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indiapurple
Joined: Jun 15, 2007
# Posts: 1
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Posted: 2007-Jun-15 15:34
Hi, this is my first post so please be patient! I have an online store selling health and beauty products with a co.uk domain. It is almost one year old and to date have had £15000.00 sales from 749 orders. All my products appear on page one of Google. It requires little work as it is (about 2hours daily at most), but its development potential is vast. Stock is easily stored in a small spare room. My question is how do I value my business and do you sell your stock seperately as you would in a B&M shop? All advice appreciated.
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mj1256
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Joined: Jun 05, 2006
# Posts: 918
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Posted: 2007-Jun-16 03:35
usually it based on your customer list with more value placed on the repeat customer. Then you need to know what the customer aqusition cost is for your industry.
a basic equation,
if you have 1000 customer per month and the industry cost per customer acquisition is $40.00 per, you can value your company at $40,000 dollars, plus the wholesale cost of your inventory and the depreciated value of any equipment you have.
Your customer list is more valuable than your business itself. A competitor would buy your customer list and fold your business.
You didn't say what time period it took to have 749 orders, is that a month, 6 months, a year?
If its a day or maybe in a month, you have something. If it took more time to get that number, sorry, but you don't have any real value yet.
my opinion
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