What is the book value of a business? You’ve probably heard the common rule of thumb: a business is worth roughly 3 times its EBITADA (Earnings Before Interest, Taxes, Appreciation, Depreciation, and Amortization). While this provides a quick snapshot, it often leaves significant value on the table.

The Problem with traditional book value:

Traditional valuation methods with businesses valued under 5 million, focus primarily on financial ways like EBIT or EBITADA and overlook the crucial intangible assets that drive a business’s true worth.

Growth Concepts: A New Approach:

At Growth Concepts, we go beyond the surface. We believe in uncovering the maximum potential value of your business and documenting it so a potential buyer, loan officer or investor could realize what you have and pay a higher selling price.

Here’s how:

The “14 Immutable Laws of Business Value“: Our approach is rooted in proven principles that guide us in identifying and quantifying intangible assets.

Analyzer II 3.0: Our proprietary machine learning tool analyzes hundreds of thousands of business model variations, revealing hidden value drivers that traditional methods miss.

Intangible Value Assessment: We meticulously evaluate and quantify the intangible assets that contribute to your business’s overall worth and document these intangibles in a business value plan.

What This Means for You:

Instead of a generic 3x EBITADA valuation, we provide a comprehensive assessment that reveals the true value of your business and then help your realize that higher evaluation. We help you understand and could leverage the intangible assets that drive growth and maximize your return. Typically our customers receive a 3 to 5 times increase in discretionary cash.

Stop leaving value on the table. Discover the hidden potential of your business with Growth Concepts. Ask for a complimentary review of your particular situation.

Maximize Your Team’s Business Brokerage Performance with Targeted Online Training and one-on-one assistance.

Is your team equipped to handle the complexities of business sales?  In today’s competitive market, providing your agents with top-tier training is essential for success.  We offer comprehensive online team and individual training designed specifically for the business brokerage industry.

Why Invest in Online Team Training?

•     Consistency: Ensure your entire team operates with a unified understanding of best practices, valuation methodologies, and sales strategies.
•     Efficiency: Online training minimizes downtime and travel costs, allowing your agents to learn at their own pace and convenience.
•     Scalability: Easily onboard new team members and keep existing agents up-to-date with the latest industry trends and techniques.
•     Customization: Tailor the training to address your team’s specific needs or an individual’s needs and focus on areas where they require the most development.
•     Measurable Results: Track your team’s progress and identify areas for improvement through online assessments and reporting.

Our Expertise and Resources:

We bring extensive experience in the business brokerage field, combined with cutting-edge online learning tools and resources.  Our training covers critical areas, including:

•     Deal Structuring: Negotiating effectively and structuring deals that maximize value for both buyers and sellers.
•     Marketing and Lead Generation: Developing targeted marketing strategies to attract qualified buyers and sellers.
•     Due Diligence: Conducting thorough due diligence to identify potential risks and ensure smooth transactions.
•     Client Relationship Management: Building strong relationships with clients and providing exceptional service.

Get Ahead of the Competition:

Invest in your team’s development and position them for success.  Contact us today to learn more about our online team training programs and how we can help you achieve your business goals.  This page is currently under construction, but we’re ready to answer your questions and discuss your training needs. Don’t wait – empower your team now.

What is a business value key indicator? First, why? With business value analysis one or two key indicators could give you an overall feel of the business-enough to drill down or not. This is one of those indicators.

When a small business is sold, a significant asset transferred is the existing customer base. This customer list represents a built-in revenue stream and a foundation for future growth. Therefore, thoroughly understanding the customer base is paramount for both the seller and the buyer. For sellers, a comprehensive understanding of their customer base is crucial to maximizing the selling price.

Beyond simply identifying existing customers, a more insightful metric is the “customer base unit cost.” This metric quantifies the cost of acquiring each customer, providing a deeper understanding of the business’s marketing efficiency and the true value of its customer base. To calculate the customer base unit cost, the total marketing expenses are divided by the total number of customers acquired.

Industry benchmarks for customer base unit cost can vary significantly. For instance, a retail bakery running wasting a lot in advertising might have a relatively high unit cost, perhaps around $9 per customer. In contrast, a used car dealership might incur a significantly lower cost per customer with lower advertising costs, however reaching $200 per customer. Make sure the key indicator is specific to the business and industry. These figures illustrate the wide range of acquisition costs across different industries and business models.

Tracking and Analyzing Customer Base Unit Cost

Regularly tracking and analyzing the customer base unit cost provides valuable insights into a business’s marketing effectiveness and the company’s sustainability. By monitoring this metric over time, businesses can identify trends, pinpoint areas for improvement in their customer acquisition strategies, and ultimately optimize their marketing spend.

