How to put a value on free?
December 12, 2013 6:58 AM Subscribe
I run a daily free (tips appreciated) walking tour and would like some ideas on how to work out how much it is worth as a business.
posted by anonymous to Work & Money (9 answers total) 4 users marked this as a favorite
I've been running a free daily tour, 6 days a week for the last 3 years and might find myself in the position to sell it as a going concern but I don't really have any idea on how to value it.
The facts and figures:
- tour runs once daily, 6 days a week
- in 2013, I've given 187 tours
- 1100 tourists
- average tip of $12
- total annual income approx $13000
- outgoings: none
- website, SEO optimised and front page of Google for most " walking tour" search combinations
- #1 for walking tours on Tripadvisor for the city in question
So the question is, what is this worth as a business assuming the person buying it is planning to continue offering the same tour? Is there some sort of formula based on turnover / profits? Any thoughts would be appreciated.