Lost and confused

[sm1]

Hi all,

Unfortunately that is how I am feeling slightly at the moment.

Reason being:

I am trying to bring my sim free mobile phone business to an end. A potential deal has fallen through, which is really unfortunate.

I am trying to work out if it is worth anything. My accountant tells me not really, as I told her the reason for going is due to the competitiveness and not being able to sell.

We currently stock sim free mobile phones, but with some work, it could sell affiliate contracts, B2B, PPC for exact sim free phrases.

It has turned over £20,000 to £25,000 in its first year. Obviously that doesn't mean alot. Profit is fairly low due to the market but I don't want to disclose that openly.

If it helps our site is here: www.tinyurl.com/2k6me3

I am not sure if I should just try and sell the website on its own (as in the files) so it can be either used as a phone store or change the products for another type of business.

Or

To sell it as a whole business - but is it worth anything?

Any help would be appreciated :redface:

Cheers

 

[DuaneJackson]

To sell it as a whole business - but is it worth anything?

Only if anyone wants to buy it, which I doubt.

 

[Green-Sheep]

Hi Stefan,

Is the company limited?

Is it VAT registered?

Regards

Jamie
Green Sheep

 

[serendipitybusiness]

If they have only turned over £25,000 they won't be VAT registered.

How many unique visitors are you getting to your site every day?
What is your conversion rate?

If the above figures are good then you could sell the website in its own right.

Of course your business is only worth what someone will so just bite the bullet and market your business for the price you want, if you don't get a response lower it and see how you go. You have nothing to loose.

 

[sm1]

Cheers all

Jamie - it is VAT registered, voluntarily - so we can deal with the suppliers we needed to.

Serendipity - Both figures are very low. That is due to my lack of marketing really. It does have potential (and no I don't wish to pursue that!)

Thanks for the advice.

 

[MikeD08]

if you are ceasing to trade and have stock available, I woul dbe interested in making an offer for it.

 

[sm1]

Thanks Mike - however we only purchase on demand. Sorry

 

[Green-Sheep]

Cheers all

Jamie - it is VAT registered, voluntarily - so we can deal with the suppliers we needed to.

Serendipity - Both figures are very low. That is due to my lack of marketing really. It does have potential (and no I don't wish to pursue that!)

Thanks for the advice.

Yea I thought you would have been registered to be able to find suppliers, is it a limited company?

Cheers

Jamie

 

[sm1]

Sorry I didn't clarify - yes it is

 

[Green-Sheep]

If the company has the VAT registration as a 'telecommunications supplier' or distributer is a limited company and has a UK bank account it has a value.

The reason for this is due to a high amount of VAT fraud in the mobile phone industry HMRC are very slow to issue a VAT number for mobile phone companies. In most cases it can take 6-12 months.

As you know allready its hard to get suppliers if you have no VAT number. Of course you can set up a company and use alternative classification. However for anyone who wishes to import or export mobiles needs to have the 'telecommunication' classification.

Whilst your business may have liitle value in terms of its trading history, it has a value in terms being a ready made shelf company ready to trade in the import or export of mobiles or be a dealer for the networks.

My advice would be find a site that you can list the business for sale, im sure the guys on here will know of one, state your companies VAT classification, has it made regular VAT repayments or reclaims etc etc.#

I know of companies similar to yours with no trading history which have been sold for between 2k to 5k just for the reasons I have mentioned.

Hope this helps

Regards

Jamie
Green Sheep Communications

 

[sm1]

Thanks for the info Jamie - Yes my understanding was that, however I believe that when the business changes owner, the new owners have to re-apply

We were one of the companies that went through the 12 month process.

We are classed as a retailer of telecommunications.

Cheers for your help

 

[sm1]

Hi Jamie,

Just to say this is from HMRC:

Important : You must complete this form if you want to keep the registration number of the previous owner. You must also complete form VAT 1. Once the transfer of the number has been allowed, it cannot be revoked.

By completing VAT form 1 that is a new reg.

Cheers