Author: HairWeavings Editorial Team

This is the first question every business owner asks when I talk with anyone about exiting her business. There are two answers:

1. A business is only worth what someone is willing to pay for it.
2. It depends.

If you were expecting a simple formula, these answers are not satisfying. But both are true and, if you’re thinking about exiting your business, I suggest you accept this reality. In other words, you’re not going to KNOW the value of your business until someone buys your business. You can get a rough idea, but you won’t KNOW.

That leaves us with the second answer. When I write that the value of your business “depends,” I mean there are many factors to consider. Let me use a comparison between two businesses to illustrate.

Two Sample Businesses

My wife and I go to the local farmer’s market at least once a month, and we usually end up buying lunch from the same vendor. It’s a stall that offers Turkish-style grilled chicken pita sandwiches, and they’re great! The owner is a woman I’ll call Debi. She has a grill person doing the cooking, and Debi is the counter person. There is always a long line of potential customers, and I can see Debi does a plate-full of business every weekend.

The second business is Donna’s yarn shop in a small town. She sells many types of yarn, knitting supplies, patterns, and some finished items. Donna’s business took a big-hit in sales when the pandemic happened because people weren’t shopping live much. Donna pivoted and started to sell kits and supplies on-line through her website. She even started a subscription service called the “kit of the month club.” Through this service, customers receive a kit to make a different item each month. Donna’s retail business has recovered, and she has kept the on-line store.

While very different types of businesses, Debi and Donna have some similarities in their businesses too. They both have recurring customers, and both have labor costs, fixed costs, and the cost of goods sold. Let’s assume both Debi and Donna make the same gross revenue each month. How would we determine the value of both businesses?

You Only Have Two Choices

You can imagine the answer depends on many factors, not just gross revenue. This is what I mean by the value of your business, “depends.”

However, “it depends” doesn’t answer your #1 question while you contemplate whether to go through the effort of selling your business.

I know you need to have a rough idea of your business’ value before you think about selling your business. Your subsequent actions depend on the answer.

If your business is worth very little, you’ll take one set of actions. If the business is worth enough to make it worth your while to sell it, you’ll take that road. Like Robert Frost wrote in his poem, “The Road Not Taken,” the business owner faces a decision and can’t go both ways.

How Do You Decide If Your Business Is Financially Worth Selling, at Least in the Short-Term?

First, look at your business from a potential buyer’s perspective. Just like selling a house, the buyer dictates the final selling price and terms. You can think your house is worth $X, but a buyer may think it’s worth $Y. Unless you, as the seller, and the buyer can bridge the gap, you won’t sell your house.

Thus, the key to figuring out the value of your business is considering what a potential buyer would value. Every business is different, of course, but buyers generally consider these factors when doing a preliminary estimate of your business’ value:

• Financial performance, including gross and net revenue (profit) currently and trends, sales growth, operating expenses.
• Market opportunity including market size and growth potential, competitive landscape trends.
• Reputation and brand.
• Customer/client base and relationships, including lifetime value of a client or customer.
• Operational efficiency, including experience and competency of existing team members, roles and responsibilities, written standard operating procedures.
• Potential synergies with existing operations.
• Intellectual property, for example, trademarks, service marks, copyrights, patents, contracts, agreements, and proprietary processes.
• Goodwill (intangible value that a company earns beyond its tangible assets such as industry and vendor partnerships, specialized knowledge, community involvement, thought leadership).

While a formal valuation by an independent expert is a requirement when you sell your business, you can obtain a reasonable estimate of your business’ worth on your own. There are three methods you can use and next time we’ll look at the different approaches.

A good exercise is to look at each of the above factors and rate your business with a +, – or 0 as a potential buyer might rate your business.

Previous article in this series, 5 STEPS TO SELL YOUR BUSINESS.

Let’s Have a Conversation:

Let me know what insights you receive from this simple approach by making a comment. Are there any other factors I left out that you think are important to consider?

Paige DeSorbo’s Gold Cutout Bikini / Summer House Season 8 Episode 3 Fashion

These Hampton hotties had themselves a nice beach day on Summer House last night and Paige DeSorbo of course showed up in an ensemble. She wore a gold ribbed cutout bikini, a gold crochet cutout cover up dress, and topped it off with a big straw tote. Added all together they created the prefect beach babe vibe.

Sincerely Stylish,

Jess

Click Here to Shop Her Bikini in Other Colors

1st Photo: @amandabatula

Originally posted at: Paige DeSorbo’s Gold Cutout Bikini

Click Here for Additional Stock in Her Top / Here for More Stock / Here for More Stock / Here for Even More Stock

Click Here for Additional Stock in Her Skirt

Originally posted at: Ciara Miller’s Purple One Shoulder Bikini Set

Photo: @camwimberly1

Originally posted at: Cameran Eubanks’ Blue Poppy V Neck Maxi Dress

Second marriages are often a second chance at love and tend to draw on the wisdom gained from prior experiences. There are plenty of reasons why couples choose to remarry after divorce or the loss of a spouse. Love and companionship remain the leading reasons people decide to get married. However, beyond love, there are practical considerations such as increased health, better finances, and lower poverty rates that often motivate individuals to remarry.

