In a NY Times article, “Failure Isn’t Always a Bad Thing”, an interesting formula on determining a start-up’s potential for success is presented which was extracted from venture capitalist David Sliver’s book “Smart Start-ups”:
V = P x S x E
Valuation = Problem solved x Solution’s elegance x Experience of management
An interesting alert came across our desks this morning, from Forbes.com: The Most Valuable College Basketball Teams.  I somewhat choked on my coffee and had to read again. The value of a collegiate basketball team? FMV is a proud supporter of the University of North Carolina at Chapel Hill and it was no surprise to see the Tar Heels top the list. The metrics used in this assessment were unique and certainly different from the world of small business valuation, but it was an interesting read. While the methods used by Forbes are based on ticket sales, tournament earnings and a teams impact on its school and athletic deparment, one major factor was completely ignored: team apparel sales! While it could be difficult to extract basketball apparel sales from football, one could quickly assess official basketball jersey, shorts, and other official merchandise sales directly associated with a collegiate basketball team. The valuations would skyrocket, especially for UNC as they are the #1 in licensed collegiate apparel sold world wide! Hmmmm, do you think that is because of basketball or football? In addition, with the limited data collected, Forbes used a conservative multiple of profit ranging from 1.5-1.75 to determine a teams valuation.  Forbes ”valued” the top 20 NCAA basketball teams and the valuation gap from 1st to 20th (UNC vs Xavier) was not even 2x! How can UNC men’s basketball only be 2x more valuable than Xavier men’s basketball — that is way off.
If you or your company has any business interests that tie into internet marketing and the promotion of your website, then you need to hop on over to Andy Beal’s www.MarketingPilgrim.com. On a daily basis, you can expect to find a combination of internet marketing news stories, useful tips, and some strong opinions on an assortment of relevant topics. We have been following Andy Beal’s thoughts and opinions on internet marketing well before the launch of Marketing Pilgrim, tracing back to his days at Search Engine Lowdown; so take it from us, he knows his stuff and will give some great insight beyond mere facts & rehashed news stories.
A CNN Money article hits retirement concerns head on. We’re all well aware now of the growing baby boomer generation and the significant impact it will have on our society. Some of the assumptions, fears and hot topics are successfully addressed in this article.
Some of the key topics covered and explained include:
If you are a small business owner who’s company is primarily internet-based, especially in eCommerce, trying to determine the value of your web business can often be a daunting and very challenging task. A fundamental question that challenges traditional thinking pertains the tangible and intangible value of a website. For pure play web companies, the website is their building and the internet is their real estate. When a traditional company is sold, often times the building and land go with it. Is web real estate and property being valued in the sale of a web business?
Texas Hold ‘Em poker has gained monumental popularity over the past 5 or so years thanks in large part to ESPN and online poker sites. The game has been around since early-1900s but really began to gain notoriety in the early 1970’s with the introduction of the World Series of Poker (WSOP). Today, millions of Americans play Texas Hold ‘Em. If you know the game, you’ll appreciate our texas hold ‘em business analogies:
Selling a business can be a very complex, time consuming and daunting task. We highly recommend that you do not cross this chasm alone, but seek out professional advice and expertise. While typical roles include that of a business appraiser, business broker, lawyer and possibly your CPA, there is one other professional specialist you should really seek counsel from: your financial advisor.
Over at Yahoo! Finance, they feature an article about hiring family members and friends in the small business. When I first began reading the article, I almost choked on my lunch at one of the opening comments: “I’m a big fan of nepotism.”
Fortunately, the article went on to lay out guidelines for the small business owner who is seeking talent and is looking to family and friends as new employees. It’s a good read if you’re at the crossroads of staffing…..check it out.
When starting a business, launching a new product or executing strategic growth initiatives it is important that you throw a 1-2 punch. A wise man (my father ;-)) once said, “plan your work, work your plan”. This is a simple yet very complex concept. This idea can really carry over to all parts of life — family, friends, work, faith, health, play, etc. While we all have ideas and expectations we hope come to fruition, the responsiblity to act still rests solely on our own shoulders for us to take action and turn potential and actual.
