http://blog.rianbowden.com Thu, 14 Feb 2008 16:41:06 +0000 http://backend.userland.com/rss092 en Eric Jordan, founder of Pure Edge suggests that one of the greatest realizations he came accross in building a new product for the very first time is the concept of a producer / consumer loop. Traditional perspectives of business models view producers on one side of the equation and consumers ... http://blog.rianbowden.com/business/entrepreneurship/bcom/producer-consumer-feedback-loop/ In any business you will have areas where you perform well, areas where you perform OK, and areas were you perform bad. In a franchise, this could be different levels of performance from individual franchisees. It’s probably going to be a normal distribution, with a few bad ones, a bunch ... http://blog.rianbowden.com/business/entrepreneurship/bcom/focus-on-strengths/ So you’re small and want to compete with Wal-Mart? Easy. Just don’t be Wal-Mart. Be Local When Wal-Mart came to Canada they changed the star in the middle of the name to a maple leaf and all the commercials said “working hard to be Canada’s Wal-Mart!” I’m sure they spent zillions on ... http://blog.rianbowden.com/business/entrepreneurship/bcom/small-business-can-be-competitive/ When valuing a business it may seem logical to value the entire company based on one factor; revenue. Some industries like professionals, hotels, and pubs frequently use this method of looking solely at gross revenue. They have a factor specific to their industry that they multiply by gross revenues to ... http://blog.rianbowden.com/business/entrepreneurship/bcom/business-valuation-gross-revenue-approach/ The cash flow approach to valuing a business looks at future cash flows of the business and discounts them to determine the value present value of the business. Adjust for Non-Cash Item You get cash from either the statement of cash flows in the operating cash flows section, or from the income ... http://blog.rianbowden.com/business/entrepreneurship/bcom/business-valuation-cash-flow-approach/ The capitalized earnings approach to valuing a business is the most frequently used approach and is almost always included as part of the consideration when valuing a business. It basically involves taking the earnings of the business and multiplying it by a cap rate, which is like the inverse of ... http://blog.rianbowden.com/business/entrepreneurship/bcom/business-valuation-capitalized-earnings-approach/ The market based approach to valuing a business is a highly subjective method of valuation. It draws what information it can from the market and applies it to the business. Use EPS and PE ratios It’s common to try to use the P/E ratio for the particular business sector the company in ... http://blog.rianbowden.com/business/entrepreneurship/bcom/business-valuation-market-based-approach/ An intuitive and very basic way of valuing a business is to look at how much its net assets are worth at fair market value. Balance sheets use historical numbers according to GAPP, but when you are valuing the items on the balance sheet it doesn’t make sense to use ... http://blog.rianbowden.com/business/entrepreneurship/bcom/business-valuation-net-asset-approach/ Determining the value of a private business can be a highly subjective process. Although private companies don’t trade shares, they still need to value their shares for many reasons including everything from raising equity to settling a divorce. Without the open market to determine share prices, we have to use ... http://blog.rianbowden.com/business/entrepreneurship/bcom/private-business-valuation-methods/ People looking at your business plan, particularly common and preferred shareholders will be interested in the overall performance of your business. These ratios offer a number of different ways to measure the success of your business to date. These are some of the important ones in business plans. Earnings per share ... http://blog.rianbowden.com/business/entrepreneurship/bcom/performance-indicators/