How To Use Small Business Value As The Ultimate Performance Indicator

Written by David Coffman

Continued from page 1

There is a better solution. Much more information is now available aboutrepparttar sales of small, private businesses. There are a number of sources that have collected data on thousands of transactions over many years. These databases provide actual market data. Professionals and commonsense suggest that quality market data isrepparttar 149711 best source for appraising any property. The databases have some shortcomings, too. The information is limited to basic data like annual sales, asking price, cash flow, selling price, etc. And some types of businesses don’t have many transactions. The databases work best when there are many similar transactions, so common businesses like restaurants are good candidates. Averaged figures from many transactions offset any extreme or unusual cases. The ratio of selling price to annual sales, or selling price to cash flow is typically used to calculate a specific business’s value.

These databases are available by subscriptions that are not cheap. So it is not practical for a small business owner to access them directly. Andrepparttar 149712 professionals who do subscribe aren’t prone to sharing them. There are a few companies that for a small fee will searchrepparttar 149713 databases for transactions involving similar businesses, calculaterepparttar 149714 average ratios, and use them to calculaterepparttar 149715 value of a small business. These low cost business valuations based on actual market data are great tools for making business value readily available for most small businesses. Using this tool, small businesses can finally start using business value asrepparttar 149716 ultimate performance indicator, just like public companies.

David E. Coffman is a Certified Public Accountant (CPA) who is Accredited in Business Valuation (ABV) and a Certified Valuation Analyst (CVA). His firm, Business Valuations & Strategies, offers a Thumbnail Business Appraisal for $99 that uses actual market data to calculate business value at

Choices in Appointing International Managers

Written by Brenda Townsend Hall

Continued from page 1

Globalization has opened up exciting prospects for companies butrepparttar Cranfield study suggests that, whilerepparttar 149695 economic opportunities are well understood,repparttar 149696 best means of staffing overseas operations are not. Companies need a much more holistic view ofrepparttar 149697 costs of an international assignment:repparttar 149698 costs of relocating somebody (financial, emotional, physical) andrepparttar 149699 local costs of bad placements, cultural misunderstandings and inefficiency, all of which can be reflected in poor year-end results.

How can companies achieve this overview? Will they want to? To answerrepparttar 149700 second question first, it seems obvious that those companies that takerepparttar 149701 issue seriously arerepparttar 149702 ones likely to haverepparttar 149703 greater success inrepparttar 149704 global economy. As torepparttar 149705 ‘how’, it will need a strategic approach that matchesrepparttar 149706 company’s goals. However, a strategy can only be implemented after a proper study of allrepparttar 149707 factors involved:

•How long will it take a manager to become proficient inrepparttar 149708 overseas branch? •What preparation doesrepparttar 149709 manager need before taking uprepparttar 149710 posting?

•What support doesrepparttar 149711 manager need in post?

•What arerepparttar 149712 impacts on family life and how can they be mitigated?

•What arerepparttar 149713 behavioural adjustments needed byrepparttar 149714 manager andrepparttar 149715 family in order to function inrepparttar 149716 new environment?

•What willrepparttar 149717 process of repatriation entail?

•How canrepparttar 149718 knowledge gained form each posting be garnered and used forrepparttar 149719 next assignments?

•How canrepparttar 149720 local branches be supported while they adjust to a new manager?

Undoubtedly there are many more questions that need to be raised. But one thing is clear: globalization is here forrepparttar 149721 long term, and if companies are to succeed they need to takerepparttar 149722 issue of overseas appointments very seriously indeed.

Brenda Townsend Hall is a business communications and cross-cultural trainer. She is an associate member of the Itap International Alliance (

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