Consignment and resale shop owners, even charities who run thrift stores, are remarkably modest when it comes to comprehending how much their business is worth.
I know that you’ve heard me harp on how important it is to know the actual, monetary value of your business, so I’ve collected up some other people’s thoughts on the subject. Natch, they agree with me.
If you hope to sell your business someday, the time to think about increasing its value is now. Too many business owners are shocked to find out the business they’ve been running isn’t worth nearly as much as they thought,says John Martinka, VP of Partner On-Call Network, a Kirkland, WA-based firm that helps small businesses prepare thems
elves for sale. Read more: 10 Ways to Boost Business Value
Even if you can’t imagine selling your business, it’s still vital to keep an eye on how you are building value into it.
[E]very business owner should have a current valuation in his or her desk drawer as a tool for helping make informed decisions about the company’s direction. An objective and independent valuation gives you a much clearer picture of where you’re going. Read more: How and Why to Value your Business
Auntie Kate The Resale Expert 
I’ve purchased and sold three clothing consignment stores in CA. Consignment stores in most parts of CA sell for 2 times annual gross profit before taxes + fixtures and any store owned inventory. A consignment store purchase is largely a “goodwill” and “customer list” purchase since there are usually few physical items included in the sale (the store obviously does not own the inventory unless they buy upfront). I had professional business evaluations done on each of my purchases and they always came back at 2X gross profit. Pretty good rule of thumb if you’re wondering what your consignment store is worth.
Thanks Linda, Rules of thumb can give a place to start and I appreciate your experience and Sharing. But valuing one’s business doesn’t stop there. For example, if a shop has been in business longer, holds an advantageous lease, has a wider mailing list, has good response to direct mail (e- or otherwise), sterling reputation and goodwill, and so on…these will affect a rule-of-thumb estimate greatly.
Nice moustache BTW!