Business One
Best described as a company that helps identify an animal’s waste, the PooPrint Company attempts to do the dirty work of identifying animal waste that is not properly picked up by its owner. Used by several of the largest apartment rental complexes, a quick swap of a dog’s mouth provides DNA that can later be used for identification purposes. For rental properties that allow pets, it is imperative that dog owner’s pick up after their pet immediately. Without such common sense clean up, properties become littered and smelly. For apartment complexes that use PooPrint unclaimed animal waste can easily be tested to identify the pet and the owner. Severe penalties can be assessed and repeat offenders can be asked to move out. This is not the kind of business most people think of when they consider their investment strategies. It is, however, a necessary and effective business.
Business Two
This business called Who’s Your Nanny provides an educational and entertaining approach to parents who have to work when their children are off school. Owned and staffed by a group of mothers whose children are now able to take care of themselves, this growing company provides services for regisered families during summer breaks, unexpected snow days, and other scheduled days off. Serving the families of two large school districts, the owners of this group schedule activities on days they know children will need care. They hire other part time college students, retired teachers, and other mothers to be on stand-by for times when they are uncertain of how much help they will need. The rental of a small office building with some large open spaces, the company is able to provide an easy drop off location that can also be used for large group activities and projects. In its third year of operation the waiting list to join the service, as well as a continually growing list of names of extra employees. This company gives children an opportunity to learn how to use city travel options as a group and attend and visit many local sites.
Business Three
A revolving high end flea market, the ArtStock Studio provides space for vendors to display their antiques and repurposed creations. Now scheduled as four day events five times during the year, this company that was started by three female friends has capitalized on the current trend of home crafted house interiors. What started as a small affair in one small empty farm field with 20 vendors charging patrons$5 for entry has now exploded into a permanent location that is nearly three city blocks by three city blocks. While much of the space is used for free parking for visitors, the rest of the space, including old barns and open sided sheds located on the property, is used as vendor space.
Business Appraisal Valuation Methods Attempt to Assign Market Prices to Companies
It is difficult to judge the value of a business. Saying that comparing the value of one business to another is like comparing apples to oranges is a gross understatement. Or, in the case of the three businesses described here, it is like comparing crafty farm land to babysitting to dog care.
Although business appraisal valuation methods are generally a fairly precise estimate, they are still an institution’s best guess at what a company is worth. Used for determining how much insurance a company needs to carry and to determine how much of a loan a company can get when they want to expand, the combination of valuation income approach, valuation market approach, and business valuation market approach can help investors reach a specific dollar amount. In addition, most companies will need some type of business appraisal valuation if they decide to sell their current business.
A business valuation firm closely examines the financial records of a business and compares those numbers to similar businesses to reach a business appraisal valuation. The need for these valuation services is apparent when you consider the following numbers about business growth in America:
- America currently has 26.5 million businesses.
- America currently has 5.4 million businesses that have employees beyond the ownership staff.
- America currently has 21.1 million businesses that have no employees beyond the ownership staff.
- America currently has 99.7% of its businesses with fewer than 500 employees.
