Introduction to entrepreneurship/IENT103/Valuing/Overview

As an entrepreneur, you need to think about what affects the value of your start-up business over time, and any associated risk(s) for different types of investor.

Valuing a start-up business can be challenging because of the lack of historical performance data. However, there are a number of methods used to estimate the value of a start-up business. Ultimately, the value of your start-up is what an investor is willing to pay for a share in your business. Knowing what underpins value will assist you when considering investment offers.

Objectives

At the end of this learning pathway, you will be able to:

• Calculate the break-even point for a business start-up
• Determine how potential investors value a business start-up
• Identify methods used to value a business start-up
• Consider factors that affect the value of a business start-up