2020 October

All too often banks, potential investors, and creditors will determine a company's value based on financial statements. This is a mistake. Financials do not come close to telling the true story. Sure, they present the tangible value. But what about the intangible value? Company valuation is emotional—a company is worth what an acquirer will pay, what the market will pay, what the interested parties perceive. We see evidence of this frequently when companies with a trickle of revenue are acquired for gushing millions or even billions of dollars.

Revenue is down. Sales are slowing. The CEO looks up from the business plan and realizes that the company won’t meet analysts’ expectations. Focusing on the organization’s sales leader, the stage is set for sacrificing a scapegoat.

Many investors are only interested in investing money into an enterprise for a limited amount of time. They want to know when they will get their money back and what sort of return they will be receiving at that time. Both issues are closely linked. Therefore, when preparing your business plan, to pitch to potential investors, you will need to make sure that you have outlined your long term plans and a sound exit strategy.

People will always stress that having a well-researched business plan is key before you start your business. Although creating a business plan is often an important step in the evolution of a business, particularly if you need financing or you are not experienced at running a business, it is not necessarily the essential first step. There are two key elements that should be completed prior to the business plan:

Corporate Finance Services (3)The ultimate purpose and goal of Dawgen Global Corporate Finance Team is to maximize the value of a business through planning and implementation of resources, while balancing risk and profitability.

Studies on creative people have consistently demonstrated that creativity is associated with openness to new ideas, risk-taking, and being inner-directed. Do these traits put creative people at odds with the culture and people around them? The answer is sometimes yes and sometimes no.