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?
Although there are several valuation methods, any business' value is determined by:
- Net worth
- 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.
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!"