What is Your Company Worth?

Are you thinking about an exit strategy? Is your biggest asset---your nest egg---
wrapped up in your brand and your company? (For most small and medium sized
companies, the company has become the brand.)

Your Brand Equity is simply what it could sell for. Look at it from the other side of
the table. If you were considering two brands to buy---each competes in the same
field and has about equal sales. How would you choose?

My measure of Brand Equity is how much the brand will be worth in the future, not
what it could be liquidated for now. So you would choose the one that you could
bank on (!) to produce the most growing profits for a long time. Here are some
things you should compare:

1. What are their trends on sales and profits, and other assets and
debts?

2. How strong are their products? Any differences, any patents?

3. How strong are their organizations? Hirable?

4. Most important---what is each of their Brand Franchises? And
that is--
---How loyal are their customers?
---How enthusiastic are they? Would they care if the brand
disappears?
---What is their Brand Positioning? Is it unique and sustainable?

A brand is nothing more than a promise. It’s what you expect when you buy it,
based on previous consistent performance. What is your promise?

So what is your brand worth? Is it as much as your competitors? If this was a
horse race, who would you bet on?

The key to increasing Brand Equity is not just bigger sales. It’s building a stronger
brand. That is your greatest asset, the one you should nurture, the “family jewels”
that will give your nest egg the most value.