10 Rules for Valuation

10 Rules for Valuationby TIM BERRY on DECEMBER 7, 2007 in BUSINESS PLANNING,PLANNING FUNDAMENTALS,VENTURE CAPITAL Read more: http://timberry.bplans.com/2007/12/10-rules-for-va.html#ixzz1HdGebFFc

I really don’t like the word “valuation”; it sounds too much like an MBA buzzword. But I like even less the general confusion about the concept. We talk about starting businesses, we talk about running businesses, getting investment, getting financed, and we should take discussion of valuation for granted. Valuation is at the same time frequently necessary, obvious and extremely arcane. It is nothing more than what a company is worth. It becomes necessary more often than you’d realize, with buy-sell agreements and tax implications after death and divorce, plus financing and investment. It’s obvious because a business is worth what a buyer will pay for it. And then it breaks down into complex formulas and negotiations.

So here are 10 (I hope simple) rules for valuation.

  1. 1. Valuation is what a company is worth. It’s like what a house or a car is worth–less than the seller says, more than the buyer says.
  2. 2. A company’s ownership is almost always divided into shares. Let’s say your company has 100 shares, 51 yours and 49 your co-owner’s.Valuation
  3. 3. Valuation equals shares outstanding times the price of one share. If the company is worth $500,000 and there are 100 shares, then each share is worth $5,000. (OK, there are exceptions, preferred shares and such, but leave the fine tuning for later.)

4 ….
Read more: http://timberry.bplans.com/2007/12/10-rules-for-va.html#ixzz1HdGPVUAT

BarCamp NewsInnovation – April 30th

Aside

BarCamp NewsInnovation – April 30th. BCNI Philly, now in its 3rd year, is a pretty awesome day of talking about innovation in the news industry. It’s a barcamp, which means the sessions are determined by the participants. Last year I got to hear about APM’s Public Insight Network and Peer News, an online-only, subscription-only startup in Hawaii. Best of all: it’s free!

I’ll be headed down there again this year and would love to have any or all of you join. Hit me with any questions you have in the comments.

On the subject of APIs…

O’Reilly Media, one of the most successful tech publishers of the last twenty years, announced a new API and API contest today. Contests and hackathons are a pretty popular way these days to get people using your API. Anyways, they also published a piece called “3 ways APIs can benefit publishers” which should, in turn, better understand the opportunities.

Reminder: Basic HTML/CSS Workshop This Wednesday

For those who want to learn about making cosmetic changes to personal or class blogs, please stop by our HTML/CSS workshop this Wednesday, March 23rd at 5:30 PM in room 442. The hands-on exercises will cover how to style links, text, headings, backgrounds and more. It will also be a great time to ask specific questions about your websites.

Click here to view the agenda.

If you’re planning to come to the workshop, please take a few minutes to fill out this pre-workshop survey.

Looking for input on Monday’s technology immersion class

Selcen asked me to come in and lead a conversation this coming Monday, the 21st. I’d love your input on what you’d like me to prepare. To help with this process, I’ve created a Google Doc anyone can edit. Please add questions you’d like answered or topics you’d like addressed under the “Questions or topics to be covered” subhead. Also, feel free to hit me with any questions in the comments of this post. Thanks in advance.

8 Things You Must Know About Your Audience

8 Things You Must Know About Your Audience

(by Pam Moore of SocialMediaToday.com)

… A good post focusing on some of the key questions that help in understanding who your product or service will address.

Here are the first couple of questions in the post:

1. Who is your audience?
No blanket answers here such as the entire zip code of Tampa, Fl. Instead focus on details and demographics such as:

  • Where do they live?
  • Where do they work?
  • What do they do for fun?
  • What is their lifestyle?
  • Where do they hangout when not at work?
  • Where do they hangout when online?
  • What types of conversation are they having?
  • Are they talking with your partners? With your competition?
  • How much money do they make?
  • What is their lingo? Tone? Casual? Professional?
    *The list goes on and on here. You get my point by now, hopefully!

2. What are their pain points?

  • Why do they need your product?
  • Why do they experience the pain that requires them to need your product?
  • What is the financial, emotional and life impact of the pain? How bad is it?
  • What happens if they don’t have your product or service? What alternative products and services are there?
  • Will they mitigate or reduce the pain themselves if you don’t help them?

Read On…