Valuation in business is essential due to several reasons, Firstly, it helps determine the true worth of assets, companies, or investment opportunities, aiding in informed decision-making for acquisitions, mergers, or investments. Secondly, it provides insights into the financial health and performance of a business, guiding strategic planning and resource allocation.
What is Valuation:-
Valuation is the process of determining the monetary value of an asset, business, or investment opportunity. It involves assessing various factors such as financial performance, market trends, and qualitative attributes to ascertain its worth. Valuation helps in making informed decisions about buying, selling, or investing in assets.
Why numbers matter in company narratives:-
Company’s valuation numbers play a vital role in shaping a company’s narrative. They serve as objective evidence and add credibility to the story being told. Investors, stakeholders, and potential partners rely on financial performance metrics, such as revenue growth, profit margins, and valuation multiples, to assess a company’s potential and value. These numbers can be used to highlight growth potential, demonstrate value, and align with strategic goals.
‘’Real World Examples of effective storytelling with numbers’’
Coco Cola: “Happiness Campaigns”
Coca-Cola goes beyond simple advertisements; they weave stories into their brand identity and values. From their classic Christmas campaigns, emphasising the magic of the holiday season, to their initiatives promoting sustainability and community, Coca-Cola uses storytelling to highlight their commitment to happiness, unity, and social responsibility. By aligning their narratives with their brand values, they create a cohesive and impactful storytelling experience that resonates with consumers.
Airbnb: “Personal stories from hosts and guests”
One of the keys to Airbnb’s success lies in its ability to leverage personal stories. Through their platform, they allow hosts and guests to share their experiences, creating a sense of authenticity and trust. By showcasing real-life stories of people discovering unique accommodations, forging connections with hosts, and immersing themselves in local cultures, Airbnb taps into the power of storytelling to build a community and inspire wanderlust.
Airbnb understands that trust is crucial in the sharing economy. Through storytelling, they build trust by highlighting the authentic and personal experiences of their users. Whether it’s a heartwarming tale of a host going above and beyond to make a guest’s stay unforgettable or a traveller experiencing a transformative journey, these stories foster a sense of trust and reliability, making Airbnb a go-to platform for travellers seeking unique and meaningful experiences.
UBER: “Revolution of urban transportation and self driving cars”
Lower fares facilitated by Uber’s app-based model and efficient driver network are another set of numbers that support the disruption narrative. Uber’s narrative extends beyond just ride-hailing. Investment in self-driving car technology paints a picture of a future where Uber controls a fleet of autonomous vehicles, potentially reducing costs and increasing efficiency.
The success of Uber Eats, their food delivery service, demonstrates their ability to diversify revenue streams beyond core ride-hailing services. Growth in on-demand delivery services provides numbers that support a narrative of Uber’s potential as a comprehensive transportation and logistics leader.
