Business Appraisal FL|GA|HI (BA FL|GA|HI) stays on top of business valuation trends. The unpredictable 2021 pandemic has changed the valuation of many businesses. BA FL|GA|HI will keep you updated as we monitor the global business valuation environment and report our findings back to you.
As a business owner, you are fully aware of the key success factors (KSF) of your business and industry. You know your staff, your customers, and your competition. But do you know the value of your business? Because you’re supposed to. Business appraisal is such an important phase in business ownership that many individuals tend to overlook it.
Effective business appraisal is required if you want to ensure that you’re on the right path to success. Many company owners consider their firms as their retirement nest egg. In addition, why wouldn‘t you check on the status of your business regularly if you wouldn‘t go years without monitoring your Roth IRA? This is an essential understanding necessary for adequate preparation.
On the other hand, if an unexpected purchase offer for your business comes through, you may need to know the valuation of your business at a moment‘s notice in order to make the right decision. Additionally, business valuation can also be beneficial in unfortunate circumstances, such as a divorce or the sudden need to sell.
Although the appraisal process may take time, which may not be available, many people wrongly assume that their balance sheet is indicative of the worth of their business; however, this could not be further from the truth. The value of a business involves much more than the balance sheet. It includes intellectual property, reputation, assets, trade secrets, cash flow, and more.
That being said, many factors go into an effective valuation. We’re in the middle of a crisis. Thus, it is essential to know that the variables and factors that make up a business appraisal change year to year along with the global economy.
Important Reminders in 2021
As the full economic toll of the coronavirus continues to come to light, so too is the normalization of what life may look like once the ongoing pandemic presumably fades. A recent study conducted by the University of Central Florida Institute for Economic Forecasting predicts that Florida‘s economy will fall by 6% year–on–year in 2021 but is projected to recover by 7.6% the following year. Additionally, certain characteristics of Florida businesses may make them particularly susceptible to new trends.
One example is the state‘s low taxes which continue to bolster our economy and attract billions of dollars in international and domestic investments annually. Furthermore, Florida provides a cost–effective alternative to more expensive countries like California, Illinois, New Jersey, and New York due to its more economical property, labor, taxes, and capital. As an added bonus, the State also includes additional tax benefits for companies in certain markets or specialized areas.
Aspects Unique to Online Businesses
Now more than ever, your online presence has a critical role to play in the marketplace. It is possible to operate a multimillion-dollar business from your home utilizing a virtual warehouse without ever meeting a client face to face. You have the ability to attract thousands of consumers every day with a small monetary investment. As online‘s share of overall retail revenue has continually increased, e–commerce penetration surpassed 16.0% in 2019, as reported in the Digital Commerce (formerly Internet Retailer) review of the Commerce Department‘s year–end retail results. That was up from 14.4% in 2018 and 13.2% in 2017.
Florida is the “home” of home flipping. The home flipping industry gives a major boost to Florida’s economy. The estimated home valuation in Florida is $233,700. In 2019, Florida home prices have increased 6.3% from the previous year and are projected to rise an additional 3.6% in the coming year. The median price of the properties currently listed is $295,000. This allows space for investors to make a profit off a real estate flip. Houses get bought up within days of being listed, as the demand in the housing market continues to skyrocket.
As online‘s share of overall retail revenue has continually increased, e–commerce penetration surpassed 16.0% in 2019, as reported in the Digital Commerce (formerly Internet Retailer) review of the Commerce Department‘s year–end retail results. This will draw a lot of attention to Florida, possibly increasing rent for brick and mortar stores as well. We here at Business Appraisal Florida are closely watching the effects of this surging industry and the value of contractors and services that feed upon it.
Cyber Security and Compliance
The cost of cybersecurity is going through the roof. The Wyndham Hotel federal court decision that gave the FTC the power to enforce strict security regulations on businesses that handle sensitive customer information has created a massive investment in Cyber Security Compliance. Businesses that offer Cyber Security and training are seeing an increase in revenue.
Local Trust and Relationships with Customers
Americans are starting to recall the “good old days” and are concentrating on buying local and helping small businesses. Floridians are continuing to have less and less trust in major brand name companies. The huge migration of industrial and service workers abroad has left a sour taste in the mouth of consumers. Local customers will continue to seek out and help businesses that benefit their local neighborhoods through job creation and friendly ownership.
Mega–corporations have hacked consumers‘ precious information, causing them to become fed up with trusting them. Florida businesses have something these large companies don’t have: community reputation and trust. You’re not simply building a reputation. You’re creating value. Your collective credibility can be invaluable to you. Business Appraisal Florida’s goal is to help you monetize your company’s Goodwill.
Contact Business Appraisal FL|GA|HI for a No Cost Consultation
An accredited or certified business valuation provides value to you and your family. Family members and partners may have emotional ties to your business that cloud your view of your company’s value. Despite the difficulty of putting a price on something so treasured, we will conduct a thorough examination of your business in order to accurately evaluate it in this ever-evolving marketplace. We have been providing Florida businesses with valuation services for over seventeen years. Trust Business Appraisal FL|GA|HI to provide you with a reliable and dependable valuation.