7 frankly wrong reasons to become an entrepreneur
Every entrepreneur becomes such, based on their own reasons. Most of them claim that they were guided by their vocation, passion for this activity, or decided to deal with the…

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How to protect against bankruptcy new enterprise
No one can be prepared to fail. Even those who seem to be ready for this can get a serious blow. Lack of money is the main obstacle to the…

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Preparing a business for the holidays: how to "seduce" customers using social networks?
Have you already thought about how to build a festive advertising campaign using social networks? At the beginning of the holiday season, the demand may not be so great, but…

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How to evaluate a business?

The question of competent assessment of business today is more relevant than ever. Indeed, in a recessionary economy, business efficiency is equal to its market value. And business owners are “fighting” over key indicators. In addition, these indicators are extremely important if you plan to acquire a new or sell an existing business.

You must have come across a certain “business slang” that is often “Americanized.” It comes to the fact that in Ukrainian and Russian languages ​​use the terms: costs (costs), fixed assets (fixed assets), etc. Similarly, there are a huge number of tools and indicators for business valuation: P / E-ratio, enterprise value (enterprise value, or EV), net cash flow (free cash flow, or FCF), etc.

This list is quite large and can confuse a novice businessman without special education. Fortunately, there are simple and logical business valuation rules that can be used in a dynamic business environment. Think about them when you think about your next cash investment.

Way of doing business
First of all, you need to understand and understand how the business attracts (in the case of startups, it is going to attract) new customers. What media are used at the same time, what advertising campaigns, what texts will help in this business and what the total cost of one client will result in. These things should be well thought out and realistic.

The next thing you need to know about business is how you plan to retain attracted customers, with what additional products, services and prices.

You need to consider the estimated cost of each client, depending on the media and advertising strategy in the first and subsequent years. It is also necessary to understand the product, why there is (or will be) demand for it, and what competitive advantages a company has with its product.

Industry Perspectives
This rule is as important as the first, and maybe even more important. Understanding the industry is often quite difficult. Each industry has its own dynamics. Retail, manufacturing and wholesale sales have different business processes and differ from each other. Within each industry, there are sectors that also function differently.

Clothing stores and bars are two examples of retail businesses that require a different approach. For example, stocks are a complex and critical business element for clothing stores. At the same time, it is not such an important factor for the normal functioning of a successful bar.

How to choose a franchise
Franchise has many advantages over other types of business. But for the launch process to be really successful, you should pay attention to some important points. Start-up entrepreneurs who want…

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5 ways to make your business more efficient
It's no secret that many launch an online store as a side activity, in addition to their main job. Naturally, at this stage, few people perceive it as something more…

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Uninvented story: as a business newcomer to get the first customers
When a completely new player enters the market, obviously, he is not at all threatened by great popularity. Moreover, even the search for first customers is often similar to the…

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How to avoid common mistakes when creating a startup?
1. Raising your own talents Along with the fact that financial problems are increasingly fading into the background, the demand for highly qualified specialists is growing. One of the possible…

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