As an entrepreneur, you need to think about what affects the value of your start-up business over time, and any associated risk(s) for different types of investor.
Valuing a start-up business can be challenging because of the lack of historical performance data. However, there are a number of methods used to estimate the value of a start-up business. Ultimately, the value of your start-up is what an investor is willing to pay for a share in your business. Knowing what underpins value will assist you when considering investment offers.
At the end of this learning pathway, you will be able to:
- Calculate the break-even point for a business start-up
- Determine how potential investors value a business start-up
- Identify methods used to value a business start-up
- Consider factors that affect the value of a business start-up
As an entrepreneur, you need to think about what affects the value of your start-up business over time, and any associated risk(s) for different types of investor.
Valuing a start-up business can be challenging because of the lack of historical performance data. However, there are a number of methods used to estimate the value of a start-up business. Ultimately, the value of your start-up is what an investor is willing to pay for a share in your business. Knowing what underpins value will assist you when considering investment offers.
Objectives
At the end of this learning pathway, you will be able to: