Many readers of this column own investments. These investments run the gamut from stocks and bonds to real estate and precious metals. One thing these investments have in common is the desire of the owner that they increase in value over time. Income, while desirable and even mandatory, is usually secondary to the gain in value.

An exception to this paradigm of value understanding and expectation often lies with independent business owners.

Business owners may disagree strongly with my statement. Of course, they will say they want their businesses to grow in value. However, is this really the case?

The proof lies not in what is said but in what is done. This is a case of applying the axiom, “Actions speak louder than words.” What do business owners actually do to measure value and take steps to increase it? Sadly, the answer is usually nothing.

Why is this so?

My experience indicates that owners usually fail to think of their businesses as investments.

They may consider their business to be a job, a source of income, a source of pleasure and pride, and even their personal identity. Some view it as their vehicle for retirement income but do little to assure it will actually perform that function. When asked, many will confess they don’t understand business value, how to create it, how to increase it and how to actually capture it.

Rare are the independent business owners who receive more income from their business than they could earn working for someone else with the same zeal, commitment and hours they devote to their own businesses.

This is because not all the profit will be in the form of usable cash. There is also the risk and stress that comes from putting all the eggs in one basket: the business basket.

If personal income is the same or less than could be earned elsewhere, any economic return must come in the form of increased value, and that value must be realized at some point.

What is value? Essentially, it exists when the business income, after paying all expenses of operation and growth, provides a return on investment commensurate with the risk of operating the business.

I will never forget the stunned expression when a prominent business owner realized the return on his enormous investment was less than he could have received by putting the money in a bank CD. He realized he was taking great risk to earn a miniscule return and, in addition, his business had a low value because of the small return.

Professional investment advisers state there is a time to buy an investment and a time to sell that same investment. The same is true of a business if the owner wishes to minimize risk and maximize economic return.

An owner may choose to act counter to that advice, but that action should be taken on purpose and not by default because the owner did not know better.

Will this be the year you choose to look at your business investment? Will you get a handle on its real value and what you can do to increase it? Will you begin to develop an exit plan so you can realize that value at the appropriate time? Or will you wait till next year?

Bowser@BusinessValueInsights.com. Dan Bowser is president of Value Insights Inc. of Durango, Chandler, Ariz., and Summerville, Pa.