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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. This article will cover all about the rule of thumb business valuation approaches, when to use them, and their pros and cons. Rules of thumb and business valuation.

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Why Misunderstanding Startup Metrics Can Cost You Your Business

Both Sides of the Table

There has been a lot of public debate over the past several weeks about whether it’s a good thing to be “gross margin positive” or not and commentary always reminds me that some people at startups don’t quite understand financial metrics or even how to think about which ones are healthy. Gross margin positive !=

Metrics 150
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5 Keys To A Viable Spending Rate And Cash Management

Startup Professionals Musings

Cash flow is a basic survival metric for every startup. Waiting until you have something to sell before bringing on a sales and operations staff. Getting a sales contract before manufacturing inventory. That should equate to an adequate valuation for a $2 million follow-on Series-A round, without giving away all the equity.

Burn Rate 258
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5 Ways To Conserve Investor Cash And Ensure Survival

Startup Professionals Musings

Cash flow is a basic survival metric for every startup. Waiting until you have something to sell before bringing on a sales and operations staff. Getting a sales contract before manufacturing inventory. That should equate to an adequate valuation for a $2 million follow-on Series-A round, without giving away all the equity.

Burn Rate 310
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How To Sell Your Business For Maximum Profit And Why It’s Best To Sell When Business Is Thriving

YoungUpstarts

EBITDA is the most important profitability metric to consider as many valuations are based on a multiple of this metric. Therefore, the higher your EBITDA is, the higher the price you can demand in the sale of your business. That being said, it makes sense that when business is booming, your valuation will be higher.

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5 Keys To Minimizing The Burn Rate For Your Startup

Startup Professionals Musings

Cash flow is a basic survival metric for every startup. Waiting until you have something to sell before bringing on a sales and operations staff. Getting a sales contract before manufacturing inventory. That should equate to an adequate valuation for a $2 million follow-on Series-A round, without giving away all the equity.

Burn Rate 223
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A 5-Step Plan To Assessing Your Business’s Sellability

YoungUpstarts

How do you find the balance between not too small to prove itself but not too big to have an off-putting valuation? Minimizing losses in the year before you begin shopping around for buyers will increase profit and help you get that higher valuation. Another important metric is churn. This plan will help you with that.

Valuation 145