Join Whitney Johnson for an in-depth discussion in this video Valuing your company, part of Entrepreneurship Foundations (2014).
- 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…
- Cite the steps that can help you find an unmet need.
- Differentiate between a business and a hobby.
- Recognize how to decide between an online business and a brick and mortar business.
- Describe how to protect your intellectual property.
- Explain the best practices for hiring the right people.
- Recall the importance of tapping into networks of expertise.
- Cite the best practices for building a business website.
- Summarize the best metrics to use for your online business.
Skill Level Intermediate
Management Foundations (2013)with Britt Andreatta2h 9m Intermediate
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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