Hi folks, Paul Morin here. I had the pleasure of interviewing Robbie Clinger, business valuation expert, regarding how companies are valued and other related topics. (See below for a list of the topics covered.) We tried to keep the content relatively basic, for those who have not had much exposure to valuation, but a good bit of the content will be relevant not just to newbies or startup entrepreneurs, but also to established entrepreneurs who are wondering what their company is worth and/or considering exiting their business.
During the roughly 45 minute interview, among other topics of interest, we covered the following:
-What is business valuation?
-Why should you care what your business is worth?
-How early should you start planning to maximize the value of your business?
-What are the three main approaches used to estimate the value of a business?
-Which approach is most relevant for early stage businesses?
-What is a discount rate and how is it used in valuing your business?
-What are the common situations where a business owner needs a valuation of their business?
-What are the common exit strategies for business owners including, selling the company to another company or individual buyer?
-What is the difference between a financial buyer and a strategic buyer?
-What is an ESOP?
-How are entrepreneurs funding the startup and/or growth of their businesses these days?
-Is it possible to fund your business with money from your 401k?
-What are some of the key issues with funding your business this way?
-What is the status of the SBA lending program these days?
-What are some of the issues with this type of funding?
-How important is planning in the business startup and growth process?
-Several other relevant tidbits.
A while back, Robbie and I were in business together, and we have known each other quite a long time (roughly 10 years). I have a lot of respect for Robbie and believe that the info and insights he shares in this interview will be of value to entrepreneurs in the process of starting, running and maximizing the value of their small businesses. You may access the interview by clicking the link below — no registration required. Please feel free to leave a comment and let me know your thoughts. Also feel free to Tweet it, Like it and send it out to your friends. I think you will find the content very informative.
Paul Morin – Robbie Clinger Audio Interview [click this link to access the audio interview]
Yours in entrepreneurship,
Paul Morin.
Owning a business is really a big challenge because you are the one who is responsible to expand your business and it depends on your hand if your business will become successful or not.
Agreed, John. It’s a double-edged sword — you’re to blame whether things go well or they go badly! I wouldn’t trade it though!