- July 5, 2021
- Posted by: Stratford Team
- Category: Business
Before even thinking about selling a business, it is essential to know how much it would be worth in the first place. After all the work put into building a successful business, a reasonable person will want to sell it for a price that reflects the amount of time and money invested.
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How Value Is Determined
Many people see the value of websites and online businesses as subjective, meaning that the market dictates their worth. For example, a rare item might be worth nothing to one person and then worth millions to another. It truly depends on what the market is willing to pay. Although, valuing rare items that do not generate cash flow is much more subjective and difficult to value. This is entirely different when determining how much a profitable online business is worth.
When typically valuing an online business, the primary factor will be the monthly or yearly…