Chapter 36. High Potential Value
Value is the life-giving power of anything; cost, the quantity of labour required to produce it; its price, the quantity of labour which its possessor will take in exchange for it. | ||
| -- John Ruskin, British art critic and author.Munera Pulveris, ch. 1, 1872. | ||
Definition
High Potential Value is the estimated value of the enterprise after about year five. The upper end can be anywhere within modesty and the low end should probably be something in excess of $100 million. At this tender stage of the process, a reasonable estimate is about three times the revenues or 10 or more times the earnings of year five. It should not be difficult to imagine a venture that reaches such altitudes after year five, unless of course ...
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