Hi! I'm Dane Carlson, and welcome to the Business Opportunities Weblog. I've been publishing this website, by myself, and sometimes with the help of others for over twelve years now. You'll notice two things about this site right away:
How much is that business you want to purchase worth? Steve Pilgrim explains:
Let’s say you are given the opportunity to buy a great business. It’s a business you like. You’ve used the products and services of this business for years. You like it. You like it a lot, and now you have this opportunity to buy the business.
Realizing that you love and admiration for the company isn’t sufficient to lay out your hard-earned cash, you decide to do some very basic homework. You want to know what price you should pay for this business.
We’ll keep this (overly) simple. The business sells $1000 worth of goods and services every year. After paying all of its expenses, it earns $100. That’s the profit. As the potential investor, you are being asked to buy all of the 100 shares of stock that this company has issued. What should you pay for 1 share? At what price for a share of stock are you content earning $1.00 of profit per share? At what price for 100 shares of stock are you content earning $100 in profit each year?