What is your business worth?
The estimated resale value of your business, and what each recurring customer adds to it.
Your business
Those who come back: contracts, seasonal maintenance, biweekly cleaning.
What is left once everything is paid, including your salary.
How many times annual profit a buyer would pay.
Each recurring customer adds
$1,426
to the resale value of your business, not just this month’s revenue.
Annual profit per customer
$475
Average customer lifetime
4.0 years
Lifetime profit per customer
$1,901
The whole business
Annual recurring revenue
$105,600
Annual profit
$19,008
Estimated value
$57,024
Ten more recurring customers and your business is worth $14,256 more the day you sell.
How a buyer values a service business
A buyer usually starts from annual profit and multiplies it. Small residential service businesses often sell for a few times profit. The multiple moves with four factors: recurring revenue, independence from the owner, systems and customer concentration.
Why each recurring customer counts twice
A recurring customer brings revenue every month and raises the price a buyer will pay. Ten more recurring customers change both your monthly income and your exit value.
An order of magnitude, not an appraisal
This calculator is for thinking, not for setting a price. If you are close to selling, get a real valuation.
Questions
What multiple should I use?
How do I raise my multiple?
Essential $499/month, or Growth $1,999/month with managed ads and Google profile. Prices in CAD, plus GST/HST. See both plans