How much goodwill do you have in your business?
Articles, Building a Valuable Company The term “goodwill” is often thrown around in conversation as though it is a subjective description of how much your customers like your business. In fact, when it comes to valuing your business, there is nothing subjective about the…
Rich vs. Famous
Articles, Building a Valuable Company Have you set a goal for your company this year? If you’re like most business owners, you’re striving for an increase in your annual sales. It’s natural to want your company to be bigger because that’s what everyone around us seems…
Rich OR Famous
Articles, Building a Valuable Company Fame can take interesting men and thrust mediocrity upon them. David Bowie Have you set a goal for your company this year? If you’re like most business owners, you’re striving for an increase in your annual sales. It’s natural to…
Market Share vs. Addressable Market
Articles, Building a Valuable Company Imagine you’re a farmer and you’ve been tending to your crops all year. It’s harvest season and finally time to collect the spoils of your labor. You start harvesting your crops only to find out that pesky rodents have been quietly…
How to Get Rich in 3 (Really Difficult) Steps
Articles, Building a Valuable Company Becoming wealthy may not be your primary goal, but if it is, there is a reasonably predictable way to get rich in America. Step 1: Ignore Your Parents Parents around the world typically encourage their kids to get educated so they can…
6 Reasons Not To Diversify
Articles, Building a Valuable Company Diversification is a sound financial planning strategy, but does it work for company building? How does Vitamix get away with charging $700 for a blender when reputable companies like Cuisinart and Breville make blenders for less than half…
10 Things That Make Your Business More Valuable Than That of Your Industry Peers
Articles, Building a Valuable Company, Improving Company Value The value of your company is partly determined by your industry. For example, cloud-based software companies are generally worth a lot more than printing companies these days. However, when we analyze businesses in the same industry, we…
8 Ways to Know if You Have a Job or Own a Business
Articles, Building a Valuable Company The ultimate test of your business can be found in a simple question: would someone want to buy your company? Whether you want to sell next year or a decade from now, you must be building an asset someone would buy – otherwise, you have…
Thinking Vs. Doing: The Owner’s Dilemma
Articles, Building a Valuable Company There’s a steady breeze from the northwest, which cools the warm Caribbean afternoon. Framed between a palm tree and the turquoise water, you notice a man reading. He appears to be working, which seems strange given his appearance: shaggy…
Will your business be more valuable this time next year?
Articles, Building a Valuable Company For many, January is a time of rebirth and resolutions. It’s a month to reflect on last year’s achievements and to set goals for the year ahead. Some people will set personal goals like losing weight or quitting a nasty habit, and most…