I can’t stress the importance of what I’m about to tell you enough. If you look at entrepreneurs who have made fortunes – I mean SERIOUS wealth – in almost every case the money came not from inside the business, but from SELLING the business.
You’ve heard numerous news stories of internet companies selling just 1-3 years after their initial start-up. And the businesses you hear about sell for 7, 8 and even 9 figures.
If this sounds out of reach right now, picture this scenario: You start a business today, and in 6 months to 2 years you sell it for 6 figures. Would that make a great payday for you?
Now you might be thinking that selling your business is something you don’t need to worry about until long after you start it. Not so.
If you are starting a business right now, you should also be considering your exit strategy. After all, you could get bored with what you’re doing and want out. Or maybe you need quick cash. Or you decide to go in an entirely different direction. So you decide to sell your business.
If you’ve laid the groundwork, you should be able to sell quite quickly and for a very good price.
Here’s what you need to know:
– Don’t think of it as flipping a website. Think of it as selling a BUSINESS. That’s because buyers don’t want a website. They can build their own website cheap enough.
What they do want is a ready to go, money-generating cash-cow business, so make your plans accordingly.
– Make your business transferable from Day 1. Every product should be its own entity – after all, a single product can actually be an entire business.
Give it a website of its own, its own list, its own customer base, its own affiliate program and affiliate list, etc.
– Don’t brand it exclusively with your name. It’s fine to attach your name to your XYZ product, but don’t call it “yournameproduct.”
In other words, “Bob Smith’s Traffic Gorilla Mania Course” is fine. “Bob Smith’s traffic course” is not. In the first case, the product is Traffic Gorilla Mania, a name that anyone can sell. In the second case, the product is Bob Smith’s Traffic, a product forever branded as belonging to Bob Smith.
Imagine you’re Bob Smith, and you sell your traffic course business to someone else. That person then sells the course. Who do people ask for help? You. After all, your name is on the course.
Then let’s say the buyer alters the course and now it stinks. Who will people blame? You. Now you see why your name needs to be completely separate from the product name.
Yes, it’s a bit strange to think about your exit strategy when you’re just starting a business. But when it comes time to sell, you’ll be glad you did.
One more thing – what if you have a partner?
Write into your agreement what will happen if you sell. Just look at the possibilities and agree on how it will play out if one of you wants to sell to the other, or if you both want to sell to a third party.
You can make a good amount of money by making each of your businesses as stand-alone as possible, and then selling them when the time is right. In fact, selling your business can potentially earn you more than you made running the business.
So plan ahead, and make sure you are building your business-selling exit strategy directly into your business itself!