For potential buyers, understanding the customer base unit cost is equally crucial. Conducting thorough due diligence involves analyzing the seller’s financial records to assess whether the cost per customer aligns with industry benchmarks with business intelligence and reflects the true value of the business. If the unit cost appears excessively high, it may indicate inefficiencies in the seller’s marketing efforts or a less valuable customer base than initially perceived.

Key Considerations:

• Customer Lifetime Value: While the customer base unit cost focuses on acquisition costs, it’s essential to consider the customer lifetime value (CLTV). CLTV represents the total revenue generated from a single customer over their entire relationship with the business. A high CLTV can offset higher acquisition costs, making them more justifiable.
• Customer Segmentation: Analyzing customer base unit cost across different customer segments can provide valuable insights into the relative profitability of each segment. This information can inform targeted marketing campaigns and help businesses optimize their customer acquisition strategies.
• Data Accuracy: Accurate data is essential for calculating the customer base unit cost. This requires careful tracking of marketing expenses and maintaining a comprehensive and accurate customer database.

By diligently tracking and analyzing the customer base unit cost, businesses can gain a deeper understanding of their customer acquisition efforts, optimize their marketing spend, and ultimately enhance the long-term value of their customer base. This metric serves as a critical indicator of business health and provides valuable insights for both business owners and potential buyers.

In today’s competitive market, businesses are constantly looking for ways to improve their bottom line. While advertising can be an effective way to reach new customers, it is not always the most efficient or sustainable way to grow a business for more equity to leverage. A business value move, on the other hand, focuses on creating long-term value for customers, employees, and other stakeholders. This can lead to increased customer loyalty, improved employee morale, and a stronger brand reputation-sounds like marketing?  A business value strategy is more. Watch the video for the difference between a business value strategy and a marketing move. Also with a business value strategy there is more equity to leverage. As you know, leveraging is the fastest way to wealth.

While marketing could be a way to reach new customers, it is important to remember that it’s narrow focus often misses ways to increase business value. Not all sales are profitable for business value. We take a deeper look at what drives value with the principles and laws of business value and thereby give you move equity for leveraging. And advertising is a lot more costly than a business value initiative and with lower returns.  Watch the video to find-out why.

Would you suggest a business value initiative or a marketing strategy? Watch the video for more.

By focusing on creating equity for leveraging for all stakeholders, businesses owner’s could get on the fastest path for wealth.Sustaining the business model is not just getting new leads. Sure, leads are important however looking at the entire business model with business value’s principles and laws in consideration when creating or improving a sustainable business for creating equity.

Ultimately, the best way to grow a business is to look at as many different options as possible before focusing on one or two narow areas. While forming a value initiative we use Analyzer II 3.0 to look at 100,000s different variations of your business model based on principles and laws of business value. This gives our experienced team the best possible ways to formulate a business value move. This leads to a better initiative with more business value and of course more equity for leveraging. Ask for a complimentary review of your specific situation at the contact page.

To help you with this, we are offering a complimentary online review to assist you in preparing for a smooth transition. Getting started on this today can make a significant difference when the time comes.

If you do not have the “ideal business organization” in mind the valuation is too high.

We want to draw your attention to the importance of evolving your company’s culture and organization towards an “ideal business organization.” This transformation is crucial for owners who plan to exit their business, ensuring that the business model remains intact for potential buyers and therefore maximizing it’s value.

To take the first step towards building business value and securing more equity when you sell, we encourage you to connect with a Senior Advisor. You can find the contact information on our website’s contact page. They will provide an online complimentary review of your situation and outline what it takes to enhance your business’s organizational structure to future buyers.

Don’t miss this opportunity to increase your business’s worth!

A company’s value is less with the Owner working inside the business. From, “14 Immutable Laws of Business Value“, Rule 12, Pg. 21.. Read more about how this law is interdependent with cash flow (requires balancing) in the book.

We are Attracting Executives with Disabilities by creating a workplace that attracts and retains talent with disabilities is not merely a compliance requirement but a forward-thinking business strategy that can enhance innovation and employee performance. The recent outline of practical steps for employers highlights the importance of exclusivity in fostering a workplace culture that values diversity.

Mindset Shift: Embracing Diversity as Strength

An inclusive culture promotes innovation, reflecting a more creative and adaptable workforce. Employers should view diversity, specifically the inclusion of individuals with disabilities, as a vital component of their organizational strength rather than an obligation. This perspective can drive significant changes in how businesses operate and engage with their employees.

