Valuation

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The valuation of a business is a mathematical equation.

Valuation = Profit X Multiple

Most people are trained to understand how to calculate the profit in a firm but few understand how to get a value for the multiplier. In all the business plan I have had to review I have not found a section dedicated for the multiplier.

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Authority

 

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My understanding is that business is not just about profit. It is about nobility, honor, influence, goodness, service and power. It is about changing communities and creating a Godly realm of exchange.
I do a lot of research and found out that a lot of business failures at the inception stage is due to the entrepreneur biting off more than they can chew and not understanding the “one thing” of their business, consequently it is much better to fail small and start again than to fail big. It is key that the entrepreneur develops the required level of authority and expertise in the market realm of focus before stepping into it. Without the skill and proven authority, it is equally difficult to build external credibility.
The entrepreneur that wants to grow properly need to be faithful in the little, learn the lessons, believe for the next expansion, make wise decisions and take wisdom and strength along the journey.
The seed for the next level is already there it only needs to be discovered. Every entrepreneur has the seed for greatness.