Do you find yourself valuable? Of course you do, and truth is, you are. Your talents, skills, acquired knowledge all make up the value that you are. But do you have any idea how valuable you are? Probably no. Unless, you have been valued.
So what does it mean to be “valued”? Simple. It’s knowing what you are worth. As a person, you are an asset. An asset to the company you work for. Your value is your selling price. It may seem a bit odd if you take it literally, but if you look at it from a business perspective, the picture can be clear.
Companies are valued, too. In fact, you probably hear it half the time. Valuation determines how much a company is worth, and is done when one is to sell a company.
There are a lot of ways to value a company. And there’s no “right” way to do it. Valuation basically depends on one’s standard. Some specific criteria are set, and from there, mixing it up the way you want it yields the final value.
So where do you start valuing a company? Easy. Assets. Practically, assets determine how much a company is worth. In common sense, the more assets a company has, the more it is valued. Equipment, inventory, acquired businesses. Listing all of these down is pretty much the foundation of company valuation.
One of the biggest factor that affects a company’s value is its revenue. Half the time, businesses are valued at times three the revenue they make. But take note that revenue isn’t synonymous to profit. If company has a lot of revenue but, after the necessary deductions, yielded no profit, it’s not a good sign for the company. Valuing it may not show positive results.
Valuing a company can be pretty scientific for most people. It’s not exactly that easy to understand. That’s why there are valuation companies that exist to do the job that most people are finding hard to do. And we at Aviso make it our passion to help you with the most that we can. Give us a call and let us talk about your value.
