Not sure what’s up with the answers you have received so far.
The correct answer is most likely the difference between cash flow and profit.
If you run a business that has inventory, it is possible to have a profit, but negative cash flow.
This occurs when you inventory levels at the end of the period are higher than at the beginning of the period - in which case the profit has been spent on higher inventory levels.
Not to be a spoil sport, but discussions like these always befuddle me.
If it is a business expense, it is deductible. If it is not a business expense it is not. That is just how income, expenses, and taxes work.
There is no magic, no loop holes, no surprises. Most likely if you think there is magic, loop holes, and surprises, you are doing something fraudulent.
The fee schedule can be found in the Amazon Seller site without being logged in. Go digging.
If you are trying to figure out going rates, just reference PPC costs and display advertising costs (CPM.)
Agreed.
And I have experienced it both as one without distribution and with it selling eight figures of physical products per year.
An inferior product will win if they have distribution and you don’t.
Multi eight figures. Quickbooks.
This is the second post asking the same thing and my response is the same - what is it you aren’t getting from Quickbooks that makes you wonder if it is enough?
If the recent profitability is expected to be sustainable, I would argue a multiple based on 1 year sales would be best. Question is what multiple.
Often for a company that is growing (or has just flipped from loss to profit), the multiple is based on the next 3-5 years EBITDA not the last 3 years EBITDA.
The reason is that any price calculation is ultimately a way of calculating a lump sum in exchange for future cash flows.
This is why even unprofitable companies (with expectations of future profit) have a value greater than zero.
Then the question of what multiple is appropriate depends on all the usual things like competition, expected growth, etc.