Let’s say you’re an up-and-coming entrepreneur who’s doing a great job of marketing online. And your first year’s sales are over $500,000. Terrific, huh? So what’s your business really worth to an investor? If you say half a million even though you haven’t made much or any profit yet, imagine a giant buzzer going off signaling “WRONG!”And yet again and again I see intelligent business owners coming to the TV show Shark Tank to ask for an investment for their business. And they ask for a valuation (what the business is really worth) that is equal to or greater than their GROSS (total) sales. And then they get really mad when the savvy investors tell them they are in fantasy land.