So why is it that valuation is so important from a business perspective? It is the ultimate measure. If you look at the big end of town, they have the share market and the share market describes the value of all those businesses that are listed on the share market.
If you’re able to understand what drives value into your business then you can use that as the ultimate tool to push your business forward using the Valuation Gap as a measure.
Another thing I would do is update the valuation for your business on an annual basis so that you can track the progress of your business from a valuation perspective.
That’s the first of the big three, stay tuned to explore the other two!