My London business has a good turnover but low profits

Low profit is normal for some sectors. But if you're only making 4%, buyers might see it as a job rather than a business. What's your EBITDA after adding back your salary and any one-off costs? That's what matters.

I sold a catering business last year with similar numbers. The key was getting the margin up to 8% by cutting waste and renegotiating supplier contracts. Took 9 months but raised the sale price significantly. It's a grind though.

Have you considered that some buyers actually prefer a low-profit business they can improve? There's a market for 'fixer-upper' businesses, especially if the turnover is solid and there's a clear path to better margins.

What's causing the low profit? If it's rent or staff costs in London, that's tough to fix. But if it's inefficient operations, that's more attractive to a buyer. Either way, you need to show a story.

Get a proper valuation first. Many owners overestimate what their business is worth, especially in sectors with low margins. A broker will tell you what you're really looking at. Then decide if it's worth selling now or waiting.

Also, if you sell too soon after improving margins, buyers might be suspicious. You need at least two years of consistent profit to get the best multiple.

I'm in a similar boat. My accountant says to focus on turnover growth first—buyers will pay for a business with a strong top line even if margins are thin, because they can scale it. But I'm not convinced.

Turnover growth without profit is just vanity. You need to show you can make mo ney. Even a small increase in profit margin makes a huge difference to valuation.