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C.R.P. Enterprises of Pilot Butte, Saskatchewan received federal financing in the amount of $20,000 to establish an Orange Julius franchise. First established in 1926 as an orange juice stand, Orange Julius today hundreds of stores in the U.S., Canada and other countries.
A young software developer in Edmonton Alberta has nabbed $8,250 to market Club DJ Pro, software which allows deejays to mix video, audio, and visualizations (ambience) using a dual deck interface. It has dual display support, realtime pitch/tempo change for video and audio! It supports mpeg1, mpeg2, avi, divx, xvid, mp3, mp4, m4a, acc, ogg, wav. It is DAC-2 compatible.
Know your worth
Impress and attract investors with a credible valuation
If you're on the lookout for financing everywhere – and you should be – then you should be prepared to say what your business is worth.
If you think your company is worth $1 million, and you want to raise $200,000, you'd be prepared to give an investor 25 percent of the business or shares. But what if your business is only worth half a million, or if that's what the investor contends? You can see what a difference that means in terms of what you're prepared to give up.
Venture capitalists want to know what you're prepared to give away as part of the financing – based on the value of the business, and you need to be prepared to answer – as accurately as possible.
Also, if friends and family are investing in your business, you don't want to overvalue your business, and end up down the road with them owning far less than they thought or not being able to get another round of financing because of prior mistakes.
Techniques you could use, in order of preference, to determine the value include
Discounted cash flow – Based on future cash flows, allowing for variables in revenues, expenses and new investment, it determines what today's investment will yield down the road.
Going concern value – Similar to discounted cash flow, this method looks at historical revenues, and uses them – unchanged – to predict future revenues.
Book value – This is the company's net worth, based on financial statements. It's okay as a basic reference, but most entrepreneurs would argue that their potential for growth has a value as well – and they're right.
Liquidation value – This is what you'd get if you sold everything you have. It's as basic – and as lowball – as you can get.
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