Solutions for Retiring Business Owners - Dead Inventory = Huge Value

Here is a simple way to increase your business value. Raid the inventory or old equipment that is not being used and sell it. Seems simple enough and probably long overdue. The added twist is, only designate the money to be reinvested in your business. Take the cash gained and put it directly into a high Return on Investment sales activity. Every business has one or two go to methods to make money or new sales. Facebook marketing, a Salesperson or a Direct Mail piece might be your quickest way to generate new revenues. Why you ask? Because sitting money creates no value. If you take $100,000 of under performing assets and sell them for $80,000. The $80k is then put to work and will generate new revenues. The importance to the overall valuation is this. Old inventory or equipment gets negotiated down during a sale. Example. Buyer says he will give you $50,000 for $100,000 for old inventory or old equipment. Why wait for this value losing event? Take the $80k in cash, and go create new sales revenues. Let's then say you get $100k back in new sales. On a three times multiple cash flow valuation method you may get $300k added to your business sale price minus the original $50,000 of actual inventory value. The $80k is then a great Return On Investment prior to entering into your sale of the business. Mick Feite - www.feiteenterprises.com