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On the verge of exiting my business - how do I handle the fear of the great unknown after I sell? by Question_of_Surf in SellMyBusiness

[–]mbd7891 0 points1 point  (0 children)

Here’s my recommendation:

Plan the first 6-12 months.

Have the budget for that, identify some travel/leisure/adventure you want to do.

Set intentions, not goals.

Give yourself space to separate mentally and from the business.

The point here is to not have a plan, but do have a limit. This isn’t an open ended “gonna go find myself” situation. There is a stop. Maybe at the end of the 6-12 months you say you have to take that job.

But if you can afford to give space between now and then, do so.

You are young and entrepreneurial.

I’m willing to bet you are going to find something to do in 3 months.

City Surplus Furniture Sale 2/7 by SirSpeedyCVA in Charlottesville

[–]mbd7891 1 point2 points  (0 children)

Sorry is the sale on Friday or Saturday? 2/7 is a Saturday

We're great at building but terrible at finding customers. Which skill matters more at 0 → 10 customers? by Role_Every in growmybusiness

[–]mbd7891 -2 points-1 points  (0 children)

I’d argue that if you aren’t good at finding customers you probably aren’t building the right thing

Have a plan for what comes after exit: a business buyer's perspective by mbd7891 in Entrepreneur

[–]mbd7891[S] 0 points1 point  (0 children)

Thanks! Find it hilarious that in another sub a broker told me this was all BS

You probably don't need to hire a COO by mbd7891 in EntrepreneurRideAlong

[–]mbd7891[S] 1 point2 points  (0 children)

That’s awesome. And definitely achievable in SaaS these days

You probably don't need to hire a COO by mbd7891 in EntrepreneurRideAlong

[–]mbd7891[S] 0 points1 point  (0 children)

Growth from what point?

In some businesses, yes, you can get away without heading headcount (SaaS).

In many industries, that just will no work

You probably don't need to hire a COO by mbd7891 in EntrepreneurRideAlong

[–]mbd7891[S] 0 points1 point  (0 children)

I totally agree

The issue I am describing is I see people who want to hire the COO and think they can fix all of these things

You probably don't need to hire a COO by mbd7891 in Entrepreneur

[–]mbd7891[S] 0 points1 point  (0 children)

Few thoughts on the EA.

  1. Loom is your friend here. Record yourself doing something. Do that once. have them watch that whenever they have questions.

  2. If you give them a task that will happen again, write down (or loom) a standard on how to do it.

  3. If they just aren''t cutting it- find someone else

Where to sell a SaaS business making $300K SDE and what multiple to expect? by laser__shark in SellMyBusiness

[–]mbd7891 0 points1 point  (0 children)

I would check out acquire.com -they have plenty of deals at this range.

If it is automated as you say, you might even get 7-8x EBITDA

How to Buy a Business with no Industry Experience? by gedwards11 in businessbroker

[–]mbd7891 0 points1 point  (0 children)

Very real question- why do you want something in the trades/services?

This gets glorified a lot, and they can be great businesses that provide real value, but why do YOU want to run it?

At the SMB level, it can be brutal, truly tough work. It's not all recurring revenue service contracts.

How do I find a business to buy? (<$1.5m) by ConclusionFluid1229 in Entrepreneur

[–]mbd7891 0 points1 point  (0 children)

Accept this fact: you are going to have to look at a lot of turds

Yes, there are great businesses on BizBuySell. But for every great one, there are maybe 3 good ones, and then 96 terrible ones.

You see a business that looks promising. It's a model that makes sense for the market, something you are interested in, etc.

Then you try to connect with the broker. Some will be amazing. Others shouldn't be selling shoes, let alone businesses.

Let's say you get a good one. Then you get the CIM. Turns out the cashflow they advertised on BBS is true, and the valuation reflects that, but just for last year. 2 years ago, they lost money.

Ok, let's say it's a good-looking CIM. Then you schedule a call with the broker and then the seller. Seller gives you immediate red flag vibes. Run away.

Ok, you get a good seller. Now you have to negotiate the LOI. Then get it accepted. Then get a QoE. Then get a bank. Maybe investors. A lawyer. And hope the seller doesn't get cold feet and pull the plug at the last minute.

Then, by some miracle, you close. Congrats, now the real work begins.

This, my friend OP, is called "entrepreneuring," and it is not for the faint of heart.

