It seemed to good to be true…
In September of 2018, I was in escrow to sell the business I had been building for 5 years and buy another one. This opportunity came out of nowhere and felt like an answer to my prayers. I thought it would give me a chance to level up, have more freedom and growth potential. There were a few problems with the deal. The first problem was that I needed a buyer. Selling a business isn’t like selling a car or a home. The market for buyers is much smaller and the risk for them is much greater. There was also an issue with the business I was buying. My accountant went over the company’s books with me and it didn’t exactly add up.
The thought of selling my business was heartbreaking
The other problem was that I was passionate about my business. I had spent 5 years building relationships, creating a team, becoming part of a community. The thought of selling was heartbreaking. I had been pursuing this option for several months, none of my clients knew and I only told one of my trainers because he was the only one I thought would be able to buy it. One night I remember, in particular, I was at the studio, it was packed. I was happy about what I had built, but torn apart by the idea of selling it. I felt awful.
‘If you have an exit strategy, it’s not an obsession’
Mark Cuban has famously said, ‘Don’t start a company unless it’s an obsession and something you love. If you have an exit strategy, it’s not an obsession.’ He makes a great point. It can take a lot of time and effort to build a business. If don’t love it, you won’t be excited to do the work to make it successful. Why would you commit so much time and effort to building something if you aren’t obsessed with it? If you love it and it’s successful, why would you sell it?
What is valuable about your business?
When your are building your business, it’s important to think about what assets you want to build. What is it that actually makes your business valuable? Some businesses might be valuable for assets such as real estate, capitol equipment or a proprietary formula. Many businesses have value in their Brand, their customer lists or the digital real estate they have created. Your business may be incredibly valuable to you, but in order for it to be valuable to someone else, you have to be able to remove yourself from the business without decreasing the businesses value or income stream. You can do it, it just takes some planning and strategy.
‘Always have an exit strategy’
You have probably heard the advice, ‘always have an exit strategy’. It’s a good idea to have a plan for how and when you will move on from your business, even if you choose to keep it. The problem is that if you are too focused on how to get out, will you be able to build it to the point that someone else will want to buy it? If you don’t want it, why would someone else? The book, ‘Built to Sell’ by John Warrillow can help you put things in perspective to build your business in such a way that you will have the option to sell if you decide to. I highly recommend it.
How to get started in online business
If you are looking to learn about eCommerce and start your own online business, the best resource that I can recommend is the Entre Institute. The curriculum that Jeff Lerner has created is the best I have found. He has created a master mind of people who are creating awesome lives and building businesses online. You can learn more at the link below.
