How To Value Your Business

By Henry Reith, - In Money

Picture of 1p Sweet Displayed In A Window

Photo Credit: Anguskirk

The first thing that any entrepreneur should do when thinking about selling his or her business is to make sure they understand the true value of their business. By knowing how much it is worth, they know what to expect and whether or not it is worth selling at that time. There are thousands of online businesses being sold each year, and there is no reason why you shouldn’t get that big payday you deserve.

Below is an infographic that has been made by a professional valuation company which shows information regarding the sales of over 7000 businesses last year. It will help you get a better idea of where your business stands because it shows what kind of businesses were sold and what kind of multiple was used based on the business type. For example, let’s say that you are running a retail online business that is making an average of 100k income each year. According to the infographic, retail stores sell close to 2.5 the multiple of income, which means your business is worth about $250,000. Although this is just an approximate figure, it helps to provide you with a little more insight on your business.

A Infographic showing you how to value your business Business Valuation

Infographic certainty of Validator

Thumbnail credit: Anguskirk via photopin cc


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