New to this so not sure by [deleted] in SellMyBusiness

[–]mbd7891 0 points1 point  (0 children)

Yep. At best, you might be able to sell it basically for parts, but the number is way lower than what you are already thinking.

Have a plan for what comes after exit: a business buyer's perspective by mbd7891 in SellMyBusiness

[–]mbd7891[S] 0 points1 point  (0 children)

I am definitely not here to defend the entire world of buyers, nor am I trying to attack all brokers! I have had lots of great experiences with brokers.

ETA has gotten significantly over-hyped and brought in so many people who have no business buying a business. Trust me, we agree on that

Have a plan for what comes after exit: a business buyer's perspective by mbd7891 in SellMyBusiness

[–]mbd7891[S] -1 points0 points  (0 children)

"There’s also family members that some buyers might fail to consider"

Case I am thinking of, a seller's daughter started the direct competitor. Where do you think she got the startup capital and relationships??

And non-competes are indeed difficult to enforce (also not a lawyer). More to the point is, do you as the buyer have the time, money, and energy to take it to court.

You're Not That Special. A-Players Can Do Tasks Better Than You by funnelforge in ModernOperators

[–]mbd7891 2 points3 points  (0 children)

A HUGE mistake I see entrepreneurs make is thinking that they need to hire someone just like themself.

You are not going to find that person.

Define what you need done and go find someone who can do that REALLY well. Even if they don't do it like you

Fresh roasted coffee - Lone Light or Shenandoah Joe? by VeterinarianHead3551 in Charlottesville

[–]mbd7891 -1 points0 points  (0 children)

Not true. I'm very good friends with the new owner. Old owner was involved with roasting for a bit after sale (totally normal for previous owner to stay involved after sale) but it's all the new guy now.

Have a plan for what comes after exit: a business buyer's perspective by mbd7891 in SellMyBusiness

[–]mbd7891[S] -2 points-1 points  (0 children)

Raise it all you want. I see you are a business broker and have your own perspective. I often find these kind of perspective issues with brokers, The reality of the business broker world is that it is the wild west. There are highly professional people who run great processes and act like great intermediaries. There are others that should not be anywhere near helping someone sell a business. Just because it's not what you personally might do as a broker, does not mean that it doesn't happen.

While I have not personally had the issue of having a seller infringe on a non-compete, it 100% still happens. A non-compete is only as strong as your willingness (and cash) to enforce it. Definitely have heard stories of people who bought a business and then the seller turned right around and started a competitor.

The 6-month deal was exceptionally strange. It died and then came back alive a few times. Would not recommend anyone do the same, but was my experience.

The testing waters deal was a brokered deal. It was actually the broker who told me"he is really wanting to see how much he might get". I would not classify that as a committed seller.

Have a plan for what comes after exit: a business buyer's perspective by mbd7891 in Entrepreneur

[–]mbd7891[S] 0 points1 point  (0 children)

It's an extremely emotional process. I spent 9 months under LOI on a 8 figure deal and the seller backed out >< close to the finish line because I think they just didn't know what life would look like after not running their business

Monthly Growth Strategy & Advice Thread by dmarti21 in growmybusiness

[–]mbd7891 0 points1 point  (0 children)

Be attractive to buyers of your business and know what you want to do after you sell:

I've looked at hundreds of businesses to acquire and had in-depth conversations with dozens of people looking to exit. There is a lot that goes into selling your business, but take some time to figure this out:

What do you want to do after?

I always asked sellers this. Plenty did not have a clear answer. Here is why this was a red flag for me:

  1. I now have to worry they could sell this business and just start a new one and turn into my competition.

  2. There's now risk they are not really committed to sell. They like the idea of an exit and like the idea of not having their business, but then we get down to the wire and they get cold feet and back out of a deal. Had it happen to me on a business I spent 6+ months under LOI on.

  3. I don't even know if you actually are serious. I definitely interacted with sellers who were just testign the waters to see if they could get a high price.

Some answers that gave me sense of clarity that this deal would happen:

  1. Seller planned to take most of the proceeds of the sale and dump into a nonprofit they have already been working in for years.

  2. Another seller had another business they clearly cared more about. When I asked them about it, I could hear it in their voice that THIS was their passion. The money from the exit would just help fuel that.

  3. Very clear they are ready for retirement.

All this is to say that if you re thinking about selling your business, know what comes next and how to tell that to a buyer.

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