Are You Ready to Start Your Own Business?

Written by Finance Video. Posted in Business appraisal, Small business valuation calculator, Small business valuation tools

Business appraisal

The letter that arrived the day after the 2016 Presidential election is what started the tears. Those tears, however, were what made you even more determined to move on with your plan to continue working with the business valuation services and determine a fair offer. You had been thinking about buying the local gift shop for the last few months, but that letter and the tears that it caused were the motivation you needed to finally make the decision to go into business for yourself.
That letter, more than anything else, seemed to symbolize the frustration and anger that you had been holding back all day, and the decision to go forward with your personal business and financial goals seemed to be the best way to respond to the frustration and powerlessness you had been feeling.
Addressed to your husband, the business sized envelope from your Dad seemed both harsh and hurtful.
You knew of its contents. On the third of fourth phone call from your dad when he abruptly began his call by asking to talk to your husband, the frustration was first formed. You knew from the follow up talks with your husband that your father was closing out an investment account that was intended as college funding for your two daughters. And while you were thankful for his generous gift, you were frustrated that the checks to your daughters were arriving in an envelope that only listed your husband.
The message was clear. This had to do with money, and to your father, those were issues that could only be handled by your husband.
This letter, combined with the frustrating results of last night?s election results, was the straw that broke the camel?s back. You were hearing from the national election results, the simple letter in the mailbox, and the voices in your head, that you lived in a world that made women second class citizens.
Are You Ready to Take the Information from Local Business Valuation Services and Make the Step Toward Owning a Business?
Nothing can make you feel more confident in yourself than starting your own business. Taking a skills that you have and turning it into a way to make a living can be a liberating feeling, even in the most challenging of times. If you want to begin your business, however, by purchasing an existing enterprise it is necessary to determine the value of the current business before making an offer. With the use of business valuation services you can use either the valuation income approach, the valuation market approach, the valuation comparable approach, or a combination of all three to determine the most accurate worth of a current company.
And while some investors purchase small business valuation software to determine these worths themselves, others rely on experienced professionals at business valuation services firms to get the information that they need.
If you are considering purchasing an existing business and starting off on your own you may find it comforting to know that currently there are 21.1 million U.S. firms without employees. This translates into a whole lot of other people who are attempting to do what you want to achieve. Working with a network of other small business owners, in fact, can serve as a valuable resource in making the decision about what to pay for an existing business. For while you may come to your new business with a wealth of expertise and experience in your particular sales or service niche, you may not understand the necessary details of purchasing an already existing business.
The bottom line, however, is making sure that you do not pay too much for the initial purchase, knowing that you will need plenty of financial resources for the rest of the start up process. For the most part, determining the value of a business is largely an exercise in economic analysis. Interesting enough, the company financial information provides the most basic and important part of the valuation process. The two main financial statements that are needed for business valuation, of course, are the income statement and the balance sheet. To obtain the most valid estimation of a small business value, in fact, consult three to five years of available income statements and balance sheets.

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