JitMark

What is Your Business Worth?

Imagine having a remote control on your desk.
Press one ‘button’ and Your Net Income jumps 10%.
Press another, and Sales increase 10%.
Which button do you press, and why?

If you answered Net Income, you're like most business owners. Net Income is ‘bottom line.’ Yet simple business valuation formulas, used by Merger & Acquisition firms, prove accelerating your rate of sales growth always has a greater impact on the value of your business than increasing net income.

The Valuation Formula

The formula is: Value equals Income, divided by the Risk associated with your business, minus your rate of sales Growth.

Typically your advisors – bankers, lawyers, CPAs, M&A firms – will help you streamline operations, and reduce operating expenses, to improve Net Income.

But the fact is: nothing accelerates Valuations faster than jump-starting sales Growth.

Example: Assume your Income is $1M, the Risk factor for your business is 30%, and your rate of sales growth is 5%. The Value of your business, by formula, is $4M ($1 million divided by 30% minus 5%). Now, assume you improve your Income 5% each year for three years, and your Risk and Growth rate remain unchanged. By formula, the Value of your business increases to $4.6M.

However, if your Income is unchanged, but you increase your rate of sales Growth 5%, the Value of your business over three years will jump to $5M ($1 million divided by 30%-10%).

What's more, if you do both - improve Net Income 5% each year and accelerate sales growth 5% - the Value of your business will skyrocket from $4M to $5.8M in just 36 months!

Obviously the actual Value of your business is determined by the Market – what are buyers willing to pay? But this simple formula is a great starting point in understanding, and improving the Market Value of your business.

How can you accelerate your rate of sales growth?

Riverside's Just-In-Time Marketing (JitMark^SM) may be the solution. The JitMark process begins with a quick launch of several sales and marketing tactics designed to immediately get your message in the hands of buyers. Within 50 miles of your office there may be hundreds of buyers who need your products or services, but they've never heard of you. That spells OPPORTUNITY.

JitMark helps you cash-in on this opportunity by identifying these prospects, and ensuring your message is in their hands month-after-month-after month. Within 12 months there may still be prospects that aren't buying from you… but there won't be any that haven't heard of you.

Compare Riverside's JitMark to other Sales and Marketing services, and you'll discover 5 + 1 key benefits

JitMark's focus is the long-term Value of your business – not one-time sales campaigns
JitMark's emphasis is Executing Simple Tactical Plans – not six-month ‘strategic’ exercises
JitMark addresses both Sales and Marketing – not simply ‘Brand Positioning’
JitMark delivers the Experienced Resources you need… when you need them – Just-In-Time
JitMark's integrated 3rd Generation Print Technology enables you to afford the B2B marketing materials it takes to be effective

…and, we deliver 1 more unique benefit

As you achieve success, and your marketing needs grow, we then help you establish an in-house marketing organization to replace JitMark. Having used JitMark to test the impact successful marketing can have on your business, you'll have confidence to commit to an in-house department that will give you an edge in the marketplace, and dramatically add to the Market Value of your business.