How businesses are priced
Small businesses usually sell for a multiple of the yearly net profit the owner takes out. The multiple grows with how predictable the profit is: long history, steady or growing numbers, many customers, little work for the owner.
The multiple drops when the business depends on the owner personally, on one client or one traffic source, when it is young, or when revenue is falling.
Typical price / annual profit
| Type of business | Multiple |
|---|---|
| Websites & blogs | 2.5× — 3.8× |
| Online stores & e-commerce | 2.0× — 3.5× |
| SaaS & software | 3.5× — 6.0× |
| Mobile apps & games | 2.0× — 3.5× |
| Social media & channels | 1.5× — 3.0× |
| Agencies & online services | 1.5× — 3.0× |
| Cafés, restaurants & bars | 1.5× — 2.5× |
| Shops & retail | 1.5× — 3.0× |
| Beauty, spa & fitness | 1.5× — 2.5× |
| Car services & washes | 2.0× — 3.0× |
| Hotels & hostels | 3.0× — 5.0× |
| Production & manufacturing | 2.5× — 4.5× |
| Service businesses | 1.5× — 3.0× |
| Education & healthcare | 2.5× — 4.0× |
| Franchises | 2.0× — 3.5× |
| Other businesses | 1.5× — 3.0× |
Selling or buying safely
- Show real numbers: bank statements, analytics, payment-processor reports. Buyers pay more for verified profit.
- Keep the name and link private until a serious buyer asks — use the confidential option when listing.
- Pay through a licensed escrow service or a lawyer, never by a direct transfer before the handover.
These are rough market ranges for a first orientation, not an appraisal. The final price depends on verified figures, risks and negotiation.