Remove Balance Sheet Remove Cost Remove Sales Remove Stock Options
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Rules of Thumb Business Valuation Methods Explained

Up and Running

In order to avoid formal valuation report costs, shareholders utilize benchmarks of the industry and rules of thumb to estimate the ballpark values of their interests. It enables shareholders to estimate the rough value of their business quickly and cost-effectively. Where Gross Profit = Net SalesCost of Goods Sold.

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Should Startups Care About Profitability?

Both Sides of the Table

It was a stock option incentive related “expense” but I bet you didn’t know that because in an era where we only read the headlines — they must be a train wreck losing billions. The most obvious way to explain this is with sales people. COGS” represents the amount that each sale costs you. Two-f **g-billion!

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Why you should never have a data room — the most counter-intuitive fund-raising advice you’ll ever…

Both Sides of the Table

A detailed financial model that shows your anticipated revenue, costs and profits (Income Statement) as well as your balance sheet and cashflow statements. For starters you have to realize that fund-raising is a sales process. A brochure is an easy out for you in the sales process without being rude.

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What’s the minimum information to give your investors?

Berkonomics

Others worry that we will latch onto individual line items within financial data and engage in inquisitions regarding telephone bills, marketing costs and other tactical line items in detailed financial statements. The answer is that the minimum requirement is to provide an income statement and balance sheet to all shareholders annually.

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How much information do you give to investors?

Berkonomics

Others worry that investors will latch onto individual line items within financial data and engage in inquisitions regarding telephone bills, marketing costs and other tactical line items in detailed financial statements. That is one of the many costs of becoming a public entity as many CEO’s have found and dealt with over the years.

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Tips on Maximizing the Value You Get From Your Advisors

ReadWriteStart

These are people with whom you can share some type of value, but not tangible value like stock options or payment. Is your head of sales an asshole but growing your company 2X a year? constantly write it down the value of your exchanges, keep your own private balance sheet on those interactions.

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Flippers vs Keepers–At times earnings don’t matter

Berkonomics

They financed their companies, to the extent possible, in a manner minimizing the cost of capital, planning for organic growth in the number of customers served and in associated revenues. The Flipper’s executives usually have significant equity holdings, either actually owned or reflected in stock options.