Want your business to endure? Then protect it from Murphy’s Law. This is risk management at its most basic.
Business Valuation
The Logical Buyer for Your Small Business
You can waste a lot of time fishing in the wrong spots. So unless you have plenty of time to waste, don’t start casting your bait until you have a good idea where the fish are biting.
When fishing for a buyer of your business, the first question you must answer is what kind of buyer is likely to be interested. If you go after the wrong type, you’ll go hungry.
How to Value an Intangible Asset
Appraisal methods that value the entire enterprise will yield a value that includes all of the assets of the business, both tangible and intangible. When this is the case, there may be no need to separately value individual intangible assets. But in two cases, valuation of a specific intangible asset may be merited:
How to Enhance the Value of Your Business
Enhancing the value of your business is primarily the process of stabilizing and growing your earnings stream. The investment world calls this “quality of earnings,” which simply means that the earnings are stable and predictable, i.e., devoid of large fluctuation from year to year. Earnings of this type are less risky for investors, will support higher levels of debt (if and when such are needed or desired), will put more money in investors’ pockets over time, and therefore will garner much higher valuation. Add consistent growth to the equation and value increases exponentially.
Growing the Value of Your Business
The financial markets are very efficient. Money flows in and out of investments with incredible speed as investors constantly seek to place their money where it will earn the highest yield. All investors are not right all the time, but as James Surowiecki compellingly argued in The Wisdom of Crowds, the “crowd” is almost always right as a group.
CASE STUDY: Use Cost-Volume-Price Analysis to Increase Profit
To show the importance of pricing decisions, this advisory will show how you can make money by selling a product for $15 when your average cost to produce that product is also $15.
Book Review: “Concise Overview of Business Valuation”, David L. Perkins, Jr.
Book Review: Concise Overview of Business Valuation. Certain concepts are really hard for me to grasp. Infinity. Light. The space-time continuum. Retirement. Business valuation.
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