Startups have become so popular all over the world. It is because we all want to rule rather than be a worker. And we all know that startups hold a bright future if the execution of the planning should be done in a very effective manner. But in layman terms, what is your understanding of the term startups? So startups are those new business ventures started up by entrepreneurs.
On which factors the valuation of the startups thoroughly lies
Products- The valuation of a startup directly depends on the products circulating in the market or might be thinking of doing.
Services- It is one of those factors on which the valuation of the startups linked so closely. What types of services you are providing to your customer, and what type of response you are getting from them. It is one of the most prominent things on which the whole valuation of a startup depends.
Entrepreneurs always hope to set a high valuation of their startup in the market to get a good ROI(RETURN ON INVESTMENT).
Why do entrepreneurs widely approach Berkus’ startup valuation method?
Since the 1990s, many new entrepreneurs have relied on this method to implement the accuracy and efficiency developed by the US-based well-known angel investor ‘Dave Berkus.’
It is based on the early evaluation stage to find a great beginning point without considering the founder’s financial estimation.
On what factors the Berkus Valuation approach depends-
SOUND IDEA- Ideation and the course of action is the first and the foremost things on which the entire sequence of work directly relies upon. A startup idea is the startup’s sole, which comes from the founder’s mind.
- Legally authorized– A business idea needs to be genuine or authentic which should not be copied or stolen from any other person. Moreover, it should not seem to have resembled the existing renowned brands which have been ruling the market for a long; otherwise, your startup might put itself into legal trouble.
- Good Insight- You need to have a good insight or a well-defined roadmap for the future run. Promising startup longevity is one of the most prominent approaches which every entrepreneur needs to understand for getting a good response from their side.
- Survival for fittest – Your startup needs to have those limited resources in every aspect which are necessary for market survival. The way you launch your product in the market says a lot about your market presence. You can indirectly challenge your competitors to keep their guards up using that.
- Realistic goal- To reduce the risk factor with your startup valuation, you have to be consistent with the idea, which is easy to work upon. It will automatically minimize the market risk while launching your products and services in the market at large.
In brief, for setting a good valuation, a startup company should have a good managerial team that can take care of all the concerned tasks and properly implements the policies throughout the process. Qualitative work is much preferred over quantitative. Good strategic relationships among the marketers help the startups to hold a recognized place in the market, which directly boosts the startup valuation among the existing ones.