It is often more difficult to calculate and justify a value on a very small business than one a little larger. Very small businesses are more apt to be ‘buy-a-job’ than are the larger and very small businesses more apt to become intermingled with personal and business until often the two become indistinguishable. Buy-a-Job opportunities will be valued differently by different people from different perspectives; … a lifestyle decision perhaps; what will this pay me vs. what can I make elsewhere, and is it worth it to be my own employer? 

In many ways, the value in a very small business is apt to be that in the eye of the beholder. We offer no way to calculate that value. In fact, we know of no way to calculate that value except to say, regardless of size, a business of any size, typically, will be worth the value of its assets plus the value of its goodwill (if any).

• The value of the assets may depend on a host of variables; share sale, asset sale, book value, fair market value, condition, demand, location, placement, etc. Are they the operating assets of a viable on-going business concern that is being valued as such, or are they the assets of a business that is not viable as a going concern.
• The value of the goodwill will depend on whether and to the extent the business is a viable sustainable on-going business concern, or perhaps, to the extent the business can be credibly predicted to become a viable business concern.

Asset value can usually be accomplished by a definable, defensible method; book value, replacement value, appraised value, fair market value, etc., but goodwill is typically valued on the basis of the business’s ability to generate earnings in excess of wages. In a very small business where owner’s reasonable wages ARE its earnings, goodwill value, if any, can only be left to the eye of the beholder, and to the reason and mutual agreement of the buyer and seller.

see: unprofitable businesses