A few weeks ago a friend of mine was telling me about a new exercise routine he had been following to help him lose weight and improve his overall health. It was visually apparent to me that he had achieved success with this new program. When he showed me his progression through weekly photos of himself, however, I immediately bought into his exercise routine as well as his commitment and motivation to its success.
More recently, my brother sent me a current photo of himself and one from one month earlier. He is currently training for a competition and I wanted to see his progress to date. He has bodyweight and bodyfat targets to hit and he hired a physique coach to help him develop an exercise and diet routine. After one month, the improvement is noticeable but admittedly he has more work to do to meet his goals. The pictures, he tells me, help keep him motivated and committed to his exercise and diet routine. They also help him assess his progress to date and identify what areas need further improvement.
That’s when it hit me. Business owners that want to increase the value of their business can learn from this approach. If you want to improve the value your business, you should take its picture at regular intervals.
Taking a picture of your business, by having an independent business valuation, will help you monitor the progress of your business and motivate you to focus on the tasks required to achieve your goals. If you want to attract multiple purchasers when it comes time to sell your business and receive top dollar, taking pictures of your business will also strengthen your credibility in the eyes of potential purchasers.
Audited (or reviewed) financial statements provide credibility to a certain degree but they only speak to the company’s historical financial results. A growth plan (with financial projections) and a business valuation reflect the future of the business which is critical to potential purchasers because value is based on future cash flows.
Have you ever wondered why before and after photos are so effective at selling a diet or exercise routine? Have you ever been tempted to buy a diet book, exercise program or nutrition plan based on the before and after photo testimonials?
Just as you can monitor your individual progress on a diet or exercise routine by taking periodic photos of yourself, you can monitor the progress of your business by having an independent business valuation conducted at regular intervals.
Just as taking pictures of yourself helps with your motivation and commitment to a routine, obtaining annual independent business valuations will keep you motivated and committed to the implementation of your value enhancement action plan.
And finally, just as before and after photos add credibility to your diet or exercise program, periodic independent business valuations will add credibility to your growth and value enhancement plans.
I will be keeping tabs on my friend and my brother in the coming weeks. Success is contagious and their success to date is motivating me to reassess my own diet and exercise routines. Wish me luck!