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Exit Strategies: When looking to sell my company, how can I determine its value if it's service based and has no subscription model?
RS
RS
Rob Stephens - Freelancing and Digital Marketing Advice, Digital Marketing Consultant answered:

The value of your company is usually determined by multiplying your revenue (the multiple depends on the industry). You might also take into account other factors such as assets owned. Since, you haven’t provided this info it’s impossible to answer a specific sale number you could achieve.

To maximise your particular business, I would try to introduce monthly retainer services (or subscriptions as you call them) with as many clients as possible. A website maintenance service for example or a complimentary service such as SEO or social media. If you have X number of clients paying you X per month, it’s much easier to work out a value for your agency.

As you’ve probably guessed already, it’s difficult to measure the worth of an agency if all the work is one off projects that come into the agency randomly.

For a limited time I’m offering free advice for 20mins.
VIP link: https://clarity.fm/robstephens/scale323

Rob Stephens
robstephens.com

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