Do Home Based Businesses Get Higher Valuations?

admin | Jan 03, 2009 | Comments 0

Based on my experience as small Business Broker in Arizona, I would say that established home based businesses do tend to command and support higher valuations than some other business categories. Here are a few of the the top reasons I believe why this is so.

Home based businesses tend to have much lower overheard and higher profit margins than your average service or brick and mortar retail business and therefore support higher valuations.
Established home based businesses are very popular because of the flexibility they can offer the buyer in being located anywhere and are therefore are in high demand and sell at higher multiples.
Home based businesses are perceived as offering the owner more freedom, flexibility, and a better lifestyle than other types of small businesses.

Related Resources:

Research a list of top home businesses to start in 2012 including popular categories such as senior care and product sales and distribution.