Business Value Indexing and Analysis

Leveraging 30k of Income to a 1 million dollar Business


All of us are familiar how a duplex could be leveraged to a 4plex using it’s equity. What about a business?  And what about leveraging internal process and intellectual capital (intangible value pillars and drivers) for more value so you have more equity. Get an online complimentary review and see where we could start.

Let’s look at an internal business value leveraging example first. One could be found on page 12, of “14 Immutable Laws of Business Value”, however, let’s suppose a Business Owner spends $10,000 in new sales tactics to increase sales.  It worked.  $250,000 in gross sales came in and was added to revenue with 6% net profit. So, he added $15,000 to the bottom line. Now, what if the Owner invested the $10,000 into an earnings move to leverage intangible value pillars and drivers.  The move went something like (the A. I. software uses more variable and rules): increase price 3%, margin 3% and decrease advertising 3% resulting in the same revenue as above yet, this new earnings move had a 15% gain of net profit, and over $112,500 to business value.  Which move you would take? Get the A. I. software and system working for you and join us in an online complimentary review of your particular situation.

Now, from the bigger picture of a buy-out or merger. There are a lot of reasons someone might sell a business or buy another one. However, the leveraging model above is similar. Since, “leveraging is the fastest way to wealth”, by Warren Buffet why not use it with your business? Contact a Business Value Specialist for a spreadsheet of the leveraging model. They will explain it and give you examples and how you could use it to gain wealth. Contact us for an online complimentary review of your situation.