What is a Business Worth?
Being in the industry for more than thirty years now, we hope to share the knowledge and experience we have acquired in a way in which our viewers will understand the worth of a business in both theory and practice. That is why we launched “What’s a Business Worth?”, an educational series on business valuation and getting your business ready for sale.
This is the introductory episode of our “Whats a Business Worth?” (WABW) Video Series that shows the importance of investing in your own business, and includes a discussion of the relationship between risk and return on investment.
This episode discusses different types of business and discusses their risk and value. This topic sheds light on which businesses are ideal to buy and which you should be careful about.
Small business owners or investors who are up for a higher return and business resilience should find businesses in high-value low-risk industries. These businesses not only convey regular high income, but they could also mean growth and increase in revenue during times like COVID.
In this episode, I discuss the pitfalls of getting it wrong in buying or selling a business. If you pay too much or if you ask for too little, you are not going to be happy. That is why I will tackle in this episode the zone of safety where business buyers and sellers should operate to avoid undervaluation or overvaluation.
Like you, small business owners or investors try to steer clear of low-value high-risk businesses. You would want to engage in high-value low-risk ones to maximise business worth just like everyone else. But how about those businesses in between? Not surprisingly, those under this category can be just right for you and I will be telling you why.