How much should i sell my business for?
I currently own a small kiosk at a mall where I sell inspired/replica handbags. I have considered selling this business and trying out something new. I started the business in November of 2007 and I have made around $7,000 every month till now. The total profit comes up to $42,000 not including my expenses. It has not been a very good start since not alot of people knew about me.However with everyday passing by more and more people are coming and buying new purses. I have people who are interested in purchasing my stand/kiosk but I dont know what to tell them as far as the pricing goes. Please help me by trying to figure out a figure that i can at least tell my intersted customers... I would apreciate any help! Thank you!
- Anonymous1 decade agoFavorite Answer
its better to consult a broker...he/she will usually gives you an average of how much other small business like yours are selling for.most likely, he/she will look at your year income and incurred expenses to come up w/ a list price. ask your accountant or tax preparer to prepare a Profit and Loss Statement...thats going to be the first thing that a potential buyer will ask for...along with the list of your monthly expenses and your total investment you put in to your business, like your deposits to your landlord, renovations you did etc.... good luckSource(s): just closed down my own small business last month
- 1 decade ago
When I have been approached and asked to sell my business, I am always told a good rule of thumb is the monthly income for the past six months divided by two. So in your case...7k times 6 months is 42k and if you divide it by two, it would come to 21k.
Hope this helps,
- 1 decade ago
There are a lot of different theories as to how much a business is worth, but some peole use 1 years gross sales as a starting point.