Week 13 Reading Reflection

1.) I was surprised about the certain aspects that go into the total amount needed to buy a business. Some of the components I felt like were a "duh" moment such as the purchase price, but others surprised me. I didn't realize how in-depth the analysis of these components were such as estimating "three months operating expense" that go into the amount needed to buy the business. I found it interesting to read about and understand for myself as an entrepreneur down the road what factors I should be thinking of when valuing my price- not just the purchase price.

2.) I was confused about the pricing formula steps. For a non financial textbook, I think the author could have explained these steps in a little more detail. I think he/she was concerned on getting straight to the point, but in the concise nature of it, I got confused because I needed more detail on how to apply the formula to my specific business.

3.) I would like to ask the author if he/she has ever distributed the "checklist for analyzing a business" to any small business owners locally. I think this checklist would greatly benefit those owners, and though they can find something similar online, I think the author is on to something. I am curious if he/she has ever found a real life application for this list.

I would also ask the author how much of an understanding of financial analysis do you have to have to become an entrepreneur. How many of the entrepreneurs he/she have met that outsource this type of work? It seems that valuing the company hinges on the ability for financial analysis, so I was curious to know who has this ability and who outsources it.

4.) I didn't find any opinions in this chapter that I really disagreed with the author on. This chapter was very informative on how to value your company. Though I didn't really understand the intricacies of the pricing formula, I saw the need for the formula. Overall, I think the author did a great job including all areas of valuing a business and the important factors an entrepreneur should consider.