commerce Bahrainthismonth.com March 2024 53 demonstrated ability to follow through, people management and even how they handle the hard questions. Ultimately, the biggest red flag is a founder who has unreal valuation expectations, needs too much money, doesn’t have an answer on challenges and expects you to trust them without a rationale for trust. After the initial go on the founder, the next challenge is quantifying how much to invest, what the value is and to justify the investment. For these, there are several broad frameworks that get tweaked to attach numbers to factors that seem intangible. For instance, management strength – it’s not quantifiable. Or is it? What if various factors of a company in early stages had actual value attached to them. It is also not difficult to assume what revenues could be in best/worst realistic cases. To this we adjust the realities of the market in that industry with multiples and get a value. If, you assign a weight to each factor that goes into the success of a school such as quality of staff, facilities, curriculum, competition level etc. you will be able to create a matrix and have a total value. Is it scientific? Partly. Is it experience based and partly an art? Absolutely. Will it guarantee returns or success – no way. Yet, if you do this, there is a better chance that the basic factors that go in to succeeding, will be captured so it’s an educated bet. And bets need luck. Luck however, favours those who have done the work. Pria is an experienced business consultant who works as a business coach and advisor helping clients with their strategy, business plans and idea assessments. You can follow Pria at her Instagram handle @guide¬_my_idea. Ramadan Kareem Celebrate the Holy month together with family & friends Group Discounts & Private Venues Available Iftar | Ghabga BD 15* per person Grand *TAXES APPLY RAMEEGRAND.BH RAMEE GRAND HOTEL AND SPA | SEEF FOR MORE INFORMATION : +973 36897379 / +973 17111999
RkJQdWJsaXNoZXIy Mjk0MTkxMQ==