Hey fellow mustachians! I'm in a somewhat weird position given that I currently own an iOS apps business that generates an average of $133 per month. I also own some stocks.
I want to calculate my net worth, but I don't know how to value my iOS app business. I started it in 2011 and have consistently managed to keep sales churning along. Technically, revenue is up but I'm just being really conservative with my numbers. Things change and it would be kinda silly to assume they'll just keep cranking out cash until I'm dead.
Obviously this is getting into fairly subjective territory since we're talking the basic principles of free market capitalism and the notion that anything is worth what its purchaser is willing to pay for it. I currently don't have anyone who wants to buy my business, and I am not looking to sell it either.
Having said that, the revenue the apps generate would be roughly equivalent to having $22,663 in the stock market invested in something like VTI at a historical average of a 7% return. But I might value them a little higher than that since they're less susceptible to market volatility and pay me in the form of a pure dividend.
Any fellow entrepreneurs out there facing a similar valuation conundrum? What does your accountant tell you?