Join Whitney Johnson for an in-depth discussion in this video Valuing your company, part of Entrepreneurship Foundations.
- If you decide to take on outside investors,…you'll want to prepare.…There is no better way to destroy your company…and your sanity than taking money from someone…without having clear rules of engagement.…And this begins with you deciding…what your company is worth.…If your business is already established,…you own a restaurant, for example,…taking in outside investors…can be relatively straightforward.…To get a feel for evaluations in this context,…take a look at online marketplaces like BizQuest…and BuyBizSell…where you'll see that a restaurant generating…50,000 dollars in cash per year,…after expenses and taxes,…would be valued between 100,000 to 150,000…or two to three times cash flow.…
There are a variety of factors that increase or decrease…what an investor will pay for a stake in your business…like location, but this will provide you with…a starting point.…Valuations become much more complicated and subjective…if your company doesn't yet have revenue.…How then do you place a value on your company?…The first thing you have to come to grips with is that…
- Finding your idea/problem to solve
- Finding your first customer
- Writing a business plan
- Deciding on a legal structure
- Building a team of employees and advisors
- Marketing your business
- Building a website
- Minding cash
- Managing stress
- Funding growth
- Balancing entrepreneurship and life
Skill Level Appropriate for all
Financial Literacy: Reading Financial Reportswith Rudolph Rosenberg1h 25m Appropriate for all
Management Foundations (2013)with Britt Andreatta2h 9m Appropriate for all
1. Finding Your Big Idea
2. Starting Your Business
3. Building a Team
4. Marketing Your Business
5. Scaling Your Business
6. Funding Growth
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