RESEARCH: The average UK small business is worth £90,000

Using data from nearly 7,500 small business valuations performed over the last three years, Bizdaq charted the average value of small businesses across the UK to find out how much return owners could expect on their investment if they sold their business.

They found that although small businesses are worth more than they were in 2015 (£89,000), values have dropped compared to last year. As values are directly linked to turnover and net profit, this signals that falling levels of consumer spending, and/or increasing costs, are adversely affecting the values of small businesses across the country – leaving owners unable to reach the true value of their business.

Whilst small business values in the North have remained almost the same, dropping from an average value of £80,000 to £79,000, values in the South have fallen from £97,000 to £91,000 between 2016 and 2017. Whilst this fall may be larger than that seen in the North, values are still considerably higher.

The research also extended to business types, with Bizdaq finding that the average value of a typical British cafe had dropped in value by 15% to £45,000 in 2017, whilst coffee shops had risen in value – from £62,000 to £65,000.