#entrepreneurship
3 articles
Small Businesses Sell for 2.7x Cash Flow. A 20% DCF Says 5.3x. The Owner's Salary Explains the Gap
BizBuySell's Q2 2026 report puts the average small-business sale at 2.7x cash flow. We ran the median $155,921 cash flow through a DCF: at a 20% discount rate it's worth $821K, until you pay the new owner a salary.
The Real Startup Runway Question Isn't 'When Do I Run Out' — It's Which Comes First
We ran $200K cash, $25K/month burn, and $5K MRR growing 12%/month through a month-by-month simulator — the revenue ramp reaches breakeven before the static cash-divided-by-burn estimate would suggest the money runs out.
Stop Splitting Co-Founder Equity 50/50 by Default — Use a Formula You Can Both See
We ran a three-founder scenario (idea originator, technical co-founder, part-time investor-operator) through a transparent weighted formula — idea, time, capital, and experience — and the split moved meaningfully away from an even three-way default.