Staying Informed and Educated

We rightly stresses the importance of understanding the Americans with Disabilities Act (ADA) requirements. Regular training not only helps avoid potential legal issues but also cultivates a culture of awareness and respect. An informed workforce recognizes the need for reasonable accommodations and avoids discrimination, enhancing overall employee morale and productivity.

Empowering Accommodations

Providing necessary accommodations or allowing accommodations by offering work from home positions for those with disabilities is another crucial step highlighted. Rather than seeing these adjustments as burdens, organizations are encouraged to view them as investments in their workforce. The emphasis on assistive technologies and flexible working conditions fosters an environment where all can thrive, thus integrating diverse talents into the team seamlessly.

Inclusive Recruitment Strategies

Engaging in diversity-focused recruitment events shows a proactive approach to attracting candidates with disabilities. By clearly stating a commitment to being an equal opportunity employer on job postings, companies can significantly broaden their talent pool. The review effectively conveys how active participation in these hiring events not only improves visibility but also reinforces an organization’s commitment to diversity.

Administrative Essentials

This page outlines essential administrative practices that businesses should adopt before hiring, such as ensuring registrations and compliance with ADA standards. Updating employee handbooks to reflect inclusivity and accommodation practices is a vital step that reinforces a company’s commitment to supporting all.

Collaboration with Organizations Supporting Disability Inclusion

Working with networks focused on supporting individuals with disabilities further strengthens recruitment and retention strategies. Collaborating with these organizations not only provides access to a wider pool of qualified candidates but also reflects a company’s active engagement in promoting inclusivity. This partnership can build trust and position the organization as a preferred employer for individuals with disabilities.

Accessibility in Application Processes

Making the application process accessible is fundamental, as the review points out. By ensuring that digital platforms are compatible with assistive technologies and that clear instructions are provided, companies demonstrate their commitment to providing equal opportunities from the very first point of contact.

Commitment to Executive Development

The suggestion to foster ongoing Executive development through mentorship and training initiatives is an excellent way to ensure that all employees feel valued. Regular feedback and open dialogue about accommodation needs not only reinforce exclusivity but also cultivate a nurturing environment for career growth.

Conclusion: An Ongoing Journey Toward Inclusivity

In conclusion, the review encapsulates a comprehensive approach to building an inclusive workplace that values the contributions of individuals with disabilities. The assertion that creating an inclusive environment is an ongoing journey is particularly insightful, as it underscores the need for continuous evolution in policies and practices. By embracing diversity in a meaningful way, employers not only enrich their organizations but also contribute positively to the broader community and economy. The commitment to inclusivity ultimately reflects an organization’s values and its dedication to fostering a diverse and vibrant workforce, paving the way for a brighter, more inclusive future.

How do you view business value analysis? Buyer? Equity Fund Manager? Seller? Investor? Loan Preparation? CEO? Owner? Broker? Change Maker? There are many views. Each view takes a different business model for understanding business value in their particular situation.

We are more than business intelligence and take a holistic view of the business and it’s environment. Especially for what is your next value initiative or leveraging? The power of Analyzer II version 3.0 gives the user 10,000s different variations of a particular business model whether, maximizing value before the sale, finding the upside of a potential company to buy, preparing to launch a new idea, re-engineering for the loan or exiting plus more. Read an article by Kim that may lead your analysis and reasoning to deeper understanding and a much better way.

Kim Warren

Hypothesis-driven strategy – we can do better.

Experienced consultants have told me how they use a “hypothesis-driven” approach to figure out strategy recommendations for clients.

In summary, this means starting from some well-informed explanation for the outcome of interest. We then seek and analyse data about the elements of that explanation, which may lead to the hypothesis being confirmed, modified or rejected. (Harvard Business School Online.)

Hypothesis-driven strategy is contrasted with either

– a “boil the ocean” approach, where you say “give me all the data”, analyze everything, and see what findings jump out, or

– the use of intuition, trial and error, or exhaustively exploring all options

Thinking back to my recent post on the Pyramid Principle ( ), “boil the ocean” looks like analyzing everything at the bottom and middle of the pyramid – clearly wasteful. Trial and error looks like starting at the left of the pyramid and working across until we bump into an explanation that works (path C).

But there are also problems with the hypothesis-driven approach. In this scenario:

– the data and analysis to test hypothesis A finds it is wrong

– so we turn to hypothesis B, which analysis also shows to be wrong

– so we try hypothesis C, which analysis shows to be correct

So we wasted effort, delays and cost chasing false leads.

