What's It Worth?

Ronald wants to sell his business. How much more will it bring if he has 639 clients?

QUESTION: Ronald asks how he can determine what to sell his carpet cleaning business for. He has 639 clients and some equipment.

ANSWER: The 639 clients don’t factor into selling the business except to the extent that they help you build a profit. Your business only has value to the extent it makes a profit. Take your profit times 5 and that’s a good estimate of how much you can sell it for. Your best shot to sell is to a supplier, customer or competitor. In this case, probably a competitor, and possibly a customer.