Inside Money Today

Lendinero's blog on Growing Your Business

Understanding the Importance of Net Revenues

Understanding the Importance of Net Revenues

Why are net revenues important to your business?   Net revenues can help your business in three areas:

1) Selling your business
2) Obtaining financing
3) Building reserves

When you want to sell your business, most buyers will want to acquire a business that has healthy net revenues.  Many times a business is valued by multiplying net revenues times 3 times or even as high as 8 times to determine the value.  Second, net revenues are important if you are seeking long-term financing with a bank.  Last, net revenues can help you build reserves for your business so you can save and have an emergency fund.

© 2015 Lendinero

Show Buttons
Hide Buttons