Small business sale advice

[fridaypassion]

Having a bit of turmoil at the moment! I've set up and run a car related website over the last 5 years. It does rather well returning a profit of about 4-5k per year so not bad for something I can comfortably in my spare time. Recently I've been getting a bit of an itch to sell up and try and use the money to fund another business.

I've had an offer to buy it for 5k. Do I sell? I think its probably worth more than 5k but its a type of business thats not easy to find a buyer for so I'm tempted but not 100% convinced..............My main concern is that I want to be able to get something else up and running but I dont yet have the idea for business number 2!

[RichBurley]

Def sell it!

[fridaypassion]

Any meat to stick on the bones of that input?

[ymwoods]

But it makes just under that a year? why not let people moderate etc for free (as some do here) which works for an article site aswell, and would free up time. Then use the years profits to fund the next venture.

Either way you will then always have that site in your portfolio and ready to expand if needs be.

[fridaypassion]

Thats the thing I think it can only grow. Ideally I'd want to put the cash into something that will have more potential for growth. Its a single model website so although it will grow it will ultimately always be limited to some degree.

[jon-]

5K for something that presumable needs very little maintenance and earns 5k PA with good potential for growth?

You'd be mad to sell up TBH. I'll give you £5100

[ymwoods]

Ok, without knowing the specific website, how about not expanding that specific site (if you really feel that it has reached its peak) but expand it by creating a twin site on a different model of that car or completly different car altogether?

For example, a friend of mine at Uni runs Towers Nerd (or Freak, one of the two) and because that website has reached its peak, he is now working on creating twins of the site for other UK Theme Parks. He uses the sites same platform and code etc and still keeps the same general layout but changes colours, images and content (obviously)

Having lots of 5K sites is just as good isn't it?

[Frimley111R]

jon- said:

5K for something that presumable needs very little maintenance and earns 5k PA with good potential for growth?

You'd be mad to sell up TBH. I'll give you £5100

+1 The buyer will get his money back in 12 months. I'd want at least £15k.