http://www.thickenmywallet.com/blog/wp/2009/09/30/how-to-increase-the-value-of-your-business/ Everything to do with thickening your wallet Wed, 01 Feb 2012 15:44:00 +0000 hourly 1 http://wordpress.org/?v=3.3 http://www.thickenmywallet.com/blog/wp/2009/09/30/how-to-increase-the-value-of-your-business/comment-page-1/#comment-19641 Lance Fri, 02 Oct 2009 02:45:56 +0000 http://www.thickenmywallet.com/blog/wp/?p=1227#comment-19641 It's all about the balance sheet and thus cash flow. When I value a potential business, I don't really care about the revenue and profits that much. The balance sheet and resultant cash flow statement tell me everything that I need to know. Far too many small business owners overvalue their business. Three times cash flow is a good general rule of thumb to start with for a valuation -- I've run in to business owners who are asking TEN times cash flow. Are they delusional? It’s all about the balance sheet and thus cash flow. When I value a potential business, I don’t really care about the revenue and profits that much. The balance sheet and resultant cash flow statement tell me everything that I need to know. Far too many small business owners overvalue their business. Three times cash flow is a good general rule of thumb to start with for a valuation — I’ve run in to business owners who are asking TEN times cash flow. Are they delusional?

]]> http://www.thickenmywallet.com/blog/wp/2009/09/30/how-to-increase-the-value-of-your-business/comment-page-1/#comment-19632 Retired at 31 Wed, 30 Sep 2009 14:15:37 +0000 http://www.thickenmywallet.com/blog/wp/?p=1227#comment-19632 Great post. It never ceases to amaze me how many people are so obsessed with the top line number. I even met someone once who claimed to be a millionaire - after chatting a bit, it was because their company did a million... in revenue. Great post. It never ceases to amaze me how many people are so obsessed with the top line number. I even met someone once who claimed to be a millionaire – after chatting a bit, it was because their company did a million… in revenue.

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