Wann E-Com-Gründer verkaufen sollten

0:00Unternehmer/Gast First things first, everything. >> You bet, man. We are in the position where we have a couple offers on the table to exit. A couple of LOIs. Um it's life-changing money, but we believe that if we stuck around for 2 to 3 more years, it could be like extra life-changing money. So, how would you look at this decision and decide when's the right time to exit? >> One of the hardest decisions in business. It's a very personal question and it comes down and the nice thing is that you have you have all of the information to make the decision. So, on one hand, you have your personal goals, which is like this is the amount of money that I said I would be willing to part, you know, part ways with this. This is what I started, whatever.

0:40Um on the other hand, you also understand how reliable your business is. If you feel like the business has a good leadership team in place, you have plenty of room to expand in the market, the infrastructure is, you know, secure, the revenue that you keep you have high revenue Do you have What's your revenue retention annually? So, our revenue's about 6.1 this year and our EBITDA is around 2.3.

1:07What's revenue retention? What percentage of that revenue came from the year before? It's all first one-time sales. So, we don't have reoccurring or recurring, which is one of the things that if we added it would make the Yeah. So, you're in you're in like the devil's gambit right now. Um and so, like you're getting an offer uh which is great on something that could also be gone tomorrow with an ad account shutdown or whatever, right? I don't know how you get customers, but I'm just assuming.

1:35Is it ads? Yeah. Okay. And so, like they're So, it this is a purely risk This is a risk assessment. Is if you were like for sure we're going to be able to grow, then don't sell. If you're like, I don't know if we're going to be able if we're going to grow from here, then sell. And so, like only you can know that. And I'd say the second like question 1B, and this is a really big one that I think is underrated, is what are you going to do after?

2:05And so, I have friends who have exited and there's basically like two camps. There's exit and don't have a plan and exit and know exactly what you're going to do. And these guys, huge massive crisis of meaning. These guys, they just get right back to work. And um having looked at both of those, like the day after I sold Gym Launch, I started Acquisition and that like literally the next day. Um and I'm very happy that I did that. Um I think having a lot of time and a lot of money and nothing to do, bad combo for entrepreneurs.

2:39Personal personal opinion. So, if you are going to sell, have a very clear idea of what you're going to do next. Then Then No, that's I mean this is real. This is like a real-life decision. And so, um I don't know what the what the life-changing money that they're offering is. If someone's offering, you know, 10 times bottom line for something that has one-time transactions and it's all cash, like terms of the deal matter. It's all cash, you can walk away, then yeah, maybe not a bad deal. If it's, you know, seller financed, you can sell it back for, you know, a year or 2 years um and they're buying, you know, 51% um but you're expected to work for the next however many years, then you basically have a job either way, in which case you're going to like Okay, this is the frame you can think of. How will my daily behavior change?

3:28If what you do every day doesn't change, then why sell it? Which is why for me the terms of my sale were like, I will stop working the day I get this check. And if you can't do that, then I will not sign the deal. Yeah, ours is like we're we're out out >> [snorts] >> once we sign. Okay. Or there there's options, so Sure. It's like majority of the money up front, a little bit of seller financing, a little bit of an earnout. We're out.

3:55>> Well, yeah. So, I mean this is a purely personal decision. I won't take too much more time on it, but like it's a risk decision, which risk is purely personal. It's like do you want to put it all in Bitcoin? You could. It's just purely personal. Can you just tell us to sell it? >> [laughter] [laughter] >> You know, sometimes it's like you flip the coin and then you when it's in the air, you decide what you want to do. I think it's a terrible way to make decisions, but it works for some people.

4:26But no, I I deliberated about this. Actually, on my YouTube channel, I have a 46-minute video that has like seven views on it because it's the entire decision-making process around why I sold. And it's like 2 years ago, maybe 3 years ago. It's a really long video like We watched that and that's how we backed out of our first >> [laughter] >> Well, good. I'm glad it it served you. But now I mean now you got a much better offer. So, it just comes down to how risky is it that cuz the thing is is businesses, and this is when you can write down, businesses will always go up in value until the day they don't and then they're worth nothing.

5:04So, a business that grows will always be worth more. Even a business that maintains is worth more the track record they've been consistent. But the day the business goes down, no one touches it. So, that's the that's the knife's edge. Longer you keep it the more valuable it is. So, if you've hit a revenue ceiling or your entire business relies on you to grow, then I'd love to invite you out to our headquarters here in Vegas to learn how we scale. It's a my team spends 2 days with you to identify the thing that's holding your business back. And so, if that sounds interesting, click, book a call, and if you're a fit, we'd love to potentially see you out here in Vegas.