After you have successfully navigated the online business world, created a viable business and begun to grow, you may well have a think about selling out, paying yourself for all of your hard work, but When? How? and what price should you be looking for?

While there are many formulas, valuations strategies and sell out estimates it all really comes down to who wants to buy your business and how interested they really are. You may have a business which is in demand at the moment, or the markets may have moved on to another area - the online market is much more fickle than most and susceptible to trends. Finding the right time and place to sell your business can be just as important as the business which you are actually selling!

So what kind of valuation should you put on the business?

There are a number of valuations which you can put on your business, with the traditional figure being 10 times the net monthly profit. While this is quite commonly used, it can be worthless if you have just moved into profit, or your business is growing but still loss making - it really does depend on who wants to buy it, and how well you can actually market it.

When to sell out?

It is probably best to sell out before your business reaches its peak, leaving something for the buyer to get their teeth into. Unless you leave something for the buyer, what reason is there for them to actually buy it?

In summary, there are many ways in which you can value your business, but ultimately it comes down to who wants to buy it. There are some great online forums out there like Digitalpoint and Sitepoint who will give you exposure to a number of possible buyers, although if your business is large enough you could go to a professional “middle man” to sell on your behalf, although they would take a commission.

There are a number of different factors to consider when selling your site, and they all need to come into play at the same time to get the best price. Good luck!