As a business owner, you might have heard the phrase ‘business value’ thrown around a lot, and for a good reason. Knowing how much your business can sell for at a given moment can play a significant role in shaping your financial decisions.
» Want to know what your business is worth? Click here to find out.
This is where the repair shop business valuator by AutoLeap, a leading software for auto repair shops, can help you out. With a simple 6-step process, you can determine how much your auto repair business is worth.
What metrics do you need to work out your business value?
To get an estimated value of your business, have the following metrics ready:
- Revenue: The total sales you generate in a year, without subtracting expenses.
- Cost of sales: All parts, supplies, labor, and other material that tie directly to a job come in this category.
- Overhead expense: Those expenses that cannot directly be tied to a job including rent, utilities, and administrative salaries. Interest, taxes, vehicle depreciation, and amortization.
- Value of company assets: This category includes the present value of everything you own in your business. Think of which assets would have monetary value if you sold your business today.
How a good business valuation calculator can help your shop
Calculating the growth of your shop is more complicated than simply looking at revenue or the number of vehicles serviced. A valuation estimate will let you track growth with a greater degree of accuracy by accounting for the factors discussed in the previous section.
Additionally, if you’re planning to sell your shop, you’d want to get your money’s worth. A quick online valuation can give you a ball-park figure that you can use to start negotiations.
Closing thoughts
A repair shop business valuator is a simple to use and effective method that can give you a lot of information in very little time—something that is invaluable in the fast paced world of today. Try it for free today!
*Disclaimer: The information provided in the valuation calculator is an estimate and is not a representation of the actual financial standing of your business
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