The problem with many small businesses is that they are really a job disguised as a business. Meaning that with out the owner working every day the business cou

The problem with many small businesses is that they are really a job disguised as a business. Meaning that with out the owner working every day the business could not exist. If it's really a business then it should have a net income after all expenses and fair salaries, for everyone, are paid. You then multiply the net income by 10 which gives you a starting point. Increase multiple if it's a fast growing business or decrease the multiple if it's a slow growing business. There are so many ways to make a business look profitable without really being profitable that buyers will want to see a history of growth. A job disguised as a business is priced differently and it's all related to the prospects and the business's asset value. Annual sales revenue is an iffy way to price it since you can sell a lot and have very little income. I once heard of a company that sold over 5 million a year but could just support 2 employees at a 35k salary. But at least it was able to cover the expenses and salaries. Many businesses can't even do that even though they have lots of sales revenue. You should look for a business broker and see if you can hire them as consultants for a fixed price. But the least you need to do, if you want to sell, is to turn it into an business entity and make sure you can transfer all assets and intellectual property independent of your and your partners interests and liabilities.