How often have you seen “Dragon’s Den” hopefuls putting ridiculous values on their fledgeling business? They are trying to put a real number on all the passion, blood, sweat and tears that have gone into fulfilling their dream. They’re trying to turn something they’re 100% devoted to into a real number, and naturally the numbers that come out are enormous. But as we’ve seen, that’s not the same value that others will apply to it.
“Value” is a relative term – it really means “Value to a specific person in a specific set of circumstances”. Many years ago, after one of life’s inevitable down turns, I found myself completely skint; owing cash to a local thug and buying food with rubber cheques that, thanks to a wonderful invention called a cheque guarantee card, the bank would honour. As you can imagine, a five pound note had far more value then compared to now. Read More