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Looking to sell a part-time business in the tourism niche in Cork City...

  • 25-07-2023 10:45am
    #1
    Tara4
    Registered Users, Registered Users 2 Posts: 60 ✭✭


    I've created a part-time, sole-trader, tourism business in Cork City. Revenue around 7k this year, custom coded website, custom coded state-of-the-art booking system. Good Google Results page ranking, very, very low cost base.

    In other words, a turnkey business solution for someone who wants to run their own business part-time in the city and can handle the tourists. Specifically, I run a tour of the city. Tons-and-tons of room for rapid expansion if you put in the work.

    I'm moving on because I have another idea in the same niche that expands on this revenue model. I have 40+ TripAdvisor/Viator reviews with an average 5-star rating (39 5-star reviews last time i looked).

    I'm considering selling this business. I'm looking for advice. I've plowed most of the revenue back into the business ie website, booking system, google ads etc. How should i go about valuing the business?



Comments

  • #2
    Mick Tator
    Registered Users, Registered Users 2 Posts: 716 ✭✭✭Mick Tator


    It’s not going to be worth much, if lucky probably around what you’ve invested in the site plus a percentage value of prepaid tours. Add a little bit more for goodwill because you’ve good web & TripAdvisor exposure. For a non-service business usually  it would be a multiple of the profits plus something for hard assets. The issue that you face is that it is a sole trader operation, the business is primarily you, your personality/charm/local knowledge and probably your local contacts with hotels, etc.. Without you there is only the ‘backend’ assets. Scalability also is an issue. To grow you’ll need more staff, train them, retain them in the off/slow season and prevent them from starting up in opposition. If you are expanding ‘in the same niche’ why not hold on to it, perhaps take in a partner on a profitshare and get them to do what you are now doing? Surely there would be synergies between the new and old businesses?



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