Looking for Funding for Your Startup? Know the Value of Your Business
An article from Mashable.com provides some tips for startup businesses that are starting the fundraising process in “9 Steps to Consider When Valuing Your Startup.” While the best way to really determine the value of your startup is to work with an experienced, certified, third-party business valuation expert, these tips can be helpful as you begin the fundraising process. Here are the highlights:
1. How much do you need?
2. How much equity are you willing to give up?
3. What’s the value of your intellectual property?
4. What’s the value of your other assets?
5. What are the barriers to entry in your market?
6. What’s the potential future value of your company?
7. How much traction have you gained in terms of customers?
8. Have you gained notable recognition in the market?
9. What’s your position in your marketplace?
For a startup company, a business valuation can also be used as a business performance indicator, reflecting the company’s direction. It can help business owners figure out what’s working and what’s not, and where resources should directed or re-directed. A valuation can also give a deeper, more complete understanding about the competitive forces and drivers in the business’s market.
Present Value LLC is a worldwide international appraisal and advisory company that provides a range of professional services such as Certified Machinery and Equipment Appraisals, Inventory Appraisals, Asset Verification Services, Business Valuations, and Real Estate Appraisals. Contact us today!
