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Building Your Business With A Purpose

Building my business has been a fun yet challenging journey. My Business journey began in 1998 and 15 years later, I have discovered that the only way to build a successful business is with a Purpose. In fact, I believe that a business without a purpose is a business that is destined to fail.

When I wrote my business plan, it was written with my purpose in mind and that was, “To provide High Quality Childcare.” In fact, my purpose was the glue that held the business plan together. Moreover, as I completed each section of the business plan, it was completed with my purpose in mind.

Building a Business on purpose, takes lot of planning, lots of energy and lots of focus. Most importantly, you must be willing to persevere… no matter what comes your way. Adversity seems to attach itself to every business with a purpose; however, you must stay focused and stay the course.

I must say, it is an awesome feeling to write the purpose for your business and see it in action! Are you ready to build to discover how to build a business with a Purpose? Today I am going to share with you some of the strategies that I used to build my business on purpose.

A business without a purpose is like playing basket ball without a ‘Rim”… it’s pointless!

  1. Master Your Time. You must take some time at the beginning of every week and make a list of your business priorities. Be sure to add your most important duties at the top of the list. Delegate time wasters. As you do this… You will develop a sense of accomplishment for every week. Moreover you will become a master of your time.
  2. Personal Development. If you are not growing as an individual, your business will suffer or if you have character flaws, it will show and could even destroy your business. I recommend that you read a personal development book 2-3 times a year, so that you are able to develop a mindset that will sustain not destroy your success.
  3. Master Your Money. You must have a plan for how you will spend the money that comes into and leaves your business! Money is the life line of your business and you must learn how to manage it well. Only buy what you need, invest in your business on a regular basis and keep a close eye on your money.
  4. Business Associates. Hang around other successful business owners. In fact, get an Accountability partner; someone who will hold you accountable for your business success. If you are hanging around millionaires… you will begin to think like, talk like, look like and eventually become, “A Millionaire.”
  5. Evaluation system. Be sure to create an evaluation system for your business, to evaluate if you are really operating based on your purpose or if you are even accomplishing your business “mission.” As you evaluate your business, keep this in mind; Only use methods and systems that are working for you and stop doing what is not working.
  6. Take some time for you! After working 5-6 days a week on building your business; take some time for you. I find that, the more rest that I get; the more productive I am on Monday morning. Also, plan to travel! I believe that travel is a great way to spark your creativity and give you new ideas for your business!

I challenge you to take a moment to reflect on the purpose of your business? Your purpose is your “why”; it is the reason you are in business, so be sure to never stop building your business with a purpose. In fact, as you focus on building your business with a purpose; you will attract to you what you need for your business and what you need for the business will come to you sooner than you think it will!

How to Price a Business Using Business Valuation Techniques

When selling your business, or any business for that matter, the primary question should be focused on the value of the business. Business valuation techniques can range in complexity from a simple calculation that gives you ballpark figure to one that evaluates tangible and intangible factors to produce a more in-depth result.

Unfortunately, there is no standard business valuation formula that will work for all business types and circumstances. And, there is no generally approved ‘right way’ to arrive at an accurate business valuation. Accountants may view the figures one way while business brokers will evaluate based on a wider set of criteria. The difference is that accountants focus primarily on the books, while a good NJ business brokers will conduct in-depth research and use that data as a context in which to examine the numbers.

For example, a common business valuation technique includes calculating the set-up and entry cost of a new business. Factors like promotion, hiring and hard goods have to be forecast, along with the cost of competitive entry into an established market. Depending on how steep the competition is, the cost to build a new brand can be quite high.

Common business valuation techniques include:

  • Market-based valuations:frequently used by brokers, these and are based valuations are based on broker experiences selling similar entities. The broker may suggest a price based on the sale prices of other businesses in the same, industry. While not a terribly accurate business valuation method to it is common for the sale of smaller businesses.
  • Earnings-based valuation:here a business broker will consider hitstorical financial figures, debt payments, cash flows past, present, and projected, and revenue. These valuations are often combined with asset-based valuations to arrive at a more accurate figure.
  • Asset-based valuations:address figures like the book value and liquidation. Brokers consider these to be the bare minimum values and are not generally used singularly.

Determining a value for fixed and intangible assets is an essential step that has an enormous margin for error left in unqualified hands. to perform a business appraisal valuation to help determine how to price a business. The business valuation technique of estimating the value of fixed assets is fairly straightforward.

ManyNew Jersey area business brokers will do this for you, but you can get a general idea by doing it yourself. The estimate should be based on the real market value of all physical assets in the sale. Fixed assets include items like stock, machinery, property and any other tangible ‘object’

When dealing with intangible assets it’s time to call in an expert business broker. Trying to evaluate concepts like reputation, customer loyalty, or your customer base can lead to wildly inaccurate numbers that will cause disastrous business valuation results and unhappy parties on both ends of the business deal. Only a qualified business broker skilled with business valuation techniques can help you accurately quantify the true value of your intangibles.

Many business brokerage firms will provide a free approximate estimate for small business values. NJ based firm like A Neumann & Associates have been in business for many years and can offer qualified free valuation reports.

Other key considerations to address when evaluating a business include:

  • health of the industry the business is in
  • economic climate of the industry
  • availability of loans
  • cash flow

There is no one-size-fits-all business valuation technique. There are experts who use a combination of many calculations and years of experience. Only trained, credited and most of – experienced brokers are qualified to perform accurate, certified business valuation technique.