Those entering into a second marriage often bring valuable insights from their past relationships, allowing them to navigate potential pitfalls more proficiently. By reflecting on past mistakes and understanding their own needs and boundaries more adequately, spouses can actively work towards building a stronger and more fulfilling partnership the second time around.

Many times, those who choose to marry for a second time opt to prepare a prenuptial agreement, which is a practical tool that clarifies financial matters and protects assets. Prenuptial agreements also serve as a means for couples to communicate openly about expectations and responsibilities. They foster transparency and trust, contributing to the overall stability and longevity of the marriage.

Benefits of Prenuptial Agreements in Second Marriages

Opting to produce a prenuptial agreement for a second marriage can provide couples with various advantages. These agreements offer a structured way to discuss and clarify financial matters, allowing both partners to make sure they are on the same page regarding their assets, debts, and future financial plans.

Prenuptial agreements can also help establish clear expectations and boundaries within the marriage, allowing open communication and trust between partners. Some of the more common benefits include the following.

Protect Your Retirement

Marrying later in life often entails a different set of considerations compared to marrying in one’s 20s. By this point, individuals have likely established careers, acquired various assets, and accumulated wisdom through life experiences. For those with children from previous marriages, the thought of potential conflicts over assets, such as retirement plans, with a new spouse can be concerning. In such cases, it’s prudent to consider drafting a prenuptial agreement with one’s soon-to-be spouse.

Alongside planning the wedding, couples who choose to marry for a second time may find themselves contemplating their long-awaited retirement. However, with retirement planning comes the need to safeguard hard-earned savings. While premarital assets are typically considered separate in divorce proceedings, it remains crucial to protect retirement funds that are acquired during the second marriage.

Even if retirement is still a decade or more away, any income or pension earned during the marriage could be deemed jointly owned and therefore will be split between both spouses. Given that generating new income after the age of 65 becomes more challenging, protecting retirement savings becomes even more important. Therefore, couples preparing for a second marriage and looking towards retirement need a prenuptial agreement that can offer retirement savings protection for their financial future.

Protect Your Children’s Inheritance

Creating a prenuptial agreement for a second marriage is not only practical but can also be crucial for protecting your children’s inheritance. While you may feel confident in your ability to maintain financial independence and harmony within your marriage, the reality is that disputes over property, especially in cases involving children from prior marriages, are all too common.

In some cases, when a spouse dies, their partner will think they are entitled to what they shared, and not their spouse’s children from a previous marriage. In such scenarios, a prenuptial agreement serves as a vital estate planning tool, clearly outlining how assets will be distributed in the event of divorce or death. This becomes particularly pertinent if one or both spouses have children from earlier relationships.

Without proper planning, various state laws could dictate that your entire estate goes to your surviving spouse, potentially leaving your children with nothing. Therefore, having both a trust and a prenuptial agreement can safeguard your children’s inheritance and prevent potential conflicts between your spouse and your children over assets after you are gone.

Ensures Spouses Are on the Same Page

Creating a prenuptial agreement for a second marriage is beneficial for ensuring that both spouses are on the same page. A prenup is a reflection of the promises made to each other, affirming that the marriage is based on love and respect rather than financial gain.

This legal document not only alleviates the concerns of family members but also demonstrates that the new relationship is grounded in mutual support and understanding. The process of drafting a prenuptial agreement also encourages open and honest communication between partners. It provides an opportunity to discuss values, fears, and expectations, ultimately strengthening the relationship and laying a foundation of trust and transparency that will benefit the marriage in all aspects.

Provides Peace of Mind

Creating a prenuptial agreement for a second marriage offers significant benefits for our peace of mind. It provides a sense of security and clarity regarding financial matters, allowing both partners’ assets and interests to be protected. With a prenup in place, there’s a clear understanding of how assets will be distributed in the event of divorce or separation, alleviating uncertainty and potential future conflicts.

This peace of mind allows couples to focus more on building a strong and fulfilling relationship, knowing that their financial future is safeguarded. A prenuptial agreement can also help mitigate stress and anxiety associated with the unknown, providing a solid foundation for trust and transparency within the marriage. Overall, having a prenup in a second marriage offers peace of mind by addressing potential financial complexities and promoting open communication between partners.

Further read FINANCIAL ADVICE FOR WIDOWS: WHAT TO DO BEFORE YOU REMARRY.

Let’s Have a Conversation:

Do you think a prenuptial agreement can be a solid basis for a second marriage? Would you consider signing one if you were to marry again? What assets would you protect?