small business’ balanced scorecard
4. Learn how to monitor and implement the metrics in the most effective and efficient way possible
There are a lot of red flags when it comes to metrics, and if done improperly a metric can actually stunt your business’ growth rather than foster it.
Always remember that what gets measured will get done!
It is currently a $600 billion dollar industry in Canada and the United States, with over 630 million active websites. Plus it is still growing at a massive rate of 47% annually over the last 12 years.
iDeal Advisor presents this topic with the idea of focusing on conversion rates, reducing abandonment rates, and increasing the value of your website through traffic and revenue. Throughout the video, topics are covered to help you with these three goals.
First it covers that a good landing page is critical. It needs to have;
1. Your logo, images, and branding
2. You need great copy and design pieces.
3. You need a headline that is catchy and simple.
4. A brief body of copy that is succinct and clear.
6. A call to action. What do you want the visitor coming to your site to DO.
Second there is the new SEO (search engine optimization)
1. fresh content
2. social media
3. media releases
You can’t improve what you can’t measure. So make sure that you are using Google Analytics to understand your unique visitors, abandon rates, and conversion rates.
And finally, you need a way to nurture the leads. How do you get conversion from returning visitors or individuals who left your site.
Growing your business is something that most entrepreneurs strive to do. They want to grow their business to help increase their profit, grow the value of their business to sell it at a later date, they want to hire more people, they want to help the community, they want to build something for their family, they are competitive, they never quit, and there are many other personal reasons.
Regardless, most small business owners are looking for ways to grow. The two that often come to mind is to grow outside of your geographical location and expand the size of the market or to create a new product. But there are a ton of other strategies to growing a business and many examples to follow. Click on the image to see them.
Watch this 30 minute video to find out;
– 12 small business growth strategies
– examples of businesses that used these strategies and how it worked for them
– draw out key takeways and ideas to use for each strategy
Expert’s Contact Information
Small Business Consultant
85-95% of New Product Launches fail annually (FORBES article of March 24, 2010 based on approx. 250,000 global launches).
With this daunting figure, we want to do everything right to increase our product’s chance of success. Learn from the expert, Kevin Scanlan, who has over 30 years experience in new product development with enterprises and small business.
In this 30 minute video, you will learn:
– what invention is versus product development
– the importance of a roadmap and the process
– how to scan the environment
– the QUAD approach and the 4 different types of product development
– the components of a product specification
– the Gate process used by the most successful companies out there
– red flags and things to look for during the process
Plus, if you have any other questions you can always contact our expert.
Test whether or not your business will fly by going through the idea tester’s funnel.
This 30 minute session is delivered by Small Business Solver co-founder and the author of “Will It Fly? The Idea Tester”, Carla Langhorst. It will give you a solid process to evaluate quickly any great idea that you have. If you have a new product, service, or business, this is for you!
The process has been tested on 1000s of small business ideas and has been used by small business coaches throughout North America as a guide to highlight red flags in a business model.
Top questions that will be answered:
1. Will people buy your product?
2. Is it better than the competition?
3. Will you burnout?
4. Are your salary expectations reasonable?
5. Will you end up working more than you are intending?
What makes a non profit? What makes a social enterprise? What is social entrepreneurship?
These are the first pieces to understand within selecting if your organization will be for profit, non profit, or social enterprise. Knowing the difference and knowing where you fit can be powerful.
Being a social enterprise can have a huge advantage to your organization as your employees are proud of where they work, your values are a guiding light and part of the vision which helps you move forward.
Just as important as figuring out how a social enterprise is different than other organizations, there are a lot of similarities. Specifically, just because you have a mission doesn’t mean that you can forget about profit. You still need to start with your customer and client needs, then build out what business model makes sense for you.
Co-Founder and Partner, Venture Deli
Course Director, Social Entrepreneurship | Schulich School of Business | University of Toronto Faculty of Applied Engineering | U Waterloo Faculty of Environment
(416) 624 8349
Customer service is the backbone of customer retention and customer loyalty. Customer retention is the backbone of increasing your revenue year over year.
This webinar will walk through the basics that you need to know about customer service and what you should know NOT to do.
Customer Service for Products
If you are selling a product, here are your customer service metrics.
1. Available products: do you actually have the product that they want on the shelf or in stock? Think about Chapters/Indigo, and the fact that you can order books on computers in store or find out physical stores where.
2. On time delivery: think about anything that you’ve ordered online and if it is close to when you need the gift, let’s say Christmas, they have a cut off online when they can get it to you by. If they missed the date, you’d be upset!
3. Zero defects: Do you buy your new pair of jeans with a hole in it (that wasn’t for fashion?) How upset are you about having to exchange it. Sometimes you’ll simply return it as you are that upset. Or you may simply never buy from that store again.
4. Meets customer specifications: If you want something custom, like ordering a custom suit. If it comes to you with pink thread and you expected black, you might be a little upset.
5. Amazes customers: This is the extra step. Is there something unexpected like a thank you card? A bonus gift? A loyalty card? For the suit example, maybe they threw in a tie?
Customer Service for Services
If you are selling a service, it is tougher as it is intangible. Here are your metrics;
1. Proximity to customers. Location, location, location becomes increasingly important for many services. It is less likely that someone will go to a salon across town or in another town, than down the street. That’s why franchises make so much sense. You love the product/service, but you simply aren’t willing to make the trek. So they bring it to you.
2. Zero wait time. How often have you gone to Tim Horton’s or Starbucks, and decided to wait on your coffee because the wait was too long. That is part of customer service. Both of them ended up changing their processes and adopting payment cards to save time. You might have even seen the Mastercard advertising about their PayPass program that has saved millions of minutes of time. It is the wait time in customer service of why this is sooooo important.
3. Consistent delivery. Services are trickier, as it is easy to provide great customer service as a single owner/operator of a business. But if you plan on scaling up, this will become more and more challenging. Maybe get your new employees to watch the recording of this video to start understanding the bigger perspective of customer service.
Part of this is understanding your process, and writing it down. That helps to train your employees as well as to improve upon what you are doing.
4. No mistakes in the delivery or unexpected interference. Mistakes happen! At Tim Horton’s I always order Steeped Tea. But I often get coffee instead as they might not have heard me with the noise or it was assumed. Another problem is sometimes the customer makes mistakes! They were talking about mistakes at Tim Horton’s the other day on the radio. One of the stories was about a woman talking on her phone while going through drive through. Apparently she heard the order taker speaking to the car ahead of her, and she ended up giving her order to a garbage can rather than to the order taker. When she got to getting her order, it obviously wasn’t ready for her. She was overheard saying on the phone “they got my order wrong again!”. This is a classic case of the customer not always being right.
5. Meets customer expectations. Services are tougher, as often the customer doesn’t know what to expect. Think about your last hair cut, and explaining that you just want a trim. You don’t know until your hair cut is done if it compares to your expectations.
6. Amazes customers. One of my best examples is at a nail salon I once went to. They ended up giving me a 5 minute massage while my nails dried. Completely unexpected and appreciated!
From here you need to know the best practices where are;
1. Managing expectations
2. Being fair and equitable with all of your customers
4. Over communicating
5. Recovering from mistakes
6. Mass customization
The subject matter expert was Carla Langhorst, the President of Small Business Solver. You can reach her at email@example.com