How to value the ‘business’ of YOU

You may have heard the advice to think of yourself as your own ‘personal business’.

You bring in income. Expenses go out.

And, hopefully you make profit and accumulate assets over time.

So, here’s a question for you: if you were a business, how much would it be worth?

Obviously, there’s the net value of your assets.

However, when you look at the valuation of a business, another key metric of value is the amount and reliability of your future earnings.

Let me explain.

A bank is typically sold at up to 6 times what it earns, because the cashflows it receives are generally locked in by loan documents etc.

Meanwhile, a personal services type business is not sold for anything like that – perhaps 65% of annual revenue.

That’s because there is less guarantee of future cashflow. Who knows if the customers will all stick on?

The question then is…. how solid is your future income?

  • Do you have multiple streams of income coming in?
  • What can you do to increase your income?
  • How can you make your income more certain?
  • Are your skills replaceable by a Robot? Do you need to upskill?
  • Would it be valuable to create an extra income on the side through internet marketing or a buying a cashflow property to diversify your income?

Asking these questions will allow you to ‘future proof’ your income….and make the business of ‘you’ more prosperous and secure.

Hope this gave you some food for thought.


There’s a free webcast tonight to help you create more secure, passive income streams through property.

REGISTER: How to create secure passive income streams from real estate – webcast


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