Earlier today I posted in this sub about wanting to hold on to it for my kids, but the more I think about it, it seems like a lot of time to spend on something not knowing if your kids will even want it.
I run a one-man consulting business.
So I’m thinking, if the right person wants to learn this business, I can sell it to them and teach them what they need to know over like 6 months. Someone with abackground in finance, commercial lending, or workout/turnaround would be an ideal person to purchase it.
It’s actually a really great business because I only work about 10-15 hours per week, and I just ran the numbers and I’m at $177K revenue with virtually no expenses (it’s consulting) for 2023.
I don’t pay for advertising. I’ve got a few social media channels and my SEO is pretty good at the moment (that’s where the bulk of my business comes from). My social media is actually not all that polished, so anybody who wanted to put the pedal to the metal could probably grow revenues beyond the current levels.
According to chat GBT, businesses in this space are worth between 1.5 and 3 times revenue. Even if we split the difference and I sold for 2.25 times revenue, thats $398k. I’d take that. Something like 75% cash and the balance paid as an earn out.
I’m not going to speak publicly about specifically what I do because I’ll be too easy to identify, but if anyone has a serious interest feel free to shoot me a DM and tell me a little bit about your background.
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Did you try Flippa ?
I haven’t. I’ll check it out!
I think a 1 man consulting business would be a hard sell. You ARE the business and your consulting expertise is the reason your business creates the revenue it does. Personally, to make your business more attractive to buyers, it would benefit you to hire 1-3 employees. Teach them everything you know and increase revenue, this will prove to potential buyers that with the right training the business can grow without having your knowledge/expertise in place. Also, if your newly trained employees increase revenue X times and you get to decrease your time spent in the business, you might want to keep it longer and collect the profits.
Just a thought from an outside perspective.
I totally agree. It’s going to be hard to sell.
Would love to hire and train people, but I wouldn’t have any idea where to look or how to do it in such a way that it would work. I’ve managed people before and I’m pretty terrible at it.
Do you have a full time job outside of the consulting business? 10-15 hours a week to result in $175k+ a year in income is pretty darn good.
Since you don’t want to expand the business, I think your next biggest selling point would be your client/contact list. Another company doing something similar that you do might want that information, but I don’t think they would pay 2.25x simply for the list. They could, but it would be more of an acquisition rather than a buy, at least I would see it going that route.
Your are the business. Why not just hire some people to train. Build the systems (training material, processes,etc) needed while teaching. Then sell the system as a services franchise over and over again to your trainees?
Would you consider a lower price but residuals?
Would love to follow the path you did!
Would you be comfortable DMing me your site? So I could get some inspiration on how to break out from the corporate world on my own?
It’s consulting, it’s valuable for the knowledge you have. I don’t think someone with 6 months of training would be able to deliver.
Due to that reason I’m out.
Maybe as an experiment have one of your kids or relatives run it for 6 months, prove that it can run without you.