Search: valuation

Sticky Questions on Startup Ownership and Buy-Sell

November 27, 2012

I received this interesting detailed question from the ask me form on my website. I’ve decided to answer it here. I think my answer might be useful for others with similar questions. I’m putting the question in quotes, paragraph by paragraph, and adding my response directly where it comes in the question.  It starts like [...]

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Q & A: Selling Out to a Partner

September 17, 2012

Question: I own a business with my brother for the past 16 years. I decided to buy my partner/brother out of the business. The business has been running a loss for the past couple of years. How do we put…

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Planning: Form Follows Function

September 14, 2012

(Rounding up my business planning theme this week, this is another excerpt from my book The Plan-As-You-Go Business Plan, which is posted complete online.) Your plan-as-you-go business plan is no more than what you need to run your business. In the beginning, it might be as simple as an elevator speech. Be able to talk [...]

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Is There a Tech Bubble? We’ll Know If It Pops

May 2, 2012

Earlier today I posted disruption vs. revenue and the tech bubble on the gust.com blog. I’m suggesting in that post that some special-case web-based startups have to choose between disruption or revenue, because they can’t have both. That may or may not be true, but I’ve been guilty of suggesting it is to a couple [...]

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Q&A: Valuing a SaaS Business

March 26, 2012

This question was posted on my “ask me” page on my timberry.com site. I can’t promise to answer all the questions I get, but I try, and I’m particularly happy when I get one whose answer might be useful to other people. So here’s a question: Do you have any idea how to value a SaaS [...]

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Is Your Startup Positioned in The Funding Gap?

December 7, 2011

Nice post by Bill Payne called The Funding Gap on the Gust.com Blog. Here’s the summary: It is clear from this table that Friends and Family, Angel Investors and Venture Capitalists provide 95% of the capital for new ventures. Friends and Family typically invest a few thousand to perhaps $10,000, and only a small number of [...]

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You Can Take Your IRR and Shove It

November 30, 2011

In pitches and presentations everywhere, bright young entrepreneur tells cynical skeptical investors, usually with great pride and flourish, about their fabulous IRR for their great new startup. I get a gag reflex. IRR stands for internal rate of return. You can check wikipedia or investopedia for what that’s supposed to mean and how it’s calculated. [...]

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5 Things Entrepreneurs Need to Know About Valuation

August 1, 2011

Valuation is one of those four-syllable business buzzwords you’re going to have to deal with, eventually, if you either want to start a business or own a business. If it doesn’t come up when you start, it will come up later. Here is what I think you need to know, in five short points. The [...]

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10 Good Reasons Not to Seek Investors For Your Startup

July 28, 2011

Sure, maybe you need the money. Maybe that’s what your business plan says. But seriously: Do you really want to have investors involved in your dream startup? I’ve said it before: bootstrapping is underrated. I get frequent emails from people asking how they can get investment for their new startup, and I’ve admitted to being [...]

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Half a Manager is Way Worse Than No Manager

June 27, 2011

So you’re in charge of other people. Your job includes their jobs. Your success includes making them successful. Congratulations. And good luck. That means you have to set expectations and follow up with encouragement, advice, collaboration, and honest evaluation of results. Your full job is inspiration and feedback. If you just provide inspiration, that’s maybe [...]

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