Strategies for Building Business Value: Preparation for the Future
Summary:
In this video, Kerry addresses crucial aspects for enhancing the value of your business and why creating value in your business means more than merely having a well-paying job. Value focuses more on preparing for the future and the eventual transfer of business ownership.
Kerry presents key facts about the Australian business landscape, highlighting that approximately 2.6 million small businesses exist, with 60% owned by baby boomers, 76% of whom are expected to retire in the next decade. This alarming statistic suggests a potential loss of unrealised value and because of this urges people to consider the significance of being part of the 20% of businesses that successfully sell, as over 80% of businesses on the market do not find buyers.
Transcript:
I want to focus today on quite a few really important issues in terms of building the value in your business. It’s just to have a really high paid job, it’s about the value that you can transfer to the next owner of your business, whoever that might be. There are some really interesting facts that I want to share with you. There are about 2.6 million small businesses in Australia, roughly, I’m giving you round figures here. And 60% of those, in fact, are owned by baby boomers, of which 76% are expected to retire in the next 10 years. Now, that’s a pretty scary statistic, if you really think about it. What it means for these people is that there’s going to be a lot of money left on the table, millions and millions of dollars in unrealised value.
You may already know some people who’ve had their own business, and they’ve just shut the door because they don’t quite know what to do and that is so sad. On top of that, more than 80% of the businesses that go onto the market do not sell, which means that there are 20% that do. I am focused on that 20%, the people that want to sell and have one shot at selling.
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