What is My Carpet Cleaning Business Worth

Some people that start businesses want to make them last as long as possible, but suffice it to say that there are many that would much prefer to just build the business up, increase its valuation and subsequently sell it to the highest bidder. This is a great way to create a situation wherein you might get the chance to retire a lot earlier, thereby leaving you with enough time to be there for your grandchildren and focus on developing your hobbies and enjoying yourself.

However, before you hastily start to look for potential buyers for your business which provides carpet cleaning Baytown, you need to first and foremost figure out what your business is actually worth. There are a number of techniques and methodologies that you can use to uncover the most accurate estimation of the true value of your profit making enterprise, but perhaps the best one of all is to multiply your annual profits by around twenty. These profits need to be calculated before any interest earnings are accrued, and you shouldn’t include any tax or depreciation related deductions either.

That said, you should definitely take out business expenses since these are traditionally not included in profit reports. Hence, if your business brings in around a hundred thousand dollars in profit each and every year, you can easily get around two million dollars in exchange for it if you find a serious enough buyer. It might shock you to hear this, but businesses with six figure profit intakes can turn you into a millionaire in the blink of an eye, and once you reach this level of wealth there is nowhere to go but up.