And it turns out that hypothesis C is not good enough either, because – as we will see next time – there is a further part of the explanation we didn’t bother looking for because analysis confirmed hypothesis C.

Engineering – not science.

The hypothesis-driven process seems to be driven by a desire to appear ‘scientific’ – we want to explain some phenomenon, for which there are many possible root-causes, and many unknown causal pathways. We can see this in medical research, with the endless studies ‘proving’ statistically that illness A must ultimately be caused by factors X, Y Z. After which, detailed biochemical studies try to fill in the causal pathway by which that happens.

But that’s not our world! We are not dealing with a vast bowl of mysterious spaghetti, but with systems that we ourselves designed. So we are not scientists trying to reveal the mysteries of the cosmos, but engineers, trying to fix and optimise a very well-understood machine. And we already have a robust and reliable theory for how that machine works ()

So … there is a much simpler and more reliable process for strategy-building – whether that is about fixing some challenge or building a stronger future.

The above article leads us to follow an abductive way of reasoning for more solid results and in a much faster way.

Early Stage Business

Are you ready to begin looking at leveraging your business equity? Do you want to be in a million dollar enterprise in the next 3 to 5 years? Leveraging a business is much like fixing-up a real estate duplex and then investing in another property. However, fixing-up the kitchen or improving the curb appeal is a little different than creating a value initiative that ends-up increasing business equity. Since, you could have profitable sales and no more business value.

If you have an existing business and are asking, “How could I use my equity to begin leveraging?” Perhaps you are asking, “Is my current business model at maximum business value or could it manifest more equity?” Or, “Could I get the assistance to be in a million dollar enterprise in 3 to 5 years with my current equity?”  If you are asking these questions then get advanced technology, principles and laws of business value and an International Team of Advisors with your endeavor.

Contact us for a FREE Online Business Leveraging Analysis!

The spreadsheet we share below provides the numbers for business leveraging, but as you know, there is more to success. We eliminate the possibilities of failure with a proven A.I. system based on principles and laws of business value and an International Team.

Take a moment to download the FREE business leveraging worksheet with the form below and begin crunching the numbers — it could be the first step towards transforming your financial future. If you would like, one of our International Team Members could guide you through this worksheet at no cost, contact us at this link.

One of our International Team members could provide valuable guidance through this worksheet and proven business leveraging system while using Analyzer II 3.0 to get you on a path for wealth.
Our team of professionals could help you navigate the journey to successfully integrating both the quantitative and qualitative aspects of your business leveraging strategy for more business equity. Get on the right path from the beginning of your new adventure.

What is business equity? The difference between the value of your business (plus other business assets) less business liabilities is your company’s equity. If your business liabilities constitutes less than 80% of the value of the business, you could harness that equity to finance important business choices, skillfully manage debt, or build wealth. 

Contact us for a FREE Business Leveraging Analysis!

Starting a Business with little to leverage

If you haven’t started your business journey yet, the book, 10 Immutable Laws of Business Ideation”, 10 explainer videos, 3 worksheets and expert guidance are available to get you started on the right path. We run your business idea through 10,000s different business models to find the optimal business value and path. Using Analyzer II 3.0 brings your dream to reality.

Established Business

Maybe you have already grown equity in an established business?  Could you get more out of the business model before you leverage?  Do you have a target in mind? Do you have any untapped business value to build more equity? These are some of the questions we could guide you through while stabilizing, justifying and optimizing your current company’s value. Then later you could begin leveraging internally before we move to external leveraging for getting into the best position for a loan officer or potential seller.

While focusing on the principles and laws in the book below along with finding untapped business value for your business we are looking for a target.  It could be a competitor or another business in a diversified field to strengthen your company’s position depending on your situation. There are many options that could be projected to form an equity strategy. Let our International Team help you start formulating your business leveraging strategy. Contact us today!

Contact us for a FREE Business Leveraging Analysis!

We invite you to request an online complimentary review of your business so we can help you begin this journey toward maximizing your company’s value for increased equity for leveraging. In the future, we can explore options such as leveraging with a buy-out, spin-off, or other.

We adhere to the principles and laws of business value outlined in the insightful book, “14 Immutable Laws of Business Value” while maximizing your company’s value for more equity. If you own a business and are serious about maximizing its value, it would be beneficial for you to read this book and evaluate how these principles are applicable to your situation. The earlier you engage with this material, the better positioned you will be to enhance your company’s leveraging power.