In addition to knowing what we mean by ‘worth’ it’s also important to recognise what a family business is worth, financially, practically and emotionally, to the full range of stakeholders. Employees, suppliers, customers, family, shareholders, founding generations and future generations, all place different meanings to this.
IF YOU’RE NOT ADDING VALUE TO THE BUSINESS EACH YEAR, EVEN BY STAYING STILL, YOU’RE HEADING THE WRONG WAY.
Of course, value doesn’t have to mean revenue or even profit, as value can be in terms of investment, relationships, development and funding growth. What’s most important is that everyone shares an awareness and can align to views of value, worth, investment and debt. This will be from training and human capital development through to strategic or organic growth.
The question of “what is the family business worth?” is vitally important for everyone and by being addressed it can open up trust and understanding as well as guiding strategy, budgets and ultimately success.
Have you identified a strategy for growth in the future?
Do you have any idea of what your business is worth to aid future decision making?