How much ?

[chrised88]

firewood business with turn over around £22k/year with around £10k profit . Customer based of around 70-80.

 

Do you think this business is worth something and if so how much ?

 

any feedback most appreciated

 

regards

chris

[armybloke]

If you ever unsure about stuff like this speak to Businesslink Business support, information and advice | Business Link they provide a free service for the self-employed. Good luck

[Marko]

If you are selling "the goodwill" alone then not much. You could start up again the day after and take back all your customers.

 

If you are getting out of the business and selling the premises/lease, associated production and delivery kit etc then it would have a decent value - IF you can find someone daft enough to buy hard work .

[chrised88]

thanks guys

yea big IF ! no one wants the work these days ......... so IF that would be the case do you think a year profit is about the value ?

[Robert_S]

What equipment, if any is with the business?

[windfall]

Its normally 3 times the profit but in these times i think you need to start thinking a years profit. However as has been mentioned you have not stated what raw material supply, machinery, premises or delivery vehicle is included.

 

If its just the 70-80 client database and your telephone number you are selling then you are going to have to be lucky to get someone to pay £10k for that. IMHO of course.

[chrised88]

thanks guys. i agree a database is not worth much especailly in this climate, however the business has approximately doubled each year for the last 5 years so hopefully keep this trend up !

there would not be much kit for sale alongside it in this instance as it would be kept for other duties.

i think the answer to my own question is , probably not alot of value as of yet .....