Home – New Forums Other discussions How should I go work out the value of my business to sell it? Reply To: How should I go work out the value of my business to sell it?

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Dave Gillen – Former FS Concierge
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Hi [USER=86837]@Allsortworkwear[/USER] Some great info given already.

First you need to make a decision about whether it’s worth selling right now.

For an initial calculation I would start with a value of 12 months of profits (all income minus expenses). Include labour in the expenses (use $20 per hour for all the time you spend working in the biz). This will often eat a lot of the profit and greatly reduce the value of the biz.

If the business is super automated then that adds a lot of value because less of your profit is eaten.

Now you have a ballpark on value you can make a decision about what to do. If the value is quite low (and income is growing) then waiting 6 months will directly increase the value for you as [USER=78928]@Paul – FS Concierge[/USER] has suggested.

Good luck!
Dave