I started a service business 6 years ago in Washington, and I have the opportunity to buy a similar business in Colorado that does much better revenue than mine currently does.
Should I sell mine outright and go all in on the other one or should I consider “selling” mine as a franchise and continue to own it alongside the other one? The Brand names will be different, and the operation in Washington is more of an owner/operator concern at the moment, though there is some potential for expansion.
depending on the kind of business, you could hire an employee or manager for the Washington business.
You might as well ask a magic 8 ball.
If you have a successful business you obviously know better than taking advice from a random online community over a matter so important while simultaneously giving so little context.
It sounds like you are just to afraid to make a decision and want strangers to make it for you under whatever criteria rather than going deeper into analysis.
It’s highly dependent on your situation but it’s hard across state lines especially non-neighboring states where can’t be close to them. Plan on spending a lot more on site specific management than you anticipate. It’s very hard to replace “yourself” and in my experience takes two people usually.
Franchise is a loaded word…backed by tons of legal stuff…so don’t even mention franchising until you’re ready. Take a key person in the East, make’m VP and get ur ass out West and fire it up. Stay in control of it all. If business model is multi+state proven…more value to you.
If the business in Colorado does much better than yours does in WA, I would sell the existing business and go all in on the other one.
Running two businesses in different states will take its toll on you, if you’re not prepared for what’s involved. But make sure you will be better off with the CO business.
Theres a few ways you can looks at this. Depending on the business, first look for synergies between the two. If they are truly similar, a merger and rebranding to the more well know entity may be best and grow from there. Depending on your clients, you could target target those who move between the states. If its more of a local/mom&pop brand than it may be best to keep branding separate. You state that the one requires more focus, are you able to hire someone to run it for you? If not then franchising or becoming a silent partner (which allows you alot more time) seems the way to go. If the CO business has greater potential growth and a stronger brand and you believe the other will hinder your focus then get rid/franchise/sell equity to partially fund you acquisition. Always ask questions about why this business is being sold as well, is it at a point where growth has plateaued? And what are you going to change/bring to it? Managing a few states across is difficult without an open information path.