Business

Calculating the Market Value of Your Small Business the Right Way

Posted on by Travis Campbell

business valuation

Before you even consider hiring a business broker and selling your small business, it is essential to establish the accurate market value of your company and make an informed decision on what your next step should be. This business valuation might help you decide whether to sell your business or not, or it could ensure that you get a lot more for it than what you initially thought it might be worth.

One of the first things you have to look at is how your business has performed in the past few years (or right up to its inception, if it hasn’t been around for long) and see how quickly it has grown. The main idea behind this evaluation is that some business ideas are simply more successful than others, when set against the background of timeless trends, fluctuations of markets over the years, and the sociopolitical scene of the time. If your business was able to grow quickly with minimal investments, and it’s still achieving increasing profits each year, that means its market value might be even higher than you thought.

Another factor in the business valuation is the total financial worth of your company depending on the assets you own, the money you’ve invested and the debts that you still have to recover from. Depending on the actual dynamics of your business, your profit might fluctuate, but the ratio between the money you’ve put into it and your yearly profits will not change unless you do something to change it yourself – such as get a new loan or sell some of your assets. Because of this, the assessment of your debts, assets and profit (or lack thereof) will be one of the best ways to get a complete picture of how much your business is currently worth financially.

Of course, even a small business that sells simple, practical tools such as pens and pencils will be worth more than its mere financial assets. That is because small businesses have a lot of potential for growth in general, and you never know what will be the next big business idea that, when added to your business, will take you from earning a few thousands a month to making millions of dollars.  There have been countless examples over the years of simple ideas that have turned low earning and even mediocre small businesses into billion dollar enterprises in a matter of just a few years. So look at your business from a greater vantage point, if you truly want an accurate assessment of how much it might be worth.

There are many more ways to determine exactly how much your small business is worth and whether you should keep it or sell it. However, even if you learn about them, it will be a challenge to know which ones are actually relevant to the type of business you own or not. This is why it is essential to find a professional local business broker to help you out with all the evaluations and considerations regarding your company. Then you will be in a better position to make a clear choice about selling your business and even getting more money for it than you expected to get.

 

Why Should A Small Business Have Workmen’s Comp Insurance?

Posted on by Travis Campbell

Workers’ compensation insurance is a type of policy that is mandatory for businesses in many states, but the legal requirement is not the only reason why the policy is so important for businesses, especially for small enterprises. The coverage provided by the policy gives protection to the business itself as well to its employees – here are some things that you should know about workers’ comp.

Colorado workers compensation insurance

The Scope of Workers’ Comp Insurance

Workers’ compensation is the insurance for businesses that covers work-related injuries and illnesses as well as many of the related aspects. Most employers make substantial efforts to provide safe and healthy work environments to their employees, but despite these efforts, accidents can still happen. For example, if you are a restaurant owner and a member of your staff working in the kitchen cuts their finger, the medical expenses related to accident and the lost wages of the employee are covered for by the workers’ comp insurance. The coverage provided by the policy should not be confused with the coverage provided by the health insurance – if an employee of yours suffers the same accident in their home, the accident did not occur in the employee’s work environment, therefore the expenses will not be covered for by the workers’ comp, but by the medical insurance.

Workers’ comp insurance usually covers for the medical expenses related to the treatment of physical conditions that emerge as the consequence of the employee’s exposure to certain chemicals. The laws that govern that aspect vary from state to state, so before shopping for your workers’ comp, it is a good idea to familiarize yourself with the applicable regulations.

Who Needs Workers’ Comp

As a general rule, every business that has employees is required by the law to have workers’ comp insurance. However, the requirements regarding the insurance are mandated at state-level – in some states, for example, only businesses that have more than three or five employees are required to have workers’ comp. However, the policy is useful for any small business, even for the ones for which the acquisition of the policy is not mandated by local laws and regulations.

How to Get Your Workers’ Compensation Insurance

The best and easiest way to pick the Colorado workers compensation insurance policy that works best for your business is to turn to an Colorado insurance agent or to an independent insurance broker. The difference between the two types of professionals is that agents usually work for one insurer, while brokers work with multiple insurance companies, selling a wider range of products. Both types of specialists can provide you valuable information related to workers’ comp and they can help you choose the policy that suits your needs.

If your broker offers you multiple solutions, choose a policy offered by an insurer that has been in the business for long and has a good reputation, too. The insurance industry is stable in some states, but volatile in others, with insurance companies appearing and going out of business almost overnight, therefore it is in your best interest to buy your insurance from a company that is likely to be around for a long time.

