How Much Is A Business Worth

Written by Patricia Skinner
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First Venture Questions

When preparing to buy a business there are many questions that need asking. Perhaps the first one you'll want to ask is how much? But how much is a business worth? Do you go by how much similar businesses have been going for? Do you take the word of the vendor? Do you assess how much a business is worth by estimating how much profit you'll get x-years down the road?

Or do you decide how much a business is worth based on a combination of all of these figures. We'd say the latter. But what a task to work all that out. That's why Business Valuation Guide strongly advises entrepreneurs like you to enlist the services of a professional to help you work it all out.

How Much Is A Business Worth Investing In?

There's always an element of uncertainty attached to any business venture. Indeed, that's the most enjoyable part for many of us, taking a venture and working with it in the knowledge that, when all is said and done, the outcome is largely a matter of chance. But for most of us, there are reasonable odds and unreasonable odds.

When buying or selling a business, you can move your chances out of the realm of unreasonable odds and into the realm of "fairly sure thing," if you'll only do it right. What do we mean by do it right? We mean don't leave the matter of deciding, "How much is a business worth at this juncture?" Hire a professional business valuation expert to do this for you and you'll be sure.

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