Business Value & Brand Value: How to find out what your business, brand, or idea is worth with Bharat Kanodia

Description

Value has become a buzzword in marketing. You hear all the time that you have to provide value for your audience and build a brand to make your small business more valuable. But how do you know the value of your business? How can you put a number on it?

Especially if you are trying to sell your business or are looking for financing, lenders, venture capital or other kinds of funding, you need to know what your small business, your brand or your idea for your startup business are worth.

In this episode, you’ll learn 3 approaches of how you can determine business value and brand value. (No knowledge in higher mathematics needed.)

Important takeaway: Marketing automation drives your business value up.

Here’s why:

When you as the business owner are strongly involved in a lot of tasks, your business is worth less for a potential buyer. If you are no longer there to handle critical pieces of the process, it’s a loss. For a potential buyer who wants to buy your business, this is a risk.

When you have a self-managing business on the other hand, that is automated to a high degree, there is much less risk. Having as many tasks as you can run on autopilot and handled by software instead of people, drives the value of your small business up.

Even if you are not looking to sell your small business at the moment, the principle is still true. That’s why thinking about leveraging automation is a smart thing to do.

Contact Us For Marketing Automation!

Transcript

Expand Transcript

Time Stamps

• 00:00
  Intro
• 03:21
  How do you go about determining the value of a business, brand or idea and why is it important to know the value?
• 04:35
  The income approach
• 05:21
  The comparison approach
• 06:31
  The startup approach
• 07:41
  How can I determine the value of intangible things?
• 09:43
  "60% of business owners are looking to retire and sell their businesses in the next five to eight years." What does that mean for me?
• 11:04
  Do you also incorporate the perception people have of a business or brand when determining its value?
• 12:37
  Do you experience it a lot that people confuse a brand with a logo, colors and things you can buy from a graphic designer versus the actual branding strategy?
• 14:50
  Most important takeaway
• 16:22
  How can people contact you, Bharat?

Watch The Interview Video

Resources, Links, Mentions and More

• Learn how to build a brand and create brand value: Take my free branding course Brand Story
• Watch Episode 3 of What's It Worth? on YouTube to learn more about what your brand is worth
• Approaches to finding out your business value and brand value:
• Income Approach / Asset-Driven Approach:
  the amount of income your business can expect to generate in the future, especially profit and cashflow, consider the difference between your business’s assets e.g. equipment, property, inventory and liabilities
• Market Approach / Comparison Approach:
  based on the purchases and sales of comparable busiinesses in the same industry
• Recreation Approach / Startup Approach:
  based on the costs of re-creation, meaning how much it would cost to recreate your business from scratch today
• Find Bharat Kanodia on his YouTube channel What's It Worth?
• Related Dragon Digital Marketing podcast episodes you may like:
• Episode #42: Storytelling In Marketing
• Episode #35: Branding For Small Businesses
• Episode #19: Personal Branding Tips
• Episode #14: How building a brand can make your small business crisis-proof