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Putting a price tag on your baby: how our business valuation calculator works
Hypothetical question: if you ever were to consider selling your first-born child, how much do you think you’d get for them?
While this might seem like a preposterous (and not to mention, very illegal) idea, the truth is that many business owners find themselves facing an equally difficult dilemma when the time comes to attach monetary value to their businesses. After all, there are many parallels that can be drawn between raising a baby and starting a business: both start out with a moment of brilliant conception, both will consume all of your free time, and both cost vast amounts of money, energy and dedication to raise.
How much are your blood, sweat and tears worth?
So then it’s no wonder that so many business owners think of their businesses as their babies – and understandable that they get a little edgy about the topic of valuation. After all, how is it possible to put a price tag on so many sleepless nights, moments of inspiration, and proverbial blood, sweat and tears? How do we begin to quantify a dream that was worked into reality?
The short answer is that there is an actual mathematical process behind all of this, brought to you by our business valuation calculator. That’s right – as uninspiring as it may sound, there’s an algorithm that can break down practically every aspect of your business into rands and cents (or dollars, euros and any other currency). And this is a good thing – because as much as we all love hearing about a business’ first steps, successes and potential, determining the actual value of that business is not the moment to get emotional.
That doesn’t mean that a judgement call is off the table – but you need experience with real-world deals in order to make one. This mixture of art and science is where we come in.
Let’s eliminate the guesswork with a business valuation calculator
Our bizval business valuation calculator is built to investment banking standards (for your peace of mind), but that doesn’t mean it is inaccessible. In fact, we’ve designed the front end to appeal to every type of business owner across every industry. We start by asking approximately 25 questions, which cover everything from basic information like industry and years of operation through to the more finicky financial information like revenue and expenses. You supply the information, click submit and voila – you receive your valuation literally seconds later.
For some, this may seem like too clinical a process, and we completely understand that. That’s why we also have a dedicated bizval Concierge option, for those who prefer a human touch and feel more secure knowing that an actual finance professional is overseeing the numbers.
In more unusual cases or where you’re looking for actionable insights from the valuation (such as sensitivity to key growth assumptions), the Concierge option is the right choice. Think of it as our business valuation calculator with more supervision.
We understand where you’re coming from – and we’ll handle your valuation with care.
We’re business owners ourselves, which means that we understand what your business means to you. That’s why it’s so important to us that you know exactly what your business is worth, so that you can make those important decisions without a spectre of doubt. What’s more, we aim to give you these crucial insights at a price point that you can afford – one that is literally a fraction of what a professional services firm would charge.
Are you ready to get started? Simply visit our bizval website and follow the prompts. You can also check out the insights section of the website for webinars, podcasts and articles that can increase your knowledge about valuations.
VALUE YOUR BUSINESS