Why Companies With No Real Asset Value So Much: 7 Essentials They Consider

Do you really think that a company with no real assets can be worth as much as $ 40 billion? Well, you will find out in this short article today.

Today, I believe that you will benefit from some of the simplest elements when it comes to valuing a business. So, let’s get started, the 7 essential elements that most companies consider when assessing themselves based on milestones.

I was looking for a topic this morning when I came across a discussion on Reddit “How do companies like Uber and Ashley Madison rate themselves?” The discussion caught my attention when one of the participants said, “I was reading about the Ashley Madison scandals and how she has sales of $ 115 million, but values ​​herself at $ 1 billion.

Even a company like Uber that doesn’t have an actual asset value of $ 62.5 billion, where did they get those values ​​from? “And I know some of you may have wondered how you got those values ​​too.

Well, most companies rate themselves based on their milestones. Let me give you an example, if you watch the Uber news, you will see that they always talk about their milestones.

The company proudly announced that they had reached the new milestone on April 14, 2015. Wayne Ting said, “The number of Bay Area driving partners on the Uber platform exceeded 20,000 for the first time … And we weren’t even halfway there. a year ago. “

Moreover, on June 28, 2015, they also passed their milestone in South Africa, and this year 2016, their goal is to reach another milestone in China. Okay, in that case, let’s briefly go over the 7 essential elements that most companies look at when evaluating themselves:

# 1: Business Plan – The first thing they would be proud of is having a business plan. They know the purposes of a business plan, which you can use when you want to fundraise. You can also use it as a marketing tool and as a planning tool.

# 2: Money: money is a very important tool in all businesses, you know that. They go and collect some cash.

# 3: People – They also hire people, and remember that the number 1, 2, 3 things investors look at when they value a company are people.

# 4: Products – Another thing is that they build their products and bring them to market. It could just be a company app or something like that.

# 5: Customers – When there are no customers, there would be no sales, and when there are no sales there would definitely be no profit. They carefully find out who your main customers or your target market are. They can base their target on demographics, or lower or higher grade college students, geographic or whatever.

# 6: Marketing – This is very, very important. Marketing is the propeller that propels your products to the desired market, I mean the right market. It also helps your brand gain exposure when managed effectively.

# 7: Risk – So what most venture capital firms do is look at a firm’s risk factors, if the firm’s risk stage is lower, they are usually worth more money in all of those stages.

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