Although there are several valuation methods, any business' value is determined by:
- Revenues
- Profits
- Net worth
- Management
- Systems / operations
- Profit evolution
- Competition / market share
- Patents / assets
- Dozens of other factors.
Ultimately, the only accurate value is what a potential buyer is willing to pay for your company. Nothing can beat the law of supply and demand.
I wouldn't agree that the value of a brick and mortar business is determined to physical assets. You can have a nice store with a lot of inventory and lose a lot of money every month.
Question added to topic Your Website •
June 3, 2009
How can I measure the value of my internet-based business?
It is very easy to estimate a value of a brick and mortar business due to physical assets. However, do you have any advice on how to accurately measure the value of an online business?
Zeke Camusio is a serial entrepreneur. The Outsourcing Company, his sixth endeavor, is an online marketing agency that helps businesses make money online. Camusio also pens the blog "Let's Do It!"
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