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Increase the Value of Your Business by 20% in less than a Year.

By david Zacarte, Sep 22 2014 04:44PM

Increase the Value of Your Business by 20% in less than a Year.


With the growth and foreseeable future of the Internet in 2000 and 2001, Financial Accounting Standards Board (FASB) changed how businesses can define intangible assets with the Statement of Financial Accounting Standards 141. It’s only a matter of time before the IRS adjusts for a business’s virtual intangibles relevant to a business’s value.


Many businesses already reap the Reward of owning a professional built interactive, user friendly, analytic website for their business. First Reward of owning a professional website, the most affordable, least costly form of marketing your business. Second Reward, the connectivity between your current and potential customers 24/7, with immediate cost savings. Third Reward, the immediate increase in the value of your business. (There are considerably more Rewards to having a business website. For the purpose of this article we’re only focusing on website value to business resale value.)


The minimal website value to business resale value is 20%. With many businesses reaching near 100% of total resale value through their website. Since many businesses have reached the 100% resale value via their website, such as non-inventoried mail order and publishing businesses as examples. Therefore, using current accounting Standards and market trends. Valuating your business resale value up by 20% determined by the overall value of your website, is facing head-on the reality of the 21st Century digital world. On the other hand businesses without a professional, brand/image, marketed, and analytic user friendly website, may be devalued by a minimum of 20%.


You want to retire or simply sell your business for a variety of reasons. John Doe walks in and asks your price. John Doe is 20-45 years of age. Next question from John Doe is, do you have a website for your business? As fast as you’re giving the answer with URL to your website, John Doe is viewing your website on his smartphone or tablet. Most likely and I guarantee, he’s Googling, Yahooing and or Binging your business website. Immediately he knows the ranking for your website, its speed, functionality to customer satisfaction (Primarily his) and a host of other important values relevant to a business website in today's rural, urban and world markets. John Doe will accept your price or a lower counter-offer based on what your current Web-Presence is. (Web-Presence is inclusive of but not limited to: Website graphics, User friendliness, analytics, SEO, Content, Interactivity or not, Speed, Layout, Linkage and more.)


Before you ask me the question, I can already give you the answer, NO! You can’t suddenly build your own or have a professional build a website for your business to immediately gain value and interest from a potential buyer of your business. Simply asking for your website’s analytics will tell the buyer all the facts about your website’s performance (At least in part. A large part.) The immediate value added to your business’s resale value from having a website is fact. But months and years of Web-Presence is vital to a registered value of 20% or better. However, having a professional website at all, is the first start and a bump in your business’s value, based on the website itself.


• Build a website yourself: 1-2% immediate value to business’s resale value.

• Have a friend or relative build your website: 1-5% immediate value to business’s resale value.

• A Professional website built: 10% +, immediate value to business’s resale value. This could be considerably higher based on the nature, industry and or geo-demographics of your business.


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