How can a business coach help improve my business valuation?

If you are thinking of selling your business, whether it’s in the short term or just “one day” you might be curious as to what your business is worth. Once you know what it’s worth, the next question is usually “how can I improve the valuation of my business?” It’s one of those things that can be tricky when working out where you should start. And if you are thinking of improving your business valuation, you might also be considering a business coach. Here at Action Coach, we help business owners improve the valuation of their business daily. So, here’s an honest and open review of how a business coach helps improve your business valuation. And here’s a quick disclaimer, for some of you, they can’t.

What specific strategies or techniques can a business coach use to help increase my business valuation?

Firstly, a business coach can work with you to spot where you are currently getting it wrong. They’ll analyse the business with you, look at your numbers and ask lots of questions to work it out. When you know where you are getting it wrong, a good business coach will help you look for the strategies, techniques, and tactics to get it right.

They’ll help you get a stronger education and understanding of that area and help you develop your skills. Then they’ll start implementing the strategies with you. Once the strategies are being worked, a good coach will make sure that you are measuring the result to see whether they are working or not.

If they are, great let’s turn the dial-up. If not, then we might need to go back and change strategies or simply get a better education.

Another one of the key ways that a business coach can help you improve your business valuation is by providing an objective perspective. Business owners can sometimes be too close to their business to see its flaws and opportunities for improvement. A business coach can provide an outsider’s perspective and offer insights that you might not have considered.

How does a business coach typically assess my current business valuation and identify areas for improvement?

Now, let’s take a look at how a business coach assesses your current business valuation and identifies areas for improvement. Typically, a business coach will start by analysing your financial statements, as well as your sales and marketing strategies. It’s not down to the business coach to actually value the business. But there are some general rules that an accountant or business valuer would look at when attempting to value a business.

Things such as:
  • Industry trends and market conditions
  • Revenue and profitability
  • Customer base (are they on a subscription or do you have to sell to new customers each month)
  • Customer retention rates
  • Brand value and reputation
  • Intellectual property, patents, and trademarks
  • Tangible assets such as equipment, property, and inventory/stock
  • Intangible assets such as goodwill and brand recognition
  • The management team and leadership capabilities (are the management time on short or long contracts, could they leave at any moment?)
  • Financial management and cash flow
  • Growth potential and scalability
  • Competition and market share
  • Regulatory and legal risks
  • Economic and political conditions
  • Supply chain and vendor relationships
It’s worth noting…

… that the importance of each of these factors can vary depending on the industry, the size of the business, and other factors. A business coach can help you identify the specific factors that are most important for your business and develop a strategy for improving your valuation.

Once you are clear on the business valuation, a coach can help you look through the things that you are struggling with and help you improve them so you can really make a difference to the value.

How are businesses valued?

Valuing a business can be a complex process that involves evaluating various financial and non-financial factors.

One common approach to valuing a business is the income approach. The income approach involves estimating the future cash flows that the business is expected to generate and then discounting them back to their present value.

Another approach is the market approach, which involves looking at the prices paid for similar businesses in the same industry or market.

Additionally, the asset-based approach looks at the value of the business’s tangible and intangible assets.

A common approach can be to take the equity of the business (assets minus liabilities, which really means things you own minus any debts) and add a profit multiplier. For a business that relies on the owner, the multiple can be low. The same is true if it’s a small turnover business.

However, if the business works without the owner and the turnover is 7 or 8 figures with a healthy profit, the multiple can start to climb.

Ultimately, the valuation process will depend on the unique characteristics of the business and the purpose of the valuation. Working with a qualified business appraiser or financial expert can help ensure that the valuation is accurate and reliable.

Can a business coach provide examples of businesses that have seen significant increases in their valuations after working with a business coach?

One of the benefits of working with a business coach is that they can use real-life experience of businesses that have seen significant increases in their valuations. The key factors that contributed to these increases typically include improved financial performance, which is really important when valuing a business. It could also include more customers from stronger marketing and sales. And maybe even better operational efficiency, and more effective management and leadership.

Here are some examples of the businesses that we have helped at Action Coach Manchester:

How long does it typically take to see results in terms of increased business valuation when working with a business coach?

The time it takes to see results from working with a business coach can vary depending on a variety of factors.

Things that can impact how long it takes could be internal (how you perform) or external (the market conditions). It might also be things like the effectiveness of the coaching relationship and the degree to which you and your team are willing and able to implement changes.

In general, it’s important to have realistic expectations and understand that significant improvements in business valuation may take time. Many businesses work with coaches on an ongoing basis, rather than for a specific project or period of time, in order to achieve sustained growth and success.

