2 ms·
Anyone that wants to buy a business would want a complete business. One that does not have to rely on the founder/owner for it to continue. So the 1st thing you
by WheelsAtLarge 5y ago
Anyone that wants to buy a business would want a complete business. One that does not have to rely on the founder/owner for it to continue. So the 1st thing you need to do is to extricate yourself from the business. The business needs to run without you or with you as a replaceable part that can easily be replaced. Once you have that then you can begin to decide what to do.
Valuing a business is all related to the net profits after all expenses and salaries are paid, including yours. Multiply that by 10 and that will give you an idea of what the business is worth to an investor. But that's only a starting point to help you get started. You'll need to factor growth rate and future prospects. High growth companies have a higher factor and low growth business have a lower factor.
Also keep in mind that as the owner you'll put a premium on the business that only you will value. It's a cognitive bias. We value our stuff at a higher value than what others will. So to get a realistic value you'll need to seek a consultant to help you evaluate it.
That's your starting point. Good luck