Question by Cisco: How do I go about selling a very small home-based business?
What is the best method to sell a very small home-based business? I think it may be too small to go through a business broker, so not certain what the best way to market or advertise the sale of the business. Also, what is a good way to value a business with very little in assets and no debt. Sales of about $ 13,500 a year for part-time work from home.
Answer by Joseph T
I would try the local paper, and Craigslist
Your valuation should be based on client retention and growth. If you are selling a business that will retain it’s clients without much work then you should value it 1.5-2.5 x annual revenue because with some growth the person who buys it can get their investment back in about 1-2 years and be profitable from then on.
If your business takes a lot of work to retain clients or if clients just don’t stay that long no matter what you do then you should be happy to get 1.0 x annual revenue.
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