What are the Benefits of Calculating Business Valuation?

[Suba]

Business valuation is a process to evaluate and determine the economic value of a business, startup or issuer. There are several ways/methods that are often used to calculate business valuation such as: asset valuation, discounted cash flow, company value, market capitalization etc. Business valuation will be very useful for both internal and external parties such as:
- Internal assessment, for internal parties both top managers and owners can determine policies and make decisions especially for business development.
- Franchise, especially for businesses engaged in the culinary field, business valuation will also be useful for becoming a franchisor where the business can sell patents or trademarks to franchisees. Etc.

 

[Starmix]

That's a very impressive topic. I feel as if I'm an economist he he. For a small economist like me, it's my franchisor doing it on my behalf being a franchisee of a milk tea business. I am provided with details the total value, expenditures and possible profit. It is, in fact, interesting.

 

[Min George]

When you calculate your business valuation, you would be able to know how much credit is optimal for your business to have per time.