Looking A price for my company

designersmania · Sep 9, 2008

Hi All,
My business partner and I own a web design and hosting company, we have 150 clients, each has a crisp, clean, professional working website, non template, all custom designed by us, each year each clients pays £100 a year hosting fee and £10 for the domain name, That’s over £15,000 a year we making in hosting fee’s alone,
We close one website project per week, our prices range from £399 to £799 for project,
We have a client database that lists the clients, name address, email, ftp, also tells us when the domain and hosting is to expire, out of our 150 clients only one domain is due to expire in 2008 the rest have been paid in full until 2009, All 150 domains are in the one control panel, and all the sites are hosted on the same server.
The reason I am posting here today, What amount would my little company be valued at.

Thanks

nnh · Sep 17, 2008

designersmania said:
The reason I am posting here today, What amount would my little company be valued at.

Thanks

Two and half times annual turn over...?!

urbanvilla · Sep 17, 2008

5 times your profit............

rob · Sep 17, 2008

urbanvilla said:
5 times your profit............

Hi designersmania, I am Rob. This is where im at...

I was going to say... profit counts, turnover vanity is the old saying

Hosting companies etc are tricky to value as they are ten a penny at the 0-500 client range but if there is a record of UK based valid customers going back several years that would be very very handy.

The only issue with a purchaser is that you make it clear that you will be doing website support (rather than hosting) otherwise the buyer will be getting support emails to change text on pages etc! Likewise a non-compete clause would be a must

Disclaimer: I dont like the web hosting biz model for smaller hosts as it just doesnt add up for me. As they say... im oooout!

julian · Sep 17, 2008

I can't believe you've been running a business for years with over 150 clients and are asking this question - its the same as when I see people asking for stats on domains there about to shed out ££££+ for.. wtf..

golddiggerguy · Sep 17, 2008

My question would be..... Do you have a maintenance contract for all/any of the sites you have built (My fee's I have set would be around £10 - £150 a month depending on size and time you think a site would need)?

If the answers no then do your sums and weep. Even if just 100 paid a minimal of £25 a month thats an extra £30k a year.

I can't think of a sum to put your company at as I don't know your clients and how you are in contact or work with them.

Distant no contact customers more likely to leave, managed, first name basis clients will just grow with you.