ENTREPRNEURIAL MIND FINALS QUIZ REVIEWER

Important Note: nagbase lang me sa ppts na given😊 I hope this reviewer helps
everyone. If you have suggestions and corrections sa reviewer, please raise your
concerns ASAP. Yun lang, GOOD LUCK sa atin!
WHY ENTREPRENEURS SELL VENTURES?

BASIS OF STRATEGIC PLANNING

• The firm is expanding with constantly increasing personnel size and market operations
• A high degree of uncertainty exists
• There is strong competition
• There is a lack of adequate experience, either technological or business
REASONS FOR THE LACK OF STRATEGIC PLANNING
1. Time Scarcity
2. Lack of knowledge
3. Lack of expertise/skills
4. Lack of trust and openness
5. Perception of high cost
VALUATION METHODS
Valuation Method is used to valuate the business. using these methods will provide the
entrepreneur with general understanding of how the financial analysis of a firm works..

 The establishment of an actual value is more of an art than a science estimations,

assumptions, and projections are all part of the process.
 The quantified figures are calculated based, part, on such hidden values and costs as
goodwill, personal expenses, family members on payroll, planned losses,and the like.
Three Valuation Methods that are considered the principal measures used in current business
valuation
1. Adjusted tangible assets ( balance sheet values
2. Price/earnings ( multiple earnings value
3. Discounted future earnings
SUSTIANABLE FAMILY BUSINESS MODEL