WeGetBiz

WeGetBiz.com a leader in helping businesses thrive by improving value

Purpose: Improve lives by improving personal and organizational value (health)

You’ve worked hard building your business, and it seems to be doing well. Sales are strong; customers are happy. Then, one day, you find you need a loan, or investors, or need to sell due to health issues, or you want to retire.

You may be shocked to learn that, despite those strong sales and a seemingly productive bottom line, you can’t sell your business for what you think it’s worth because the value isn’t there. You learn that you don’t dictate the value of your

business, the buyer does. Sure, buyers look at sales and bottom line (tangible assets) but that’s only a small portion of the valuation equation. Buyers also look at intangible assets such as leadership (all leaders), quality employees, systems, and more. Therefore, the best objective measurement of business health is to value the business based on tangible and intangible assets – together, these determine an organization’s health.

Why are healthy organizations valuable? Because when one walks into a healthy organization, they get a good feeling; everything feels right. This feeling is the result of quality intangible assets. There is no chaos; employees and managers are happy; everything is clean and neat; you get that “comfy feeling.”

Of course, this makes shareholders, owners, leaders, employees, and customers happy - it feels good (and valuable) to be a part of an organization like this.

One common reason for poor organizational

value is because leadership is often unaware (healthy) organization.” This means providing them with respect of the critical role intangible assets play in However, when leaders discover the Top through Fit, Healthy Culture, Training, and that value. When a banker, investor, or buyer 3 Strategies to Ensure Organizational Value Development. Employees, and those who work wants a quick value estimate of a business, (Health), they start to recognize that may not with them, need to fit well into the company, they often use a simple formula (Value = be as unreachable a goal as they first believed. team, and job. This requires a modern hiring EBITDA x Multiple). Here, EBITDA (Earnings Nonetheless, WeGetBiz.com is the first to process. We benchmark each job, then assess Before Interest, Taxes, Depreciation, and emphasize that these strategies are not easy to candidates using multiple sciences to determine Amortization) is multiplied by a “multiple.” implement - it takes earnest desire, work, focus, if they are a good fit, then perform a sound Generally, the average multiple is what and some helpful tools. onboarding process. Employees want to be businesses have been selling for in a given Most business valuation professionals a part of a good organizational culture, and, industry. However, this is just a starting point agree that these three strategies are, with few since they want to feel like they are moving in a that is adjusted up or down - based mostly exceptions, the biggest drivers of business favorable job path, they want to be trained and upon the intangible assets. In fact, leadership is value (heath). We will approach them in developed for that growth. often surprised to find that intangible assets can order of importance. Quality leadership - T h e t h i r d s t r a t e g y i s B u s i n e s s make up 70-80% of the value. Therefore, if your in every position who leads one or more Intelligence. Business organization’s quick leaders often avoid this, value calculation is $3 million, but your i n t a ng i b l e a s s e t s are weak, you could LEADERS NEED UP-TO-DATE BUSINESS INTELLIGENCE TO AS THE LEADER to their organization’s detriment, for fear of not understanding the lose as much as $2.4 m i l l i o n i n v a l u e. Wo r s e , i n s o m e situations, intangible assets can reduce an MAKE EFFECTIVE DECISIONS FOR THE ORGANIZATION’S HEALTH GOES, SO GOES THE COMPANY. information or how to use it effectively. Yet, just as a pilot needs flight information to keep a plane flying, a business organization’s value leader needs up-to-date to zero. business intelligence to

That’s why WeGetBiz.com spends much of employees - is the most critical value driver make effective decisions for the organization’s its time helping organizational leaders identify for every business. We use the term “Quality health. With today’s technology, tools, and the intangible assets that can improve the value Leadership” because so many in leadership easy-to-understand graphs and reports, there and health of an organization. Obviously, this positions are LINO’s (Leader in Name Only). is little reason to neglect business intelligence. doesn’t mean leaders should focus only on In fact, WeGetBiz.com believes this so strongly It’s not easy, but the good news is today’s intangible assets. Rather, leaders must always that, typically, the first step taken with any business leaders have excellent tools available keep an eye on both tangible and intangible organization is to give top leadership one to help them be better stewards of their assets and remain aware of the power intangible of the best leadership assessments available organization. The journey may not literally be a assets have over tangible asset value - and to highlight the leaders’ strengths and climb up Mt. Everest, but a good leader should organizational success. opportunities. seek an experienced Sherpa, one who has been

One concern WeGetBiz.com often hears The second strategy is Top Talent. there, done that, and can help navigate the path about value is, “I just don’t believe we can WeGetBiz.com suggests every organization to organizational success. become the ‘happy employees, managers, not consider “the employees” a top asset, but The team at WeGetBiz.com might just be and shareholders you portray in a valuable instead consider each employee a partner. the Sherpa you need.

Top 3 Organizational Value Strategies Leadership - Ensure Quality Leaders are in every lead position Top Talent - Strive to constantantly improve all employees through Fit, Healthy Culture, Training and Development Biz Intel - Just as pilots need constant flight instrument information to ensure flight success, leaders need continuous business intelligence for organizational success