I have a small transcription business that I want to sell, but I'm not sure how much to ask for it. Searching around for evaluating businesses gives me lots of formulas for calculating the value of the business based on the revenues. But these formulas aren't so accurate for my business, because I do most of the transcription myself, only hiring others to help when it's too much for me. So the revenue is based on how much I work, and it doesn't run by itself.

Really, all I'm selling is my high-ranking (in my niche) website, which is bringing in steady work, and lots of marketing material and accounting advice, as well as a running system (template, logos, standards) that I've gained from hiring professionals or from my own experience, and a couple of returning customers (assuming that they'll be happy with whoever takes it over).

How can I calculate the value of the business?

  • So if it is your work, what are you selling?
    – littleadv
    Jun 9 '15 at 6:45
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    @littleadv As I wrote in the second paragraph, my website and marketing material and some advice.
    – clum
    Jun 9 '15 at 10:14
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    Another important point - because I find the clients myself, I make much more per audio-minute of transcription than typical transcriptionists working for transcription companies.
    – clum
    Jun 9 '15 at 11:13
  • This is going to be guesswork until someone sets a value by buying it. Until then you're making guesses about the value of intangibles like reputation and goodwill and future value, and hoping you can convince the buyer to give you at least that much.
    – keshlam
    Jun 9 '15 at 14:42
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    advice is a hard thing to put a price on, people want to see prior revenue, but since most of the revenue is attributed to your work, which you won't be doing, then there's not much left to price. What you're talking about is called "goodwill" and it is a very difficult thing to estimate. Talk to a CPA who specializes in valuations.
    – littleadv
    Jun 9 '15 at 15:05

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