We don’t include a value for our business in the net-worth tracker. The reason for this is we just don’t know how much we could sell it for or if we ever would! It feels like a fake valuation and unlikely that we would actually get a value for it.
This would change depending on the size of business but if you have a multi-million pound business you probably already have financial advisors and don’t need us!
However, if like Katie’s company, we have a cash balance that will be ours (we just haven’t taken it out yet) then we include it after tax. So if we have £10,000 in cash in the business that we know isn’t needed and eventually we will distribute it we will take tax off (we use 20% as our estimate in the UK for our situation) and then add it to our net-worth. For this instance we would add £8,000 to our net-worth tracker under a newline entitled Business Bank Account.
The Rebel Business School has NEVER shown up in our net-worth because I can’t really put a value on it and I don’t own all of it.
Katie owns 100% of her company. We don’t put a value for the company but we do add in the cash balance with tax taken off.
If we ever did sell the companies it would be a nice bonus later on but we don’t rely on it. We look at what we have now in the financial snap shot not a future prediction.
We don’t put a value for Katie’s business as if she stops working in it then the money stops coming. Katie was a contractor and the business would die when she stops.

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