One of the issues that we all face in growing our business is to be sure that we are creating the kind of value that someone would pay us some money for. Something a bit better than the standard 3 x annual earnings rule of thumb. But how do we measure what we think we are worth?
Various approaches to this have been tried such as benchmarking or the balanced scorecard but what we need is something we can easily apply. Most of the value in present day businesses is intangible. Brand, systems, customer database, staff creativity all contribute to producing the kind of sustainable and renewable income streams that prospective buyers will pay for.
This video sets out some ideas on this subject.