Understanding the value of your E-commerce business is a crucial part of being a successful owner. Whether it is because you want to sell or because you are just trying to keep track of where your business stands, getting an accurate estimate is important. However, if you don’t know how to valuate your own business’ worth, don’t worry—you’re not alone.
While there are companies out there that can provide you with free valuations, you might not want to engage a professional right away. That’s understandable. Digital Exits, one of the companies that provides businesses with free valuations, has launched an infographic to make the process of knowing what your business is worth much easier.
When you start seeing the term “multiple” in the infographic, it means the multiple of earning that the business might sell for. So for example, if your e-commerce business makes roughly $100,000 per year. The business could sell at a multiple of 2-3, which gives you an approximate value of $200,000 to $300,000.
Check out the infographic below, it might just provide you with the necessary information to valuate your own business.
Infographic by Paul Garcia from Digital Exits.