How do I calculate how much my business is worth?
I'm kinda of curious as what to my business is worth, I'm not at a point yet where I want to hire an experienced business valuation professional, I'm just curious to see if it is worth selling.
Does anyone have any tips on some things I can do to get an idea of how much my business is worth?
Good answer Phil. The thing I'd add to that is that your business will be worth much more if you are not in it! By that I mean that if the business relies on you then the purchaser of the business really needs to buy you as well - or at least some of your time. You want to make yourself redundant through effective systems, training etc. You can still work in the business if you want to of course.
Get an Appraisal done. This is something I produce for business owners either as part of our Sale Process, or as a stand-alone line-in-the-sand document. It is 10-pages outlining saleability considerations and an indicative price range, taking into account the market realities of your industry.
Trying to calculate this yourself, without access to market knowledge or comparable data may end in tears...