Ask Mike Shew for Small Business Owner Advice. Mike is a 5-Time Past Business Owner.
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How to Create a Business Plan to Acquire Investment Capital.
Your plan needs to be concise, logical, and give your investors what they need to know to invest in your company today.
Elevator speech Business Plan:
What is your concept?
How much investment capital do you need? See valuation of a business below.
When do I get my money back?
What is my ROI on my investment?
Do the work and background history support running the operations of your concept?
Most investors want 51% ownership, just in case you get lost in your leadership role.
How do you calculate the valuation of a company?
Method 1 Calculating Market Value Using Market Capitalization
1. Decide if market capitalization is the best valuation option. (there are other methods)
2. Determine the company's current share price.
3. Find the number of shares outstanding.
4. Multiply the total number of shares by the current stock price to determine the market capitalization.
This next bit of information refers to above about outstanding shares being found and priced. Companies you considered or review for a benchmarking valuation should be in the same industry, same size, and similar sales/profits to your company you want to value. Also, the sales (of comparable companies) should be recent, so they reflect more or less current market conditions.
Valuation research help:
The 2018 Business Reference Guide, now in its 28th edition, is the essential guide to pricing businesses with conventional rules of thumb and pricing information for over 600 types of companies. https://businessbrokeragepress.com/shop/books/2018-business-reference-guide/
Floridamakes.com can perform a CoreValue Non-Certified Buisness Valuation to Uncover Any Potential Red Flags to Support Succession Planning. (See support for manufacturers Floridamakes.com video in the drop down menu)
Please take a look at one of my past business plans(Discount City) template, as an example of how to write a business plan for you to review