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How will a buyer value your business?  

Berkonomics

There is some latitude based upon the growth of the Company, using trailing (last 12 months), actual (fiscal year projections) and forecast (next twelve months or next fiscal year). The market sector in which the company works usually has a narrow range of price earnings multiples. 5 to 4 times gross revenues for similar businesses.

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Should you include your sweat equity in a business plan?

Berkonomics

But when forecasting the ultimate viability of a business, many times an entrepreneurial founder uses a low, unsustainable salary rate for him or herself in order to show early breakeven. But that is a messy way to demonstrate that you are taking less than market wages from your company. What are you worth to the business?

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Include your labor value in your plan.

Berkonomics

But when forecasting the ultimate viability of a business, many times an entrepreneurial founder uses a low, unsustainable salary rate for him or herself in order to show early breakeven. that is a messy way to demonstrate that you are taking less than market wages from your company. And that is the quandary for investors.

Salary 96
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Financial Planning For A Recession

YoungUpstarts

You should already be familiar with your key business drivers through a forecast sensitivity analysis – use this information to plan what to do in the instance of a negative shock, so that your decision making can continue to be swift and precise. This is the time to get ahead of your competition in terms of gaining market share.