Smart Business Discovers The Secret To Business Growth
If you are wondering what the secret is to growing your business, you may be surprised to find out how simple the answer is – you have to know its current actual value. That’s what Rea’s Tim McDaniel told Roger Vozar in a recent article with Smart Business Columbus.
“People will spend a lot of time with an investment manager trying to grow a stock portfolio that may be only 10 to 20 percent of their net worth and ignore their largest asset, their business,” Tim explained. “In order to treat the business as an investment, the first step is to know the value.”
Tim goes on to explain that there are three major ways to impact the value of a business:
- Increase expected future cash flow.
- Decrease risks associated with the business.
- Increase future growth rate.
Next, business owners should develop a plan to positively impact these three areas.