Pre Money Valuation of >$1M check your logic

Escalator Angel day last week was a great chance to reset the dial for many entrepreneurs, well I hope so.

Here is one investors company valuation model – not to different to the VC model we use in our workshops:

Work out what realistic valuation you expect to get on exit. Hint more trade sales are hit at around US$30M than any other mark (NZ$40M). Then calculate valuation today.

So if you wind the clock back 5 years (to today), based on a 30x return and a exit valuation of $40M, that mean today’s valuation must be $1.5M post money … say $1M pre money plus $500K investment for 33%

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Customer Stories are best selling aid for your business

Is your sales pitch hitting the mark ?
Is it remembered next week or how about next month or next year?

Do you remember the Ansett Airline advertisements – “Fluffy the cat “ or the “car keys out the window of the plane”? I ask this question regularly in workshops most people say yes. The ones who say no are usually under the age of  30,  no wonder that was twenty years ago! 

Stories are one of the best ways to provide a “memory hook” for your business. Hunt down great customer stories that articulate the value you give your customers. Then capture and repeat them.

Customer stories that quantify  the value the customer  got as a result of purchasign your product or service  are proven to close deals 80 – 100% of the time.  Whats your best customer story?

PS: If you are one of the few who don’t remember the ansett ad’s check out fluffy from 198X  here it is a link

  http://www.filmarchive.org.nz/sellebration/view.php?id=170

Are you asking your customers the right questions?

Not enough businesses owners – sales people are having effective conversations with their customers.

Why do you think most salespeople never ask customers and prospects how they charge out for their services and what their biggest challenge is when selling to their customers?
If they did, they would have the essential ingredients for a compelling pitch.

Tony Robinson posted the question above on linked in   http://wp.me/pPCxW-1X  

I agree answering this question, will also help you select an effective pricing model i.e full upfront purchase or a licensing model.