I've been running an ecommerce business for 3 years now and get good sales from Amazon, but have been investing every penny I've earned back into more inventory. I feel it might be the time to cash out soon and use the funds to start a new business and do it bigger. But I don't know where to even start with finding out how much my business is potentially worth. And I don't want to listen to business brokers give me a sales pitch disguised as a "free valuation", at least not until I've made up my mind.

A good starting point for determining valuation is 3x your annual profits. That said, you may find a 1 - 2X variance up or down depending on the type of product(s), the category or categories you sell in, your total number of SKUs, etc.

Answered 3 years ago

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