My employee Brady's dad has experience in franchises and he says that those go for 1x-2x their yearly profit. Yes, I generate perhaps 10% of my sales outside of Amazon, and I do refer significant traffic to Amazon with my own website. It's to be expected, in fact.įor me, I think I'm ready to sell because Amazon is still a single point of failure. The advantages and disadvantages of selling a business will differ from one small business owner to another. This can differ from one business owner to another. These are the points that I'm thinking about most. I've become a bit bored with the business, other ventures are more excitingĪnother owner could likely grow the business with a fresh set of strategiesĪs you can see above, I've bolded the pros and cons that I'm placing the most emphasis on. I could hire people with the right skillset to grow the business My skillset is better geared towards digital products vs. The cash flow is enough to hire more employees that could work in the business to grow it or work outside the business to grow my other ventures I'm leaving a lot of cash on the table if I can grow the business over the next year Will I have enough monthly revenue to cover my existing employees if I sell?įree up mind power to focus on other existing business ventures I could use the money to buy another business that I feel like I could grow more easily $15,000 a month is a significant revenue stream to give up. That money could be used to invest in real estate or some other passive investment I don't really need the money (thanks to my previous exit). I know this may be a little different, but I am going to make a Pros and Cons table and walk through my individual decision-making process for whether I should sell my Home Goods Brand business or keep it for a few more years. When it comes down to it, there are TONS of factors for many business owners to consider and every business is unique and everyone's personal situation is unique. Other Pros and Cons to Selling Your Business to Consider

I have minimal experience running my own paid traffic campaigns, but I could always hire someone. I have experience with SEO and creating new products, so these are both levels within my skillset that I could leverage. Optimize listings and conversions better on Amazon.Increase my link building and SEO efforts to make more sales on my own platform ( outside of Amazon).With my business, I potentially could do the following to grow the business: In a nutshell, you have to consider whether or not you are leaving growth on the table with the business sale and is the effort to achieve that growth within your skillset. If not, perhaps you should focus on growth rather than selling your business. There are lots of levers you can pull to try and grow a business. So, if I don't spend any time working in the business and it's profitable, why would I consider selling it? I started the business about 2 and a half years ago. As mentioned, it has netted me an average of $15,000 per month for the past 12 months. The business I am looking to sell in the very near future is quite profitable. But why would anyone sell a profitable business? Why Would Anyone Sell a Profitable Business? Selling and staying each have their own benefits. Your consideration will have to be unique to you and your desires. This isn't to say that selling or staying is best for you. Lose income (and as a result, have a lower sale price).

Run the risk of the industry changing while you aren't paying attention.

Force you to invest your time or manage your employees.

Continue with regular profit (or losses?).

Get a lot of money in a short period of time.

This question is impossible for anyone to answer except for you.

In the process, I'll share some of my thought processes and hopefully help you think through your decision if you are considering selling a business as well. So, today I'd like to walk through some of the pros and cons of selling a business. UPDATE: Considering that I sold this Amazon FBA + niche site business for $425,000, I'm not too upset. Even though I've been through the process before, I still find myself struggling with the decision.

Sell my business