What is my business worth?

What a buyer is paying for

A buyer is paying for future profit, and how sure they can be of it. Anything that makes the profit less certain pulls the price down.

What pushes the price down

• The business depends on you for work, quotes or decisions
• Profit looks good only because you work long hours for no extra wage
• Big customers who are loyal to you, not the business
• No written processes
• Contracts, licences or logins in your own name
• Messy or late books

What helps

• A second in charge who runs a normal week
• Repeat work and service agreements
• Clean numbers that show profit after a fair wage for your work
• Systems a new owner can follow
• A spread of customers

How value is worked out

There are a few common ways to value a small business, and the right one depends on the business and the buyer. Your accountant or a qualified valuer can tell you which applies.

In the program, the Business Review gives a rough range of what the business could sell for today and what drags it down. It is a rough guide, not a valuation.

The quickest way to lift it

Find your flat spot and fix it first. For many owners that is Systems or Administration. Take the free Exit-Ready Score to see yours.

Questions owners ask

How much is my business worth?

What a buyer will pay for its future profit, and how sure they can be of it. The less it depends on you, the more it is usually worth. Get a proper valuation from a qualified valuer or your accountant.

Is there a rule of thumb for my industry?

There are rules of thumb, but they vary a lot and can mislead. Ask your accountant or a valuer about your business.

Can you value my business?

No. I am not a valuer. In the Business Review I give a rough guide to value. It is a rough guide, not a valuation.