Ep. #331: How to Project out the Equity Value of Your Business and Do Value Driver Scenario Planning

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Ep.#3 [THEME SIX]

Hosted by Ryan Tansom

Do you know if owning and running a business is worth it for you? I have been hearing that question a lot lately. Today’s episode is all about figuring out the best way to answer that question.

I have never met an entrepreneur or business owner that doesn’t know how to tell one hell of a story about where they have been, where they are, and where they want to go…however, I find most entrepreneurs don’t have the confidence to hit the throttle because they are afraid of the plan not working, running out of cash, and don’t have a clear sight into whether that plan will help them hit the future equity valuation they want in the future.

On today’s episode we have my new partner at Arkona, Joel Beyer, on the show. Joel owned a multigenerational company that sold to the private equity firm my other partner, Matt Buskirk, sold to (and ran). Joel truly understands what it takes to build a plan, execute like hell, and course correct as things change.

Today Joel and I talk about why the current method of planning, budgeting, and forecasting is broken, what it can (should) look like, and what to do about it.

Joel breaks down why it’s important to normalize all of your company data under one dashboard; how to get started collecting your data, tying the short-term plan to the long-term equity target, and how to create a rolling forecast that updates your plan each month based on what was actually accomplished; and then updates your plan and progress toward your long-term goal.

This was a super fun conversation that was heavily rooted in planning and finance…all without a bunch of financial jargon. I hope this helps you answer the most important question we all need to answer….“Is this worth it?”

WHAT YOU’LL LEARN:

– Why the current method of planning, budgeting, and forecasting is broken.

– What bad financial planning looks like and what needs to be done to fix it.

– How to tie your operational data, workforce data, and financial data together into a holistic plan that actually makes sense to the brain of an entrepreneur.

– How to create value drivers into your plan so you can clearly see where you need to invest and why.

– How to spot future bottlenecks or tight cash positions.

– How to get visibility into the tradeoffs between distributions, funding growth, and taxes.

– How to answer the question, “If I hit the gas on our plan, what is the future impact on cash flow and valuation of the company?”

– How to eliminate “spreadsheet hell” because you are creating spreadsheets that are in isolation and not tied to the financials.

– What makes up a good foundation to start your planning process to grow the equity value of your business.

– How marketing should be tied into your financials.

– The data sources you need to connect and use to predict your future cash flow.

– Why you can eliminate the drudgery of annual budgeting by creating a roll forward plan that is always updating your future plan based on what you actually did.

– How to make sure taxes are never a surprise again.

– The difference between a locked plan and a roll forward plan.

– How to use your plan when you need to pivot.

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By: Intentional Growth™
Title: Ep. #331: How to Project out the Equity Value of Your Business and Do Value Driver Scenario Planning
Sourced From: www.youtube.com/watch?v=Xmfz1mwYArM

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