What would a business that was generating 5K a month be worth to you?

profit

Here’s an interesting question for you.

What would a business that was generating 5K a month be worth to you? How much would you expect to pay for a business that regularly generated 5K a month? One that you could buy and then spend around 10 hours a week on growing?

There are many ways that you can value a business, but one of the most common is the PE ratio (price to earnings) which basically says that you should multiply your normalised profit by 3 to 5. So 5K a month is 60K a year turnover.

Let’s be really pessimistic and assume that 30K of that is normalised profit for your first year, taking into account startup costs, 3 months work to get it to 5K a month and an ad spend of up to 1K a month. Using the bulk standard PE calculation this online business would be worth between 90K and 150K if you were to buy it. That’s pretty good going, right?

Of course, selling a business always depends on finding the right buyer at the right time, who is prepared to pay the right price. And regardless of whether you are planning on building an online business to keep or to sell, I can show you how to use your existing content and knowledge that you already have within your business to build something that is potentially worth 6 figures within a year.

What’s stopping you?

Posted in Business. | Comments Off on What would a business that was generating 5K a month be worth to you?

Comments are closed.