How would you value your business or indeed ANY business? Is there a format that you would generally follow or would you hold out for as much as you could get?
Here's an example, how much would you say it's worth?
My friend sells £140K stock on eBay every month his profit margin is 10% netting him £14K/month, I'm guessing he has some overheads to cover so lets say he's making £10K/month... how much is the business worth?
James.
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Its impossiable to really say of the figures you have given really, knowing how much profit being made is only a part of the puzzle.
Normally things the business owns would be an important part of the puzzle also.
Thing with only having profit made as figures to work from is whos to say he can keep that, what if tomorrow for some reason the produt he sells dont sell anymore, what if there is other companys that are now able to offer better deals and have taken some of his customer base.
Just cos he sells £140K stock a month ATM that is not a garanteed turnover, and is 10% may have to drop to hold onto a deasent level of customers due to other compatition growth.
How much is a business worth?
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