Equity management can mean the difference between a business being bogged down for years or getting traction to expand. Consultant Chris Warrick outlines what to consider when assessing your own equity level.Equity usually ticks along in the background for most business owners but considering many of us farm to build equity, we should monitor and manage it.Covering the basics to get a common understanding, equity or net worth is the value of assets you own less the value of liabilities or loans you owe. In other words, if you sold everything you owned, paid out all your loans, what you would have left is called the equity. Expressed as a percentage for example, assets of $3M with loans of $1M would equate to 66% equity.
展开▼
