What is your Business Worth? Business Valuation Trends Inside

What is your Business Worth? Business Valuation Trends Inside

Here’s an interesting question for you: How much does your business worth? Well, if you asked SnapChat’s founder, they the sky’s the limit, leaving valuators and analysts scratching their head, trying to make sense of the calculations.

For the rest of us, we determine our business growth based on the profits we do. Well, at least, for me, this is how I measure a business for acquisition intention. For me, a business should worth 2-3 times the annual profits; this is the well accepted general rule of thumb for business valuation. But as everything else in business, there are trends on it. So, what’s the trends right now?

Both Valuator.com.au and DigitalExits.com have come up with an incredible resource that any entrepreneur can use. As most of us know, understanding how much our businesses are worth is extremely important. Not only do we need this valuable knowledge when we sell our businesses, but it also tells us how much we gave grown, if we have hit our goals, and where we stand among our competitors.

Check this out:

Business valuation infographic

So, how much is YOUR business worth?

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