Business Planning and Valuation | Numerico | CPA Livonia


Very rarely is a company accidentally successful. To succeed and remain strong throughout ever-changing markets, you must have a solid business plan. The team at Numerico is comprised of qualified business consultants ready to put your dream into action with our professional business planning and valuation. Let us help you with the following business planning tasks: 


Estimate revenue weekly or monthly depending on the size of your business. This will be the basis of your yearly financial income projections. You can use the previous year’s sales numbers, the number of employees, amount of inventory you have purchased, or any special events that you know may occur. Track each month to see how your projections are comparing to actual sales and make adjustments to your plan. Do the same thing for your expense projections and billing. 

The accountants and business consultants at Numerico can help you create benchmarks for each area of expense. This includes fixed costs and the cost of goods. This will give you an idea of how your business compares to others in your area and industry.

Execution of Business Plan - Numerico


Now it’s time to pull everything together and execute your business plan. Keep track of your income and expense projections. Depending on your business model, you may also want to do a cash-flow projection. Find a system that works for you whether it’s daily, weekly, or bi-weekly. Take time to compare your actual sales and expenses to projections. 

Remember that the longer you wait to check in and see how you are measuring up, the less time you have to adjust your income or expenses. Do the same with your marketing plan. Always stay on top of what is supposed to get done and make this a top priority and part of your routine. Numerico can help you automate many of these processes to that your reporting is accurate, consistent, and collected in a way that doesn’t interfere with daily business operations. 


You’ll want to review your business plan often and readjust as necessary. Take notes on how things are working out. Measure your success and always be thinking of creative opportunities. Keep these detailed notes all in one place. Did you start too late for your back-to-school sale? Was one of your coupons missing a disclaimer that would have protected you from misuse? What can you avoid next year to increase your profit? What is missing? 

One of the most important things to record is what you did right. What will be important to repeat next year? As time goes on you will become more intuitive with your business planning and projections. Each time you plan should become more natural to you than the last time. It is okay if you don’t get it right. You are setting yourself apart as a financially fit business leader just by logging your progress.

If you’re just getting started and are still in the research phase, check out our information on starting a business. If you have an existing business you’re ready to take to the next level, browse our small business services by clicking the button below.

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Business Valuation - Numerico


Business planning and valuation can be tricky. No one agrees on the best way to do it for every company or industry. The business valuation services from Numerico take into account the many different factors that make your business unique. Some of these variables include demand for your product, service, space, the market, assets, debt, employee skills, and talent. There are many additional factors as well. How close the owners are involved in the business and what type of involvement they have is key. How the landscape of the business will change once they are removed also weighs heavily. 

Jay and his business consulting team can help you with determining your business’s value. They will analyze your business closely, study your operations and sort through your past financial statements to look at your businesses in a complete and multi-dimensional way. Some factors we analyze include:


Pricing is important and it is imperative not to price your business too high or too low. Either way, it is easy to scare off potential buyers. Your price is a reflection of your motive for selling and the state of your business. Obviously, net income is one of the first and last places a buyer is going to look. A buyer will want a long-range insight into the company’s income. They will want hard evidence to back up the net worth of the business. This will include tax returns and bank statements.


Adjusted net income is the amount of money a new owner will be able to “make” from the business once they own and operate it in their own way. The following items are added back to the net income of the business to become the adjusted net income:

  • Owner’s salary
  • Depreciation
  • On-time expenses such as equipment, trucks, etc.
  • Rent, amortization, interest
  • Possible human resource changes
  • Owner’s personal expenses such as auto expenses, entertainment, travel, pension, insurance, and more.
  • Tax write-offs that would not be there if the business had new ownership


Adjusted Net Profit X Profit Multiplier= Value

In the above equation, the “Profit Multiplier” will be different for any business.  It depends on the business’ assets and profit center. If you have a piece of real estate that is worth something now or in the future or if you are selling your business with many talented or skilled workers – those maybe your “Profit Multiplier.”

From a buyer’s point of view, if they pay $250,000 for a business and they plan to get a 20% return on their investment – that would be $50,000 per year. This would be a decent return and the new owner would earn their investment back in 5 years. This type of arrangement figured out prior to the sale may make the business worth more.


Another important factor in your business valuation is the deal structure/terms and what they mean. Will the seller receive all the money in one lump sum? With this kind of transaction, they may expect to get between 60%-80% of the sale price. 

If they take a down payment and finance the balance it would drastically change the financial picture and forecast for the new owner. For a business to be attractive, the cash flow needs to be able to support the price. As experienced business consultants, the team at Numerico can help you structure the terms of your deal so that it’s simple, easy to understand, and most importantly – profitable.

Small Business Tax Strategy | Numerico, Certified Public Accountants Livonia, MI

Numerico has a team of professional CPAs in Livonia, MI who are experts in helping local small businesses with their tax strategies. We know you run a business and taxes can be overwhelming at times, so let us help!

Our goal is to make sure we have your small business taxes taken care of, from minor to major changes and updates. We’re experts in small business tax strategies, so you can be experts in your business. Learn how we can help. 

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If you’re considering starting a business or selling one, consider the expert business planning and valuation services of Numerico. We’ve been building powerful relationships with our clients in Livonia, Canton, Dearborn, Van Buren Charter Township, Farmington Hills, Ann Arbor, Madison Heights, Westland, Novi, Northville, Plymouth, Bloomfield Hills, Auburn Hills, MI, and throughout the United States since 1980.

To schedule a consultation or to ask any questions, we encourage you to contact us. Fill out our secure online contact form or call us directly at (313) 278-8030. We look forward to speaking with you!

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