Insights on Financial Strategies
Can you Afford to Sell??
A "Business Value Gap" is the difference between the value of your business today and what you need it to be at time of sale.
A shortfall can have a significant impact on your retirement plans and may force you to reassess your desired standard of living in retirement.
Worst case - it can mean you cant afford to sell.
Retirement should be the best years of your life - the time for you to reap the rewards of your labour. As you approach retirement you need to determine your business value gap.
Business value gap analysis
Do you know:
- What your business value needs to be at time of sale?
- How many years it is until you can afford to sell?
- A future profit target that guarantees you a desired standard of living?
Business value gap analysis is a simple process of determining your retirement income and assets, business value (current and future) and strategies to improve business profit and wealth.
Grow before you go
If your business value gap analysis reveals a shortfall in business value then you will need to implement business strategies to improve your profit before you sell. For example, improving your average sale per customer will increase sales, gross margin and net profit. Knowing what your business value needs to be means you can calculate your future profit, gross margin and sales targets.
Value gap analysis provides business owners and managers with piece of mind from understanding the tie between a future standard of living at retirement and business value.
To make sure you can afford to sell, contact Clifton Accountants today.