Do Business Well

You’ll need to decide before opening the business what form your business will take. In the United States there are four approaches available. In other countries it will be necessary to check with local resources to determine the choices offered.

Sole proprietorship. Most very small businesses use this enterprise type. It is the simplest from a tax and legal standpoint. In many cases part-time businesses using the sole proprietor approach will not even segregate their personal financial affairs from their Continue Reading »

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ASSET VALUE

For most companies the asset value should represent the lowest amount below which the owner might just as well liquidate. There are only two differences between asset value and liquidation value. In calculating asset value you don’t have the costs of liquidation and you can be more generous in appraising certain assets than you might be if you had to liquidate.

INDUSTRY STANDARD VALUE

It’s common in many industries to have a valuation method. Travel agencies are generally valued at ten times annual commission. Manufacturers’ reps, on the other hand, are generally only worth one year’s commission. Magazines use a certain number of dollars per subscriber. Manufacturers might expect to get between two and ten times annual earnings. Continue Reading »

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