When I was a teenager, comic books cost $1.50 and as I pushed through high school the cost went up to $2.00 because of the addition of hologram trading cards and foil covers. I thought to myself “these are going to be worth so much money one day.” Fast-forward to today, I have over 300 comic books stored away in plastic. Some of these are even graded by professional companies, ensuring their “value” to another collector.
I have always thought of “worth” as “value” until I began working in finance. Only then did I realize that there was a clear and definable difference between the two words. Value is defined as “a fair return or equivalent in goods, services, or money for something exchanged”, while worth is defined as “the value of something measured by its qualities or by the esteem in which it is held”. We can place a value of $2.00 on a comic book because of the cost of paper, ink, and distribution. But to place a worth on my collection of comic books means that we have to account for the value of my memories, storage, professional grading, and inflation of the market.
How do you separate value from worth when accounting for something as large as a company?
Example: Owner 1 wants to sell his company to an employee with 20 years experience and loyalty and is willing to self-finance. Owner 2 wants to sell his company to a competitor. Both of them may be retiring but they both have separate motives for the value of their company. Owner 1 will lower the worth of the company because a legacy or nostalgia.
Finding a Chief Financial Officer with the proper credentials and certifications can be rather expensive for a growing company. But contracting the services from a Fractional CFO allows you to use the services from one of these individuals for a short period of time to get the company back in the correct direction.
Finally Resource Service Manager, usually comprised of former business owners, who have a network of individuals that are closely tied to specific industries and appraisers who can provide an accurate assessment of your business. This is like having a committee of business owners who can bounce ideas off each other to help you find the correct solution for the problems at hand.
Macto Business Alliance was designed to help businesses from across the nation get access to business resources. We ensure to find a source of financing, regardless of the lengths we need to go. With over 20 years experience combined on our team, we can find the right solution for you! Please contact us today for a free consultation about your business and how we can help you find solutions to your current objections.