How to determine the value of my small business?

I have a small home based business with an income of about 10k average income per month and low overhead. Profit runs 7-8k, sometimes less and more frequently more. It can be run by a single person wiling to work from home 9-10 hrs per day, 6 days a week, and requires basic computer skills, internet research skills, and good customer service skills. No degrees needed to run it, no experience in my field either.

Part of what I am selling is the process developed over decades of work, as well as an extensive data base of customers and clients. I am also "selling" my reputation in my community which is stellar.

My husband and I are thinking about retiring early and selling the business. I have someone interested in it, but I have no idea how to evaluate the business and put a price on it. Should I use the income to determine it? Do I add value based on my reputation?

I am in an extremely small niche market, without other businesses like mine for sale that I can find, so comparisons are not possible.

Any ideas of how to figure this out would be appreciated. As a self-made person who created and built the business, it's hard to put a price on my baby.

~DDD

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