That being said, if you and your coach are able to identify and address key issues quickly and effectively, you may begin to see positive results in a matter of months. Some common areas where business coaches can provide value include developing and implementing strategic plans, improving leadership and team dynamics, and optimizing business operations and financial management.

Ultimately, the key to achieving meaningful results is to stay committed to the coaching process and be open to new ideas and approaches. By working closely with a skilled and experienced coach, you can gain valuable insights and support that can help you take your business to the next level.

How will the business coach work with me and my team to implement changes and improvements that can lead to a higher business valuation?

First things first, a business coach will work together with you to identify the areas where your business could use some improvement. Whether it’s marketing, operations, or leadership, a business coach will help pinpoint the areas where you can make the biggest impact.

Next, a business coach will help you create a plan of action to implement those changes. This might involve setting specific goals, delegating tasks to your team members, or developing new processes and procedures.

Start with the end in mind

A good coach will make sure that you are starting with the end in mind when goal setting and deciding what action to take. Starting with the end in mind is crucial to achieving long-term success in any area of life, including business.

By envisioning your desired outcome or goal, you can create a roadmap to guide your actions and decisions along the way.

This approach helps you stay focused on the big picture, and avoid getting sidetracked by short-term setbacks or distractions. When you start with the end in mind, you can also more effectively align your team and resources around a common purpose, creating a shared vision and a sense of purpose.

Ultimately, by taking the time to clarify your end goal and work backward to identify the steps needed to get there, you increase your chances of success and build a stronger foundation for growth and innovation.

Throughout your business journey…

…a business coach will be there to provide guidance, support, and feedback. They’ll make sure you celebrate your successes, learn from your mistakes, and adjust your approach as needed.

So, in short, working with a business coach is like having a trusted partner who can help you achieve your goals and take your business to the next level. With a little bit of magic (and a lot of hard work), a coach can help you increase your valuation and build a business that truly excels.

For more information and how it all works when you have a business coach just click here.

What qualifications and experience should I look for when selecting a business coach to work with me and my business?

When it comes to selecting a business coach, you want to find someone who’s the real deal – not just a self-proclaimed guru in a fancy suit.

First and foremost, look for a coach who has actual business experience under their belt. This person should have a track record of success in the areas where you need help. After all, you wouldn’t take fitness advice from someone who’s never set foot in a gym, right?

Secondly, make sure your coach has the proper qualifications and training. Look for certifications or accreditations from reputable organisations. It’s also a good idea to check their references and reviews from past clients to get a sense of their approach and success rate.

And finally, don’t forget about the all-important “fit factor.” You want to work with a coach who you genuinely like and trust, and who understands your unique goals and challenges. Chemistry is key.

So, in summary, look for a coach who’s got the goods, real-world experience, proper credentials, and a great personality to boot. With the right coach in your corner, you can take your business to new heights and achieve the success you’ve been dreaming of.

When wouldn’t I use a coach to help me improve my business valuation?

There are some situations where you might not want to use a business coach to help you improve your business valuation. For example, if you’re not committed to making changes and improving your business, then working with a coach may not be a good fit for you.

Similarly, if you’re not open to receiving feedback and criticism, then working with a coach may be challenging. A business coach is there to provide you with honest and constructive feedback, and if you’re not receptive to this, then you may find the process difficult.

If you’re already an expert in your industry and have a wealth of experience, then you may not need a business coach to help improve your business valuation. However, it’s worth noting that even the most experienced business owners can benefit from working with a coach to gain new perspectives and ideas.

In general, working with a business coach can be a great way to improve your business valuation, but it’s important to be open to the process and committed to making the changes necessary to achieve your goals.

How much does it typically cost to work with a business coach? And how does the cost compare to the potential benefits in terms of increased valuation?

Now, you might be wondering how much it typically costs to work with a business coach. You might also wonder how the cost compares to the potential benefits in terms of increased valuation.

The cost of working with a business coach varies depending on a number of factors. That includes the coach’s experience and expertise, the size of your business, and the specific services you require.

However, it’s worth noting that many business owners find that the cost of working with a coach is more than offset by the increased value that they can create for their business.

At Action Coach we have a range of programmes. The cheaper programmes are cheaper because there’s less 121 contact with our business coaches and that’s usually the case. The more expensive programmes increase the frequency of seeing our coaches 121.

For example, our “standard programme” is just £166+VAT per month. On that programme you’ll see the coach in our group sessions almost weekly and through our learning portal (digitally) as often as you like.

On the other hand, our 121 programmes start at £1333+VAT per month. They are more expensive, but you get regular 121 time with our business coaches.

For a detailed look into our programmes and prices just click here or take a look at the image below.

How can a business coach help improve my business valuation?

How can a business coach help improve my business valuation?

How can a business coach help improve my business valuation?

How can a business coach help improve my business valuation?