How much is my new business worth??

extrabox — Thu, 07 Feb 2008 14:11:38 -0800

I am starting up a new business, and I am trying to put a value on it in order to "discuss numbers" with several people who have expressed a serious interest in investing in it. In terms of a one year window, I know pretty close to exactly how much money it will cost to start up and operate the business. For the sake of argument, this number is $100,000.00.

In terms of how much much gross income I expect to take in for the first year, this could also be seen as $100,000.00, and obviously I would expect this number to grow over the next five years by as much as 20% each year.

In terms of investors, I want help with that first year $100,000.00 nut.

So, if some investor decides to kick in $50,000.00 as one has said he would, how much of the business should he get for that?

How much is this business worth as a brand new venture?

(If it matters, although the actual business is in Hong Kong - it is a distributorship - the investors, and ultimate owners are US based.

I appreciate any answers or advice!!!!

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How much is my new business worth??