Here’s what I want to know: how do you build something based entirely on what you love to do / do best, and then put a number on it and sell?
To my people: nobody’s selling ep or anything else. I’m just conjecturing. Mandatory disclaimer aside, the question intrigues me for a few reasons.
First I don’t know how you could ever properly value a service company (or blog, for that matter.) A lot of effort goes into molding an environment that you want to be inside. If you get it right, you end up with a kick-ass place to spend your time, the perfect job. I’m not sure quality of life can be transferred, so, in the case of an acquisition, you’re only selling part of what you’ve built.
The same can be said of non-service companies. It’s easy to get attached to ventures, whether you start up intending to sell or or not. I don’t do built to flip well.
I see serial entrepreneurs pushing non-service ideas towards big valuations, selling, rinsing, and repeating. It looks like fun. But I look at an idea and immediately try to figure out how to monetize it, how to turn it into a viable business.
Ironically, I think the monetizing process actually discourages acquisition. Dialing in a business model can extend long after you get the (non-service) service right, making it more difficult to disengage. And if the idea is something you’re passionate about, you’re doing more than just growing revenue.
In either case — service or non-service — I find it difficult to imagine selling something that I care about enough to consider incomplete. As it happens, everything we build rolls in that manner.
Maybe it’s time to experiment with something we don’t care about. I wonder how that would turn out.
4 Responses to “Selling your way of life”
For myself, I am always open to selling for the right price…and I would even make it a reasonable metric. There are so many things I love to do, that if I sold for enough value to sustain a great transition, I would jump. I think it is the person though. Interesting enough, the SEO, SEM, affiliate space is seeing its first few consolidations happening on a micro ($1 million) range. I would not sell for that, but I do know some bigger companies are acquiring companies with solid clients, ad campaigns and sites with decent traffic sources. With other digits, I am out.
Oh yeah, and Google, if you want to click, click over here…your cash is good.
It’s tough to say we wouldn’t sell an op or two given the ‘right price.’ But those that would be worth the most are the ones we’d be least likely to sell based on personal attachment. You can always rebuild a revenue stream. I think building the right work environment / culture is a lot more difficult. I won’t be ready to retire for a long time, and I can’t imagine not enjoying what I do - I bore too easily.
Knowing the small bit I do about your gig, I think you could get back in quicker than I could.
Aaron, I in the process of starting a web design company in the Washington DC area and I wanted to know if you would be open to answering some questions and giving some guidance. I couldn’t find your email on the blog…Let me know. Thanks!
Hey Brian. I just emailed you. It’s probably time to get an about page on this blog with contact info.