When you’re selling a business, there are a number of priorities at play. You may, having spent lots of time building up your brand, want to ensure that your company’s ethics and values are continued with a new owner. You may be worried about the security of loyal employees and customers once you’re gone. You may even be anxious about what life after your business is going to look like.
However, the bottom line is likely to be getting the maximum sale value for all of that risk, hard work and initiative you have had to put in over the years. So what is your website worth?
The value of your website is usually a multiple of your monthly net profit. However, there are lots of factors that can affect the multiple figure used. Here are just a few of them:
The money your company currently makes is a big factor in determining the worth of your website. Not only do the figures need to be positive and showing an upward trend in order to get the best sale price, you also need to provide an explanation for the figures you provide. If there was a dip one month can you give a comprehensive account of what produced it? Making your financials as transparent and logical as possible will reassure potential buyers.
Traffic and SEO
The amount of traffic coming to your website affects the sale price of your business. Even if your conversion rate isn’t so hot, a high level of traffic shows a buyer that there’s room for improvement. A high ranking for your chosen keyword phrases also has a big impact on your business worth. Organic traffic has shown to produce a variety of benefits for your company, not least a long-term stream of traffic to your website.
If you’ve been up and running for just six months, chances are buyers will be a little wary about investing their money. In contrast, a business that has been in operation for five or more years shows longevity. A buyer will see that your company has weathered ups and downs in the market as well as seasonal changes in demand. A longer standing business is a much safer bet and therefore will command a higher sale price.
Level of Risk
Lower risk makes your business a more attractive prospect. An updated market analysis will show how you position yourself within the market, your current market share and how your competitors are doing. Buyers will want to know that customers and key employees can be retained after the sale goes through. The same goes for any contractors or suppliers and the terms on which your current transactions are based. Getting agreements in writing, ensuring that your business will run just as well without you and providing comprehensive documents on current market risks and opportunities will all help to achieve a higher price for your business.
Using A Business Broker
Getting a little expert advice is the best way to value and sell your business. A business broker like Digital Exits can help you to put a value on your website. They can also market your company to a relevant audience of prospective buyers, helping you to sell your company for the maximum price possible.
There are lots of factors affecting the worth of your website. In order to maximise the sale price, you need to ensure that your website is functioning perfectly, that your financials are in order and that you have an advisor on hand for the more technical aspects of a sale.