Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and beginning April 20th, 2021 (Eastern Time) the Yahoo Answers website will be in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.

how much do u ask for a business?

that has been in business for only 2.5 years and not at its full potential? We are up to $400,000 gross sales last year and hope to be at $650,000-700,00 by year 5. How much should I ask for? my inventory is about $300,000

Update:

inventory is new producted needed in a certain field, and will stay current for several years, and new styles always coming in. net profit was small, maybe $30grand, but each month its growing and having been in this industry I know there is a market for the product, its just getting accounts, which we are doing.

4 Answers

Relevance
  • 1 decade ago
    Favorite Answer

    It is impossible to answer that question without first knowing the exact type of business you have, its location, and copies of your past and current financial statements. 1. Gross sales volume means very little, unless there was a profit on those sales. 2. Inventory value means nothing, unless it is known for a fact that the inventory is still current, fairly valued and salable.i.e. Obsolete inventory is next to worthless. 3. Projected sales are just that...projected. Projections mean little unless there is credible evidence that the projected sales will indeed occur.

  • 1 decade ago

    The most likely scenario is a multiple of your P/E (or as you don't necessarily have a share price, a multiple of earnings). It varies a lot from industry to industry, but to get a ball park, look at 2 to 10 times earnings.

    If you check the web on "valuing a small business" you can find more detailed/sophisticated analysis/valuation methods.

  • Anonymous
    5 years ago

    If you owe delinquent taxes and submit an IRS Form 433-B, Collection Information Statement for Businesses, there is a place to put a website address but there is no place for it on any tax return.

  • Anonymous
    1 decade ago

    IF I REMEMBER CORRECTLY IF YOU SELL IT ON THE STOCK MARKET THE PRICE OF A GROWING BUSINESS IS 10 TIMES THE VALUE OF THE TURNOVER

Still have questions? Get your answers by asking now.