Most business owners have no clue what their business is worth. I guarantee you that they have a number in mind and it is usually higher than actual value.
The answer to the question is: Your business is worth what somebody is willing to pay for it. Have you ever seen those car auctions on television? The ones where celebrities are roaming the floor and obviously arrogant rich people are exuding an aura of self grandeur? If not not then I am sure that I have accurately painted a picture for you. These are the auctions where a 1972 American muscle car will go for $90,000 and the same muscle car goes $20,000 in Auto Trader. What is the car really worth? Its obviously hard to say from this limited amount of information, but rest assured there is snowballs chance in hades that an Auto Trader reader would pay $90,000 for the car.
You don't have to subscribe to Entrepreneur Magazine or Inc. Magazine to know that a business losing money is not a good investment on the surface. There may be circumstances where a buyer would pay top dollar for a business losing money. Perhaps the company has contracts in place that would allow a new buyer access to a tough market to gain access. Once again the value is in the details. In this scenario, the buyer is in essence paying the Muscle Car Auction Premium, where as most potential buyers would be ready to pay Auto Trader Pricing.
Determining the asking price for a main street business has a lot to do with the performance of the business and not so much about the intangible benefit it might bring a buyer. Cash flow is king and you should focus on maximizing your profitability to command the highest price possible.
Request a business valuation at http://www.go4big.com/form_viewer.html?formid=41
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