eBay Versus Purchasing a Small Business

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There is a lot of confusion as to how much it costs to purchase a business and how much a business should return to you in profit.

Let’s look at a Subway franchise as an example.

The average Subway will cost you around $185K to open and generates on average around $8,000 per week, approx. 400K per annum. Profit on Subway is approx. 22% leaving a net profit of $88,000.

The rule of thumb is a business can be bought or sold for 1 to 4 times its yearly net profit. i.e; If a business generates $100K per annum, it can be purchased / sold for $100K to $400K .

So in the Subway example, $185K buys you $88,000 per year income before tax. And that is if all goes well. Many people have lost their house when their Subway franchise failed.

So why did I choose eBay?

This is why. 10 minutes ago and for less than 200 bucks, my research company Waterhouse Research sold the information for an eBay hot product which has made the eBay seller $9,383 in the last 12 months. That is just one product returning a profit of $9,383!

Just 9 similar products yields more profit than setting up a Subway for $185K.
You can also make huge profits with the help of ebay mobile selling.

Ok some people do not want to go to the effort to setup an eBay business from scratch as they may not have the time or knowledge. Well… if that is you, have a look at https://neilwaterhouse.com/e-biz-in-a-box/

Please let me know your thoughts and comments
Best regards


Neil Waterhouse

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2 Responses to eBay Versus Purchasing a Small Business

  1. chris Johns says:


    I have been trying to reach you several times, emails, linkedin. I have visited. Sydney several times in the past month, thought we could sit down for a chat.

    Chris Johns

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