It’s never easy to accurately assign a value to a business, and many people liken it more to an art than a science. This holds particularly true when it comes to start-up companies. Established businesses with steadfast clients and regular revenue can offer specific facts and figures that valuers can then use to help them determine an overall value. With a start-up business that is likely a very long way away from making relevant sales, there is little or no hard and fast information on which to base a valuation. So where do you even start?

The harsh reality is this:

Your start up is only worth what someone is willing to pay for it. However, the flip side of this possibly discouraging statement is that there are things you can do to make investors willing to pay more!

Financial Forecasts

It’s not easy to forecast how much revenue your start up is going to generate, but you have to have some kind of financial projections to present to potential investors. To get an investor really excited, he needs to believe he can get back around 10 times his initial investment within the first five years. If you have financial forecasts that can show this, you’re off to a great start.


Look at established companies similar to yours – remember to factor in geographic location as well as the type of business. This gives you a good idea of the potential your company has and is another weapon in your investor-attracting arsenal. There are online resources available to help you determine the value of comparable businesses, or you can chat to a professional valuer, accountant or lawyer. Financial advisors can also be very helpful in these situations, as they might have relevant valuation statistics for your industry, or know of any recent merger and acquisition transactions that have taken place in your market.

Ask The Experts, Ask A Professional Asset Valuer

Even if your start up has yet to make a single Rand in revenue, a professional valuer has a few tricks up his sleeve to help you obtain a realistic value you can then present to investors. It’s a far more professional approach that simply making an enthusiastic guess!

A professional valuer will look at such factors as who makes up the founding team. Are they well-meaning but ultimately unqualified friends or family, or are they suitably experienced with relevant degrees? A valuer will also examine the potential for growth and engagement, as well as industry competition and market size.

If you have a start up company and you’re looking to attract investment, why not let the experts at The Property Partnership help you with a professional evaluation. Armed with this information, you have a much stronger chance of securing the investment you need to get things up and running. Talk to us today.