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Entrepreneur101 - Finances
Valuation
Determining a dollar value of your company may be one of the trickiest things you must do. In many cases there are no other businesses quite like yours (after all, it is a start up - if there were a lot of other folks doing the same thing, you wouldn´t be doing it!).
Obviously, a VC is going to want the lowest valuation possible, while you are going to want the highest. The negotiability of valuation will be determined by market conditions.
The truth is, the valuation of your company to a venture capital firm may have more to do with the "going rate" than with your product ideas or the details of your business plan. You will need to know your revenue estimates, exit strategy, and profitability potential before you even begin to negotiate valuation.
Some links that may help you are:
www.toolkit.cch.com/text/P10_2100.asp
www.toolkit.cch.com/text/P11_2200.asp
Tax Planning
It is important to get off to a good start when it comes to tax issues. Decisions made early on can have significant impact on how your company is considered by the various taxing authorities. Even if you hire someone to help you with tax issues you are still ultimately responsible.
Some links you may find helpful are:
www.toolkit.cch.com/text/P07_0005.asp
www.startupjournal.com/runbusiness/taxadvice/20021122-herman.html
www.turbotax.com/
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