Though many formulas and tools can help you determine the selling price for your small business, there is no magic bullet that will come up with the absolute correct price for every instance. The final price ultimately depends on how much the buyer wants to buy and how much the seller wants to sell.
Yet there are a number of ways to value your company and determine your asking price. For example, find out the selling prices of similar businesses in your area and use them as a starting point. Or contact the national trade association for your industry (if one is available). These organizations usually keep detailed statistics and are more than willing to provide information to members or potential members.
You can also consider employing the services of a professional business appraiser. This may lend more credibility to your initial asking price and allow you to keep the reins on sale-price negotiations.
To read the full story on AllBusiness.com, click here.
Want to improve the way you run your business? Entrepreneurs, academics, and consultants from diverse industries offer practical advice on a variety of topics each business day.
To submit a tip for consideration, first check our archive of previous tips to make sure you're not repeating a tip someone has already contributed. Then send the tip to Small Business channel contributor Michelle Dammon Loyalka. Because of the volume of material she receives, she may not respond to each individual.