Forums: Discussions for entrepreneurs and small business.

I am looking to start a manufacturing business (could be product or service based).  I am looking to get an investor(s) to substantially fund my business, which reduces my family finance risks.  I would take a lower salary in exchange for shares in the company.  I have done a significant amount of research into the business to determine where opportunities exist and market trends.  I have also come up with the basic product design.

So the question is: How do I go about putting a valuation on the work I have done to date.  I want to be fair to the investor, but I would like something more than a paycheck at the end of the day as I expect that it will either be sold or franchised or both.  I looked through the posts and could not find good guidance on this topic.  Anyone have some advice for me?

P.S. The proposed business is in the area of additive manufacturing (3D printing).  I have different options depending on the investor's appetite. PM me if you are interested in participating.

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The valuation has to be calculated against a number of parameters such as estimated yearly profit your company could generate.

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India Inspection

Indiainspection,

That makes some sense.  That implies that the only effort that is really of value and irrelevant is the expected money to be made; do you agree with this?

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EricD,

There are several ways to look at the value of your contributions including:

1. What it would cost if one paid people to do it

2. The "market value" of the results.

3. The number of hours times the market hourly rate.

However, if you are looking to establish a valuation for the company - remember that ultimately it will come down to what you and the investor can agree upon.

If you would like to discuss your specific situation, feel free to drop me a PM or contact me directly.

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Business Growth Masters, LLC -
Capital Catalysts for Entrepreneurs
Home of the Scalable Business Plan and QuikStart Capital Programs
http://www.bizgrowthmasters.com
info@bizgrowthmasters.com

Thanks Robert,

Thanks for the comments.

I suspect that I have been looking for something more profound!  I agree that it always comes down to what my investor and I agree on.

Thanks for the offer to contact.  We'll see how things go first.

Eric

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