Dear Aunty B,
I have just found your website, while I was looking for a site to sell my business. So here is my problem in a nutshell. I started a business seven years ago making high quality windows and doors. I do not want to give you the name as it’s a well-known company in the industry and I don’t want people to know what I am thinking.
After seven years of building the business with world leading machinery and having the products fully tested and putting systems in place so I could get you making windows after about one hours training, I have just had enough.
I have had the business valued at between $850,000 –and $1,000,000. I am 39-years-old and if I did sell, I would be debt free and walk away with about half a million. I have always wanted to be a building surveyor so I am thinking of retraining. They can earn between from $60,000 to $150,000, which is what I earn from the business, so I could earn the same money with no problems of manufacturing.
The other option is to go the other way and scale the business right up. The machines I have could produce about $50,000 a day of components, but I just feel I want a change. Also my website needs updating and many Asian companies keep trying to take my domain name for some reason. I have a full order book up to September this year and we have just had our biggest quarter. What do I do? Cash in and sell? Pay off my debt, buy a beach house and take it a bit easy for the rest of my working life? It sounds good to me. Any advice would be welcome. After seven years of manufacturing I have thick skin so please go for your life.
Regards
Dear Regards,
Let me say a few things right up front. If you think you could get me making windows after an hour’s training you are seriously deluded. I can’t even wash them properly. Furthermore, all those Asians companies that want to take your business name are scammers. We all get five emails a day from these type of people saying there are domain name issues. If you read SmartCompany regularly you would know this, so don’t give it a moment’s thought. Having said that I hope you have all your trademarks in place.
So let’s get to the heart of things. Why are you asking an ambitious entrepreneur for advice? I might have the pleasant name of Aunty B, but my passion is aggressively growing businesses. Why go off, start again at the bottom of the heap when your greatest challenge lies ahead?
Here is your new aim: to take your business to the next level, pay off your debt, take dividends from your business, put your salary higher and sell it off in 10 years time for $10 million.
This is the perfect time for you to put your business on steroids. How do you do it? Get yourself a board, made up of people that have taken successful businesses to the next stage. Yes, you will have to pay them $20,000 a year for six board meetings or so a year but it will be worth it!
If you have a terrific growth oriented accountant whack her on your board as well. Second, set ambitious targets based on a well thought out plan for expansion. Thirdly, assemble a great leadership team and reward them well for meeting the targets.
Your aim is this: to double revenue in four years, pay yourself a lot more money, take dividends from the business to pay off your debt and save for that beach house.
You have done all the work to put the key elements in place for a successful business. It is a big step taking it to the next stage. But what greater challenge is there?
Be smart,
Your Aunty B
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