Why it’s Good: A reminder that you can’t believe everything you see.
What it is: A 3-minute video, decent quality, that will destroy your ability to sell if you believe it.
As we watch more and more online content about selling a business, it becomes easier to understand why so many business owners are so confused about the value of their business.
Take this example.
Decent quality video, with good content up until about 1:00 when it goes horribly wrong.
Money in the bank and money invested in a small business are not the same thing. The risk is dramatically different. The video states that your multiple might be around 10X earnings. That’s crazy.
Granted, this video states it’s just a “super-simplified story”, But in simplifying it creates a crazy inaccuracy, and it never calls out the wildly inflated valuation (yeah, we caught the “might be lower’ at the end — way too late) .
My business is worth 10X earnings. A buyer should view my business like putting money in the bank. If you believe these things your ability to ever sell your business is at serious risk.