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Forum -> Working Women
Selling a business
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amother
OP


 

Post Sat, May 20 2023, 10:40 pm
How would one go about selling a very successful business thats only successful due to the owners talent? Is that even possible?

Also, how does one figure out a price to sell a business for?

Curious if anyone has any experience with this.
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amother
Slategray


 

Post Sat, May 20 2023, 10:43 pm
No, you can't sell that kind of business. You would need to first figure out how to unlink the business from the owner. Otherwise it will be worthless to the new owners.
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amother
Papayawhip


 

Post Sat, May 20 2023, 10:43 pm
It's hard. Someone I know bought a business like that and it's going horribly. On retrospect they shouldn't have bought it. (even though they are in a similar business and had the capacity for it)
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amother
OP


 

Post Sat, May 20 2023, 10:46 pm
That's what I thought. I was wondering if these a way to sell it to a competitor and possibly stay on as an employee for another couple of years. I'm not sure it makes too much sense though
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RM3




 
 
    
 

Post Sat, May 20 2023, 10:49 pm
There is someone in Lakewood that does Business Brokerage. They can help you with evaluating the best price you’d be able to sell it for. Your challenge is going to be as others have said, figuring out how to separate the business from being fully dependent on one person.
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amother
Lemon


 

Post Sat, May 20 2023, 11:05 pm
I would love to buy a business. Do you mind posting a general information about the type of business? I get not posting too specific. But I'm curious if it would be a good fit.
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mikayla18




 
 
    
 

Post Sat, May 20 2023, 11:10 pm
Many people who buy businesses have the owner stay on as an employee. Very common
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amother
OP


 

Post Sat, May 20 2023, 11:11 pm
amother Lemon wrote:
I would love to buy a business. Do you mind posting a general information about the type of business? I get not posting too specific. But I'm curious if it would be a good fit.


Its a design business (one of these: interior, fashion, graphic, motion, web) don't want to get too specific as to not out myself here
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amother
Steelblue


 

Post Sat, May 20 2023, 11:17 pm
Can’t answer your first question but price is usually 3-4 times the amount of profit you generate
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amother
Daylily


 

Post Sat, May 20 2023, 11:19 pm
amother OP wrote:
Its a design business (one of these: interior, fashion, graphic, motion, web) don't want to get too specific as to not out myself here


Is it only the owner doing the design or are there other employees?
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amother
OP


 

Post Sat, May 20 2023, 11:23 pm
amother Daylily wrote:
Is it only the owner doing the design or are there other employees?

There are others but the owner is the lead designer who has the final say on all of the designs and also solely designs most of the larger projects
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amother
Clover


 

Post Sat, May 20 2023, 11:28 pm
Are there steady clients? Are you selling a business with a clientele?
What is it that you are selling? the brand?

This type of business is often not really a business. At most it is an agency. To make it worth buying there has to be something you are selling.

Think about it from the buyers perspective. Why would they buy this instead of going out on their own?
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amother
OP


 

Post Sat, May 20 2023, 11:34 pm
amother Clover wrote:
Are there steady clients? Are you selling a business with a clientele?
What is it that you are selling? the brand?

This type of business is often not really a business. At most it is an agency. To make it worth buying there has to be something you are selling.

Think about it from the buyers perspective. Why would they buy this instead of going out on their own?


It would be selling the brand (with the clientele). This specific business is considered top in their industry.
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amother
Bottlebrush


 

Post Sat, May 20 2023, 11:46 pm
amother OP wrote:
It would be selling the brand (with the clientele). This specific business is considered top in their industry.


Is the brand anything without you?

If you were to stay on as employee - doing exactly what you were doing before, why would you want to do it for less money?
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amother
OP


 

Post Sat, May 20 2023, 11:51 pm
amother Bottlebrush wrote:
Is the brand anything without you?

If you were to stay on as employee - doing exactly what you were doing before, why would you want to do it for less money?


Yes and no.

Why I would do it for less money?
1. Its less of a headache. Running a business is super stressful
2. If I can sell it for the amount I want, I would invest all that money into something else that really interests me and has a greater return down the line, and after a few years I would leave the industry completely

I'm just dreaming. I don't think my plan or selling this business is practical at all. But I figured I'd ask
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amother
Bottlebrush


 

Post Sat, May 20 2023, 11:55 pm
amother OP wrote:
Yes and no.

Why I would do it for less money?
1. Its less of a headache. Running a business is super stressful
2. If I can sell it for the amount I want, I would invest all that money into something else that really interests me and has a greater return down the line, and after a few years I would leave the industry completely

I'm just dreaming. I don't think my plan or selling this business is practical at all. But I figured I'd ask


the person buying it would really need to figure out what their return on the investment is. How much revenue they would be generating after paying you. You would also expect to sign an agreement to continue to work for x number of years.

would make more sense to hire some to help you run the business.
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amother
OP


 

Post Sat, May 20 2023, 11:58 pm
amother Bottlebrush wrote:
the person buying it would really need to figure out what their return on the investment is. How much revenue they would be generating after paying you. You would also expect to sign an agreement to continue to work for x number of years.

would make more sense to hire some to help you run the business.


But I would've liked that big chunk of money to invest elsewhere now. I also don't think hiring someone to help me run it will get rid of the stress.

Anyway, it was a sweet thought. I don't see how it makes sense for me to sell it...
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amother
Bottlebrush


 

Post Sun, May 21 2023, 12:03 am
amother OP wrote:
But I would've liked that big chunk of money to invest elsewhere now. I also don't think hiring someone to help me run it will get rid of the stress.

Anyway, it was a sweet thought. I don't see how it makes sense for me to sell it...


I don't see how it would make sense for anyone to give you a chunk of money for it if you weren't around for a bunch of years to do the work (and of course expect to be paid decently).
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Rubber Ducky




 
 
    
 

Post Sun, May 21 2023, 12:19 am
Might be better — if one of your employees has the talent and capacity — for that person to slowly take it over and buy you out.
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amother
Glitter


 

Post Sun, May 21 2023, 1:22 am
Start building a team and phasing out your own role so it can be run without you. Like what does "has final say" mean? You need to replace yourself and become CEO and then you can sell it.
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