For business owners, startup valuation is a topic that causes lots of angst, raises tons of questions and definitely gets the emotions blazing. But let’s take a step back. Why are valuations even important? They are what an investor, acquirer or the public (in an IPO) is willing to pay for your business. They are based on intangibles such as the quality of your founding team, the size of your market opportunity and how hot the space you’re focused on is.
One question everyone asks is what investors look for when deciding whether or not to fund a startup. Having a high-caliber team with a good track record and a clear value proposition are givens. But the bottom line is that it comes down to the numbers. VCs are looking to make investments that pay off big. That means you need to develop credible financial projections that demonstrate the viability and future potential of your target market and clearly spell out how investing in your business will achieve their return targets.
I've found through my own business and working with others that managing using scorecards and metrics is a much better approach. It allows everyone to understand the organization's main objectives. And when scorecards and metrics are properly aligned with company objectives, the results can be powerful.
Using online tools is a great way to automate your marketing efforts, saving you a ton of time. You'll be able to manage your social media accounts, schedule blog posts, update your website and more importantly, measure key metrics.
It's easy to get caught in these outdated financial "tips" that do more harm than good for your business. These 8 successful entrepreneurs set the record straight.
chatCONTACT US today for a free consultation to discuss the financial pain points of your business.