Small Business Focus

How to value your business

Your business is most likely your largest asset.

It’s important to know what it is worth.

However, valuing your business can be a complex task.

The Money Show’s Bruce Whitfield interviewed Pavlo Phitidis, Director and CEO of the Aurik Business Incubator.

Phitidis talked about how to value your business.

Scroll down for quotes from the audio below.

96.4% of businesses started in South Africa never gets sold.

Pavlo Phitids, Aurik Business Incubator

If you don’t build your business into an ‘asset of value’ you won’t get a buyer.

Pavlo Phitids, Aurik Business Incubator

When someone sets his mind on buying a business; the valuation gets very emotive.

Pavlo Phitids, Aurik Business Incubator

A ‘multiple’ is a lazy way of valuating.

Pavlo Phitids, Aurik Business Incubator

The further into the future you can see the business existing and generating profits the higher the valuation.

Pavlo Phitids, Aurik Business Incubator

It’s not about revenues! Look for ‘free cash’; what’s left at the end of the month.

Pavlo Phitids, Aurik Business Incubator

A R1000 today isn’t the same as R1000 next year. You need to discount back to the present.

Pavlo Phitids, Aurik Business Incubator

You buy a business for its profit.

Pavlo Phitids, Aurik Business Incubator

If you don’t build a business based on systems; will the business continue without you?

Pavlo Phitids, Aurik Business Incubator

Subscribe to our Business Wrap Newsletter

CapeTalk welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the CapeTalk community a safe and welcoming space for all.

CapeTalk reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

CapeTalk is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
Benefit from starving elephants and bears and turn your business into a wild dog

Benefit from starving elephants and bears and turn your business into a wild dog

Elephant-like businesses can’t eat enough in a 1.4% growth economy while bears are in survival mode. Be a wild dog! Here's how...

3 small business owners on challenges they face (and lessons they learned)

3 small business owners on challenges they face (and lessons they learned)

Are you a small business owner, or do you dream of becoming one? Learn from three entrepreneurs in the thick of things…

5 small businesses that have grown despite very tough environments

5 small businesses that have grown despite very tough environments

Five South African case studies of small businesses that are booming despite the very tough environment they operate in.

What a fruit and veg trader with 35yrs of experience can teach us about selling

What a fruit and veg trader with 35yrs of experience can teach us about selling

Small business guru Pavlo Phitidis extracts valuable lessons from an interesting case study. Tomatoes are tomatoes. Or are they?

Small business owners (and would-be entrepreneurs) ask and get answers

Small business owners (and would-be entrepreneurs) ask and get answers

Aurik Business Incubator's Pavlo Phitidis presents what he calls "the great big fat small business indaba”.

 How to find funding so your business can grow

How to find funding so your business can grow

Funding your business through what you have, not what you need, is a crucial entrepreneurial skill.

How to segment your customers (and why you should do it)

How to segment your customers (and why you should do it)

Your customers are not the same; don’t treat them as if they are. We interviewed Pavlo Phitidis of the Aurik Business Incubator…

Uncertainty is a certainty! Why you must get out of your comfort zone (and how)

Uncertainty is a certainty! Why you must get out of your comfort zone (and how)

Stuck in a rut? How to actively exit your comfort zone so can become “uncertainty fit” in your business and/or job.

Wanna be a small business owner? Interested in buying a franchise? Read this...

Wanna be a small business owner? Interested in buying a franchise? Read this...

We interview the Chairman of the Franchise Association of South Africa about the ins and outs of franchises.

How to turn R1000 into a thriving business

How to turn R1000 into a thriving business

Valerie Pole took R1000 and turned it into an extremely profitable business (and then wrote a book about it).

Popular articles
[LISTEN] Makhosi Khoza spills the beans on why she quit the ANC

[LISTEN] Makhosi Khoza spills the beans on why she quit the ANC

She says President Zuma was uncomfortable with her and her decisions which saw changes to the ANC and Motsoeneng ousted.

[Watch] Payday dance: Never a dull moment in Cape Town

[Watch] Payday dance: Never a dull moment in Cape Town

Even slow-moving traffic cannot dampen the mood in Cape Town because payday came early. Watch Capetonians celebrating payday.

KPMG International's meeting with Pravin Gordhan

KPMG International's meeting with Pravin Gordhan

The Money Show’s Bruce Whitfield interviews Pauli van Wyk, a journalist with Scorpio at Daily Maverick.

Free entrance to SanParks for all South Africans

Free entrance to SanParks for all South Africans

SanParks is running a week-long campaign that affords South African residents free access to almost all 21 national parks.

Ocean View activist speaks: We have had 20 murders in 2017 alone

Ocean View activist speaks: We have had 20 murders in 2017 alone

Sharone Daniels, a community activist in Cape Town's Ocean View says they need police intervention to end gang violence.

[WATCH] Day-Zero for water running out fast approaching?

[WATCH] Day-Zero for water running out fast approaching?

A government employee emailed John Maytham about what he or she believes is the real state of play with the Cape water crisis.

3 emergency numbers you should have on speed dial and how they work

3 emergency numbers you should have on speed dial and how they work

These are the emergency numbers you should have on your cellphone and this is what you must understand about how they work.