What is the value of a small business? Many feel it is the value reflected by its ability to provide the owner with a living income. In some cases that income replaces that of a job that has been lost. (this is commonly known as “buy a job”).
But the value of a small business is more than just that. Consider the rise in self-esteem that being the owner of a business gives an individual or family. The value of a small business gives a sense of pride, and the value of a small business gives a sense of control and self-determination of one’s life and one’s future.
And of course, many small businesses produce a profit far in excess of a living wage. Therefore the value of a small business can grow over time as it starts to produce super profits and it can then produce large capital gains for the owner when the time comes to sell the business for a profit.
Rent roll valuations are one of the most common valuations done by Business Valuer Network members. We value many real estate practices each year and have a broad database of