e-commerceI am thinking about buying a business for clothing.
Currently the site makes no revenue and the brand is unknown.
I would like to pay for the webdesign, shop software and running relationships and system between the company and the producer of the clothing, since I am not good at those things.
How can I evaluate the value of these things, keeping in mind that the business makes 0$?
Sometimes its not just the revenues but also the inventory and tangible and intangible assets. You have to consider a lot of things before a price can be judged. As a buyer the less you can pay the better and as a seller the more he can make the better. An morally idea deal is the one that doesn’t hurt both the buyer and seller.
With zero revenue and zero profit, the company is essentially worth (to you) what you’d pay to reproduce what they have, while factoring in whether getting it right now vs in a few weeks or months is valuable.
Imagine the time and money it would take you to grab an off-the-shelf CMS with the requisite plugins or modules, involve a graphic designer to give it a face list, place a few phone calls to connect with the suppliers, integrate your system with their’s, and so forth. Then use the figures you’ll come up will give you a ballpark figure of what it might be worth.
In the event you’re not technically-minded, be wary of purchasing software that wasn’t developed using a reasonably standard and well-documented framework or content management system. (It’s not easy to find a developer that is willing (or able to) to learn the innards of custom software.)
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