An Easy Exam to Test Your Business's Health

When was the last time you had your blood pressure tested?

Taking your blood pressure is one of the first things most doctors do before treating you for just about anything.  How much pressure your blood is under as it courses through your veins is a reliable indicator of your overall health; and it can be an early indicator of everything from heart disease to bad circulation.

Does it tell the doctor everything they need to know about your health?  Of course not, but this exam is can give your doctor a good sense of your overall well-being.

Business owners can check their company’s blood pressure with something we call a Sellability Score.  Like your blood pressure reading, your company’s Sellability Score is an amalgam of a number of different factors and can help a trained professional quickly diagnose your company’s overall health.

Is Your Business an Elite Athlete?

When a doctor takes your blood pressure, they not only rule out nasty ailments; they can also gauge if you’ve been living a healthy lifestyle.  Similarly, your Sellability Score can predict good things for your business’ future.  For example, based on more than 10,000 business owners who completed a Sellability Score questionnaire, we know the average multiple of pre-tax profit they are offered for their business when it is time to sell is 3.7.  By contrast, companies that have achieved a Sellability Score of 80 plus are getting offers of 6.6 times their pre-tax profits.

In other words, if you have an average-performing business turning out $500,000 in pre-tax profit, it is likely worth around $1,850,000 ($500,000 x 3.7).  If the same company improved its Sellability Score to 80 plus while maintaining its profitability of $500,000, it would be worth closer to $3,300,000 ($500,000 x 6.6).

Are you guaranteed to get 6.6 times pre-tax profit if you improve your Sellability Score to 80?  No, but just like blood pressure, one little number can tell you a whole lot about how well you are doing and what you need to do to improve your company’s health.

Heart disease is a “Silent Killer” because most people have no idea they have a problem.  They walk around for years with dangerously high blood pressure because they never got tested.  The first step on the road to health is to establish a baseline and get tested.  If you have a great score, you can sleep well at night knowing you have one less thing to worry about.  If your score is not where it should be, then at least you can get started on improving your company’s health.

If you’re interested in getting your Sellability Score, please contact us.


Recent publications

Interactive Wealth Advisors is a Registered Investment Advisory firm in the State of Oregon and Washington. The Adviser may not transact business in states where it is not appropriately registered, excluded or exempted from registration. Individualized responses to persons that involve either the effecting of transaction in securities, or the rendering of personalized investment advice for compensation, will not be made without registration or exemption.
Schedule a Call Today
Book now
Interactive Wealth Advisors are committed to helping you reach financial freedom. If you are in need of financial advice, please complete the form below.