Should you close or sell your business?
Sometimes we just come to the end of the lifespan of our businesses. Maybe you have personally outgrown it or life situations have changed and you’re ready to move in another direction. No matter the reason, my advice is to always seek to find the value of your site and weigh the benefits of closing it all together or selling it.
Over the years I have watched SO many entrepreneurs build their businesses and decide to close them because they no longer have the time or energy to dedicate to it. Many of them have chosen to just close the business altogether because they don’t know where to start in the process of trying to sell it.
In the end, the options are really clear…
- Close your business and walk away.
- Sell your website on Flippa or our newly established website Premade Business
But does my website have value?
The truth is that an established business with ANY kind of income or audience has value even if it doesn’t generate income. And just think about all of the time, energy and love you’ve put into your website, social media, products, content. WOW. It can really add up. And, to someone out there that footwork has value.
What is my website worth?
The valuation process changes with the market. Sometimes websites are worth ten times their monthly income and sometimes they are worth thirty.
There’s a lot to be said for social reach too. Sometimes sites have no income and are worth a mint because they have an active social following.
Brandability, domain and traffic are also a factor. Fortunately for us, the valuation process for things changes every day.
As an example, exact match domains use to be worth a mint, but now the trending domain style tends to be creative mixes of terms.
Either way, there’s no magic formula to calculate exactly what your site is worth, but we can figure a roundabout value from the following:
- Age of the business.
- Social presence and reach.
- Product or service. Is it hands off or very involved?
Wow, that could grow into a long list, but you get the general idea.
Let’s not forget that your personal idea of the value of the site is also a factor. If you want or need to get four figures out of your site, you’re most likely not going to let it go for three. Chances are you already have an idea of the amount of skin you have in the game and how much you’d like to get for your website. And that’s okay so long as it’s realistic.
Where to start…
If you’re reading this you’re probably already thinking about listing your business site for sale and have no idea where to begin.
You’ll need to have the following information ready to go.
- Monthly income and expenses for at least the last year.
- List of domains and any other assets that come with the site.
- The hosting situation.
- Sources of income (affiliate, product, service).
- Social numbers.
- Google analytics (hopefully it’s already installed).
- Be able to answer information about your suppliers. Can they be transferred? Will they work with a new owner?
- Do you have any trademarks and copyrights and are you willing to transfer them?
- Skills the new owner would need to have.
- Are you willing to work with the new owner and if so, for how long?
Should You Just Close it?
If all of what you just read about listing it seems to stressful, just take a step back and think if you really want to sell, if you’d enjoy the extra income from the sale and if you’re ready to move on. Would you feel worse if you closed it down and didn’t gain anything from it?
If you think closing your business is the best option, here’s a few questions to ask yourself…
- Is the website so new that there’s nothing happening – no social following, no income, no traffic.
- Is the domain or branding of no value? Even a site with all of the first point could still be worth something if the site is gorg.
- If you are completely out of energy to deal with it.
- If you’re okay with the idea that someone else might reestablish the business or blog in the future.
- If you feel like the idea or concept is/was a failure.
As always, feel free to ask questions in the comments.