The Art of Making Money: The 12 Rules of Herbert Casson
A question that worries many and which is impossible to give a definite answer: on what does business success depend? Is it really that Her Majesty Fortune is more favorable…

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Tell STOP "burning time": how to effectively organize yourself
There are two types of people: the first ones like to keep track of where and why they spend their time, and the second, most likely, passively follow what the…

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Successes and failures of crowdfunding: examples, causes, investigations
Despite the fact that crowdfunding in the Internet business has existed for about 15 years, the real success and relevance to this method of attracting investment came relatively recently. Many…

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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.

The phenomenon of demand: how to become a visionary of consumer desires?
“Five or six years ago, leading business thinkers surveyed by our company noticed an increase in instability and predicted a crisis,” says Adrian Slivotsky, who is also a member of…

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How to become Zuckerberg: 7 acts of the founder of Facebook
On May 14, Facebook founder Mark Zuckerberg turned 29 years old. What you need to be to get a chance to become Zuckerberg? Here are seven actions and human qualities…

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Pros and cons of sharing business with your loved one
You need a plan of action if you nevertheless decide to engage in a joint business with your other half.Therefore, considering the option of creating a new project, it is…

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Useful life hack. How to promote an Internet company to Western markets?
Sooner or later, many companies are faced with the problem of the need for growth and development. In this situation, you can choose either the expansion within the same market,…

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