$13,000 in profit (Last 12 Months) What's my business worth?

14 replies
I'm thinking of selling one of my businesses and would like someone with experience to give me a rough estimate of the value. Please send me a PM as some of the financial information is confidential and I don't want it out on a public forum.

Please don't bother if you have like 1 post. Respected members or members who constantly contribute only please.

Thanks

Mike

P.S. For those asking, I may sell my writing business. I have the financial information available, but I'd like to keep this to PM or email
#business #valuate
  • Profile picture of the author TolyZ
    How sustainable is your business? On average, you can expect someone to pay 6-12 months of profits.
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  • Profile picture of the author stallion1
    cash flow, how unique / saturated is your niche, usually an industry multiplier times your monthly revenue
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    • Profile picture of the author Devin X
      Banned
      Originally Posted by Seatbelt99 View Post

      I'm thinking of selling one of my businesses and would like someone with experience to give me a rough estimate of the value.
      13,000/12 = 1,083.33
      1,083.33 X 10 = 10,833.33

      That's about all you will be able to get, realistically. Yes, that includes the brand too, if you have one. It also includes your lists, 3-6 months of support on your part for the new buyer, and anything else related to the site/biz (fan page admin permissions, etc).

      Originally Posted by TolyZ View Post

      How sustainable is your business? On average, you can expect someone to pay 6-12 months of profits.
      Yepp, these kinds of questions will come up (and more) from any intelligent buyer. Also, like he said, you can expect 6-10 months of monthly revenue. 12 months? Ehh not so much, you're welcome to try though.

      Originally Posted by thedanbrown View Post

      a lot of different factors here. Was your questions answered yet?
      No, not really. It's what the market will bear, and that's not all that complicated as I've illustrated above.


      Originally Posted by Mike Hlatky View Post

      I would estimate $25-30,000.
      Which one is it? 25 or 30k? Neither, but it's funny how you pulled that number out of a hat.
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  • Profile picture of the author Seatbelt99
    Not completely. Would someone with the appropriate knowledge send me a PM so I can offer more details?
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  • Profile picture of the author Jarrett
    Banned
    I'd recommend getting a site broker.. If your site is worth substantial amount of money a broker is a great way to go.. They've got contacts / pool of people who will pay top dollar for good sites.. and can close the deal for you. The get paid on commission.. so it's in their best benefit to get you the most money.


    I did this for a site we sold for $103k and would highly recommend it.
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  • Profile picture of the author Mike Hlatky
    I would estimate $25-30,000.
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    • Profile picture of the author Alexa Smith
      Banned
      Originally Posted by Mike Hlatky View Post

      I would estimate $25-30,000.
      I'd love to know how you worked out this figure?! :confused:

      Without wanting to turn the conversation into an argument at all, it seems to me that (unless all the work is outsourced, which I don't for a moment imagine to be the case) this is a business in which the future income depends almost entirely on the writing-skills and marketing-skills of the purchaser, and one has to ask oneself what the actual assets being offered for sale comprise, here. The problem is that someone with Michael's writing skills, and average-ish marketing skills, setting themselves up as an "online writing service provider", would have little difficulty earning the $13,000 in a year without buying Michael's business anyway, and would be asking himself/herself "How does buying this business actually add anything much to my income prospects at all?"

      It would certainly never have occurred to me, when I started (and this is how I started) to "buy a business" of this kind. (Not that I had $25,000 - $30,000 anyway, needless to say. $250 - $300 was nearer my level of available capital, as I suspect it is for many people eager to earn $1,000 per month by providing writing services).

      It seems to me that selling such a business is going to be incredibly difficult, Michael, I'm sorry to say - if indeed it's possible at all.

      This is surely the kind of business in which the income is derived primarily from one's relationships with one's clients, and one's ability to do the work required in such a way that they keep returning for more services?

      I don't for a moment imagine that 1% of people interested in going into this line of work have $25,000-$30,000 to spend on a business in the first place. Sorry if I'm being outspoken about it, but to me it's very difficult indeed to see the suggestion above as anything other than pure fantasy.
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      • Profile picture of the author Winlin
        Originally Posted by Alexa Smith View Post


        this is a business in which the future income depends almost entirely on the writing-skills and marketing-skills of the purchaser, and one has to ask oneself what the actual assets being offered for sale comprise, here. The problem is that someone with Michael's writing skills, and average-ish marketing skills, setting themselves up as an "online writing service provider", would have little difficulty earning the $13,000 in a year without buying Michael's business anyway, and would be asking himself/herself "How does buying this business actually add anything much to my income prospects at all?"
        <-------That!

        ... and if the OP made any of the $13,000 from writing the content or performing the daily marketing work himself- it's a wage not profit -

        On the other hand if the $13,000 was profit made through the work of others it may be a business. What's the business model? -

        Good luck finding someone to give you business valuation advice for free in an open forum, especially with such specific demands for who may IM you? Some might believe this post is be a veiled attempt to advertise your "business" is for sale... just saying.

        edited: You could place an offer to sell your biz in one of the forum classified sections and the market will tell you the value, e.g. what is someone willing to pay for it.
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      • Profile picture of the author Lucian Lada
        Originally Posted by Alexa Smith View Post

        This is surely the kind of business in which the income is derived primarily from one's relationships with one's clients, and one's ability to do the work required in such a way that they keep returning for more services?
        Well, couldn't he sell the persona or the image he has built? :confused: Would the subscribers have to know?

        Hmmm ... I wonder how myob does it. I suspect that because he has so many niches he probably experienced some problems like writers leaving, so he must have found a solution to continue to write articles in that niche. (Probably he puts up a disclosure or something?)

        Update:
        I just noticed he said he's selling his writing business. I thought he's going to sell his writing business as well, and assumed he had another type of business to sell first.
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      • Profile picture of the author CyberAlien
        Originally Posted by Alexa Smith View Post

        I'd love to know how you worked out this figure?! :confused:
        I'd love to know that too lol!

        That estimate is completely off base unless no money was made in the first 9 months and they earned about $4000-$5000/month during the last couple months. And in that case I still wouldn't even consider paying that much because there isn't enough history behind the earnings lol
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  • Profile picture of the author Seatbelt99
    I wasn't expecting 30,000, that's for sure. The 10k range is a figure I had in my head, but I'd have to talk to prospects to describe what the business model entails.
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  • Profile picture of the author Seatbelt99
    In my signature is the thread that shows a part of my business model. Some of the work is outsourced, as you can see. The first few 'tiers' of writing I outsource to a few specific writers that I had hand picked. Obviously if it was just me doing the writing, I wouldn't be able to sell that.
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