Tag Archives: small business valuation methods

Why You Need Standard Operating Procedures (SOPs) In Your Company?

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Why You Need Standard Operating Procedures (SOPs) In Your Company?

  • A structure for growth of a company
  • Based on set of policies, standards, and procedures the organization needs in the management and operations of the entire organization.
  • Work flow in compliance with regulatory needs.
  • Explains the practices of each and every department in the organization.
  • Ensuring you produce products and services that meet the quality requirements of your business
  • Employees work towards achieving objective of business
  • Achieving customers’ satisfaction .
  • Achieve consistency in carrying out a particular task or activity in order to reduce chance of error or mistakes.
  • Train new new employees based on their roles by providing standardized training for employees there by saving training cost for company.
  • Provide clear information about how to execute jobs of employees
  • Provides critical information to people in company a complete visibility of their responsibilities and accountabilities.
  • A guide to tackle operational difficulties caused due to impact of unprecedent events like virus outbreaks or accidents etc..

Reasons To Value Your Business

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    • For Knowing the worthiness of your business professionally instead of Ballpark Guess.

    • For Mergers and Acquisitions

    • For joint venture arrangements (JV)

    • For Exit Strategy Planning.

    • For tax planning purposes- Gift and Estate tax.

    • For Bank financing or alternative investment or attracting investors

    • For ascertaining True Value of Company either to known own net worth or for resale.

    • For Litigation or disputes by shareholders or partners to determine economic damages, lost profits or/and uncovered fraud

    • For Family succession planning and/or inheritance or personal events such as marriage/divorce.

    • For valuing the business for a restructure or bankruptcy.

    • For identifying weaknesses of business to refocus the operational efforts to improve profitability and the bottom line.

    • For determining Intrinsic Value vs. Fair Market Value of the business.

    • For ascertaining the purchase price after an acquisition of a business.

    • For knowing the value of business with patents, trademarks, copyrights, proprietary processes, Goodwill etc

    • For knowing the value of business to decide the coverage needed while buying Key Man Policy for Partners/Directors if something happens to them.