sundaridevi - 6:47 pm on Jul 26, 2012 (gmt 0)
With respect to development issues, I agree with what has been said above. You don't necessarily have to wait 2 years to start making money with a new site.
More importantly, a dollar today is worth more than a dollar tomorrow. So there are two very important issues to consider.
- If you did get $10k today for selling your site, could you put it to use and get a decent return on investment from it? In other words, if you have other opportunities to build something that you aren't doing because you don't have the money. Will they be making more money in two years time than you are making today?
- The other very important factor is the web is changing fast. There's a good chance that you won't be making the same in two years that you are making now. As the market shifts to mobile access will you benefit or suffer from that?
I've been through this issue a lot of times. My main site gets an offer to buy it about once every two years. I always think that this is my cash cow it grows every year without doing much and that finances everything else I want to work on. I also don't think that anybody will pay what it's worth to me if I project the revenue forward 5 years or so. So far I've been right, but in the last two years I've had to spend more and more on development and marketing just to stay even.
Now the story is grow or die. So if all sites eventually face that question, do you have the capacity to grow (either cash in the bank or the ability to do what it takes on your own)? If you can't answer that question with 100% confidence, then you should cutback your future revenue estimates accordingly.