Tuesday, August 28, 2012

How could you sell a profitable freelance to business to another freelancer

How could you sell a profitable freelance to business to another freelancer?
I have a 12 year old freelance web programming business that generates about $40k per year in my spare time. Most importantly, I have about 35 satisfied clients, many for a very long time, that contact me to do work regularly. The business could really be built up with these clients as a starting point if someone were inclined (I have a day job). How could I price and/or sell this business as one entity?
Small Business - 1 Answers
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1 :
While your client list might be worth something to a prospective buyer, you have little to offer in the way of assets. Unfortunately that translates into a low figure (a fraction of your yearly projected take, what that percentage is would be up to the person making the offer). Also since your programming experience doesn't come along for the ride both your current clients and your prospective buyer should not expect a seamless transition, which will further diminish what someone would be willing to pay. On the other hand, if your clients have little or no expectations and your prospect has great ambition, then what you had to offer wouldn't matter much anyway. Not to sound harsh, but what boils down to a speculative client list just isn't worth a great deal. In a hot market you'd be lucky to get $10K, right now you'd be lucky to get a bid in the hundreds (and you know and we know that you are not going to bring in $40k again off those clients any time soon in this economy

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