How to Find a Great Office Space in Denver

Posted on by Travis Campbell

 

How To Find The Best Denver Office Space Rental

 

Are you putting the last touches to your plan of opening a business? There is one big step in this plan that you should prepare for carefully: finding a great Denver office space rental. Even from its early days, your business needs an office, even if a small one. You need a professional environment to meet with potential partners, suppliers, employees or investors.

 

How Hard Is It to Find Office Space?

The answer depends entirely on your budget. If money is not an issue, you can get settled tomorrow in a premium office building. However, this scenario is very unlikely, so you need to find an office that you can afford.

 

There are two ways to approach this issue. One is to hire a real estate agency to search for an adequate office space for your business. However, this can take some time. The smaller your budget, the lower your case will be on their priority list.

 

The other option is to start exploring your options on your own. This will take time, so make sure that you set aside an hour or two every day for office space hunting.

 

Now, let us show you where you must look:

 

  1. People You Know and Trust

The simplest way is to let everyone in your network know that you are looking for office space in Denver. Tell your relatives, friends, neighbors and even former co-workers. People hear of various opportunities all the time, even when they are not really looking for the information.

 

Make sure that you tell these people how much you afford to pay and what type of office you are looking for. You don’t want to get a recommendation for a container office, somewhere near a construction site, for example.

 

  1. Don’t Underestimate the Power of Social Media

Facebook and LinkedIn are particularly useful if you are looking for office space in Denver. A simple search will reveal pages for developers, business hubs and business incubators in your area.

 

The great thing about social media is that you are not fishing in the dark. Business pages have reviews and comments from other entrepreneurs who leased office space in those buildings. Thus, you can form a quick idea on how professional and affordable those office spaces are.

 

  1. Join Local Business Forums

Business forums are great online meeting places for entrepreneurs. They discuss and share advice on topics of interests, such as finding office spaces in Denver. Once again, you have the advantage of their prior experience.

 

  1. Search for Co-working and Shared Office Spaces

A simple Google search will show you all that Denver has to offer in terms of co-working spaces. This is a very flexible and affordable option if you have a small budget available and don’t need an office every day. Since this type of office spaces are rented by the day or by hour, you will pay only for the amount of time you actually are in the office.

 

Also, shared office spaces offer you great opportunities to network, attend business events, and find either business partners or employees for your company.

How You Can Save Money by Renting Temporary Office Space

Posted on by Travis Campbell

Denver meting rooms

Many small businesses conduct their day to day operations from offices located on their own company premises, even though they don’t really need the space and they suffer the unnecessary costs and hindrances caused by maintaining the office – if this is an issue you are confronted with, here are a few ways that you can save money by renting temporary office space and that will allow you to use your company premises more efficiently.

Paying Only for the Amount of Time that You Use the Office

Many temporary office space providers offer their rentals based on scheduling, meaning that you can schedule the time when you need the office and pay only for the amount of time that you actually use the office for. Many small businesses need an office only for staff meetings, for meetings with potential clients and for interviews – the office staff can do the rest of work just as efficiently from their home offices, so why set apart space that you don’t use regularly? Just have a look at what temporary office space providers have to offer, then do the math and you will see that renting the space will actually save you serious money on the long run.

Using Company Premises More Efficiently

This aspect is not strictly related to saving money, but renting the office space will allow you to make more use of your company premises, using your space for storage, for manufacturing or for whatever your core activity is. Having more space to focus on your core business will improve your company’s efficiency, so swapping conventional, on-site offices for rented space is likely to translate into more profit very quickly.

The Benefits of In-House Staff

Most temporary Denver meeting rooms are serviced, which means that they are not only equipped with the latest office technology, but also that there is support staff, such as receptionists and tech people present to help you, should you need it. This means that you can save money by not having to invest into office equipment or hire someone to maintain and update your own office equipment – everything is already there for you.

Flexibility

Temporary office space providers offer you the option to upgrade or downgrade your rented space the way it suits you. You can rent a small office for the time being, then, as your business grows, you can move to a larger space.

Calculable, Fixed Rates

With a rented office, you will know exactly how much access to and usage of the office will cost you. The rates you will pay the space provide do not change periodically – the office will not cost you more if the summer out there is very hot and the air conditioner needs to run all the time or if the winter is harsh and you need the heating on all the time.

More Business Opportunities

Renting office space in a building that you share with other businesses will increase the number of people that you meet, which will, in turn, increase the likelihood of finding new opportunities for collaboration with other businesses, so one of the ways that allow you to save money by renting temporary office space is access to more opportunities that you can pursue in your immediate environment.