7 Facts About Profit

“For me, it’s not about the money.” I was talking to a client about how to increase profits dramatically.

“What do you mean?”

“Well, I don’t want to be greedy and make too much.”

“So, how much is too much...?”

I didn’t get an answer. I never do. I know that some people (hopefully a small minority) are put off by my constant emphasis on making money. I know that because, as a business coach, I have talked with hundreds of small business owners about profit and have often had conversations like the one above. It’s as if the speakers feel guilty about making a profit or that it is somehow noble to loathe money...

GUIDANCEMartin HollandFebruary 6, 2019PROFIT, GREED, CHARITY, ALTRUISM, EARNINGS, PHILANTHROPY, MORALITYComment

How to Think Like Business Buyers

The value (price, if we’re selling) of a business is what a willing buyer and seller agree it to be. However, assuming both parties are informed and rational, the value of most small businesses is calculated by multiplying annual profit times a “multiple.” The multiple is a number that reflects buyer confidence and often falls between one and seven. So, for example, a business with annual profit of $100,000 at a multiple of two would be worth $200,000.

VALUATIONMartin HollandMarch 27, 2017EBITDA, MULTIPLE, BUYERS, SELLERS, DEPRECIATION, AMORITIZATION, PROFIT Comments