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Steveston resident publishes book on how to valuate small businesses

Atva's free talk will take place on Monday, Feb. 26 at 6:30 p.m. at Richmond Public Library
The Ask
Steveston resident Liisa Atva has published a book helping people valuate their small businesses. Daisy Xiong photo

In a city like Richmond, where the economy is largely made up of small businesses, there are companies being bought and sold all the time.

Steveston resident Liisa Atva, who has worked in the world of finance for more than three decades, has written a book, in plain words, to help people understand the complicated issue of business valuation.

Atva will give a talk about her new book, The Ask: How Much is a Small Business Worth, at Richmond Library on Monday, Feb. 26 from 6:30 to 7:30 p.m.

“Because I have worked in business evaluation before, I was always helping friends and families buying and selling businesses,” said Atva.

A friend of Atva told her there was a dire need for a book in her field.

“I know the topic and I like to write, so I started to write this book,” added Atva.

She said her book is not limited to those who want to sell or buy small businesses, but also owners of companies, even start-ups, who want to grow their firms.

“Small business owners often have professionals helping them or relying on a real estate agents, but still it’s beneficial to understand the process yourself,” said Atva.

“And if you understand how a business is valued, there are things you can do right when you start to make your business more valuable.”

For example, one common mistake people make is to name the business after themselves, according to Atva.

“The problem is that when you sell the business to someone else, unless you find someone who has the same name, it might be a disadvantage,” said Atva.

One recommendation she gives for business owners is to create more an intangible asset, including its brand name, solid customer base, good customer relations, good employee relations and any patents or proprietary technology.

“For a small business, you have to be careful to make that part of your business, so it stays there, even after the owners are changed,” added Atva.

She borrowed the method used in the book Wealthy Barber, to explain business principles by telling stories using three characters – a retiring man selling his manufacturing business, a new immigrant who moved here to buy business and a university student developing an idea for a video game.

To her surprise, Atva received a phone call from the author of the Wealthy Barber, David Chilton, who is also a former guest on the show Dragons Den, about her new book.

“I spent two years writing...Since it’s my first book and I’m not a famous writer, it’s very hard to find a big publisher to publish it,” said Atva.

“I emailed Chilton and asked if he could publish my book. He phoned me back and said he doesn’t publish books anymore but that it was a great idea for a book and that I should self-publish it…(as) he did when he first started.

“It’s really encouraging to have such a famous person call you and take the time.”

Another highlight for Atva is that her book was added to the recommended booklist of the Entrepreneur Finance course in Simon Fraser University.

The book is on sale at Amazon.ca, Village Books & Coffee House in Steveston and SFU Bookstore.

Monday's book talk is free to the public but registration is required.