Selling an existing Business.

danielelas

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Hey everyone, I am thinking about selling my business which over seven years has pretty much been a one man show. I net around 60k a year but the business can be expanded greatly, I just don't have the energy anymore. I Wanted to know on average how long someone buying a business should see a ROI? I ask this so I can get a ball park number on an asking price. Also if I can factor into my asking price that if sales are doubled, tripled and so on they can see a ROI even quicker. Any thoughts will be helpful. Thanks.
 

VirtualGlobalPhone

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danielelas , I feel the words you expressed shows that you don't want to actually sell. Is my prediction true?

The reason I am saying this is because if the intent is to sell you would have simply put the business, product/service with the expected selling price.

BTW explore more options of involving others directly as partner or director and share the responsibilities. So u can build it up to 1000 times in terms of earning , than it's easy to sell. Just a thought...
 

danielelas

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Well there is some truth in that only because it is scary to sell something you've been working on for so long and then wonder what you're going to do after that. Still I want to know these things in case I do sell and possibly try something else.
 

VirtualGlobalPhone

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danielelas , interesting business. Which has usually limited memory of buying experience in the customer mind.. Usually deals like this is best to sell your own competitor who joins fresh in amazon with lots of zeal and passion.

Business like this is valued from past sales and the strategy worked and protection of the same. You may not be able to justify the listener for an unknown future which changes like a speed of light in these platforms.

Best wishes.
 

SkyWriting

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Hey everyone, I am thinking about selling my business which over seven years has pretty much been a one man show. I net around 60k a year but the business can be expanded greatly, I just don't have the energy anymore. I Wanted to know on average how long someone buying a business should see a ROI? I ask this so I can get a ball park number on an asking price. Also if I can factor into my asking price that if sales are doubled, tripled and so on they can see a ROI even quicker. Any thoughts will be helpful. Thanks.
Or you could get advice on doubling your current income with less work.
Have you considered finding a mentor to help you do that?
 

Omphalos

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Jun 13, 2020
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An interesting question with many complexities. I understand selling your business is not an easy decision and it is much more than numbers.

The price of your business depends on numerous factors, most formally, historic performance, projections, and what industry you’re in. That being said, “value is whatever someone is willing to pay.” Your return on your investment will greatly vary depending on the aforementioned questions and how well you are able to reach potential buyers.

In regards to your second question, I would recommend building out financial projections that depict how you envision your business growing and creating marketing material that justifies your financial projections. This will support you in the end-to-end selling process. If you are unsure if you want to sell, this is still a great exercise because it will provide insights into your company’s value drivers. Gathering a better understanding of value drivers will allow you to make more informed strategic decisions to position yourself for the future thus recognizing the growth you referenced.
 

danielelas

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Joined
Sep 3, 2019
Messages
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An interesting question with many complexities. I understand selling your business is not an easy decision and it is much more than numbers.

The price of your business depends on numerous factors, most formally, historic performance, projections, and what industry you’re in. That being said, “value is whatever someone is willing to pay.” Your return on your investment will greatly vary depending on the aforementioned questions and how well you are able to reach potential buyers.

In regards to your second question, I would recommend building out financial projections that depict how you envision your business growing and creating marketing material that justifies your financial projections. This will support you in the end-to-end selling process. If you are unsure if you want to sell, this is still a great exercise because it will provide insights into your company’s value drivers. Gathering a better understanding of value drivers will allow you to make more informed strategic decisions to position yourself for the future thus recognizing the growth you referenced.
Thank you very much, very informative and hopefully one day I can actually find another business before selling at a price that's actually worth it and moving on
 

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