Business and Money Tips

Note: The author Andy Ng is a CA (Chartered Accountant) and a member with the Institute of Singapore Chartered Accountants (ISCA) since 1988 The other day I received a call from a friend who wants to know how much should his friend asked for when another business wants to buy over his business.  This subject is called Business Valuation, and it is taught in MBA schools.  Today in just 7 minutes, you an be an expert on this subject.  A business is worth what someone is willing (and able) to pay for it.  So the only true way to value your business is to put it on the open market and see what offers you receive. Having said that, there are some common methods to value your business which give you a starting point for negotiations and a rough idea as to what your business is worth. What’s more, knowing how to value your business can help you understand where the value lies and maximise your business’ worth. The most common method is based PE or Price Earning Approach.  This

You wouldn't believe this: as much as 60% of small and medium enterprises are struggling to survive in Singapore when the economy is growing at 3% to 4% this year.  In fact not just SMEs some bigger companies (including MNCs) are also doing badly.  People often asked me: are there ways to turn around this? Companies that do well usually exhibit the following 6 attributes: They treat their staff well, not just in salaries but also in development and opportunities for growth They allow people space , i.e., they don't squeeze until the last drop of juice.  They make sure people work hard but are not workaholic They invest in marketing and sales , for they know that having the best products will not sell unless the selling and marketing are good They tapped into the expertise of outside vendors, like trainers and consultants.  They use their expertise often and multiply their intelligences multi-fold They are not in sunset industries (e.g. traditional printing) or in in