Week 13 Reading Reflection

This chapter mostly talks about how to value your business. This chapter was an interesting read because I’ve never really studied this topic in debt in any class. This chapter is mostly math but it does talk about an emotional side to this process which is what I found most interesting. People value a business strictly for informational purposes other times for is to sell the operation. The emotional side to this comes in when you start a venture. Its almost like a child, you have to nurture it through early growth and help with others perception of its value. But there’s a number of ways in which you can value your business. But all these different ways share some underline steps. First you have to analyze your business. And there are many different ways you can do this threw rations and stock analyzing. What I didn’t like much about this chapter is that if focuses a lot on companies that have sufficient resources to value their ventures at this scale. A lot of companies make their own accounting statement, because they are small companies that can’t afford to hire a CPA firms. These business are prone to financial error and thus prone to errors in valuation. And some business don’t even do financial at all, because that’s just how small their business are. Hence, I wish the author would have focus on other way to valuing the ventures, simple way in which small firms could use and afford.