- July 30, 2022
- Posted by: Ramkumar
- Category: Posts
How to command superior valuations for your company?
In my experience, the following points should work for most firms, especially startups/private businesses.
2)Converting #TAM to products/services: The questions revolve around the plausibility of your business potential and resource and funding constraints.
4)Scalability: How quickly your business scales test your limits of operational, managerial, and financial capacities.
5)Competitive advantage: As your firm matures, your focus should increase entry barriers by focusing on the competitive advantage that allows your business to harvest markets for earnings and cash flows.
As i consult more startup founders and private companies, i invariably find founders wanting to scale before they become profitable. This strategy might work until you can access cheap capital from banks and investors. Then, investors will shift to profitability once the cost of capital becomes higher with higher borrowing costs (high-interest rates).