Should I expand my business?

[BlackMagicX]

Last time I posted on here it was to get validation for my business idea, which is now a year old.

At the moment the business generates £6k to £7k a month in revenue (on average), although this fluctuates depending on the time of year. I dropship 99% of my products and occasionally buy and sell locally, but I'm at the stage now where I want to either expand or sell. I say this because i'm losing some interest for it.

Also, when I say expand I mean possibly partnering up with someone with some fresh ideas and a passion for the market. But I don't know how to go about this?

I have considered emailing competitors in my space to see if they'd like to buy up some of the business, but then I think, the amount of revenue it generates is probably not enough to interest them.

I've also considered expanding using financing and going direct to the product source, but I don't think I'm motivated enough for the additional stress. I'd only do this with someone else, not on my own.

Has anyone been in this situation before?

It's also worth noting that I'm ranking in search engines well. So this gives the store a lot more value.

 

[The Byre]

Selling a company successfully (as opposed to dumping it for whatever you can get!) is a long and drawn out process. You could start by looking here - http://ukbusinessbrokers.com/gallery/ and subscribing to the newsletter to get the in-depth articles.

As for your question "Has anyone been in this situation before?" I think we all have at one point or another. I was running a successful trade magazine news agency and was sick to my back-teeth with dealing with journalists who file late, editors who want the impossible by 2pm and articles that start with 'Sony looks to the Future!'

But when selling up became a reality, it took over a year and a great deal of work to put the whole thing into an acceptable form that anyone would actually want to buy. This was followed by about 18 months of handing over and getting paid.

The difference between the money you can expect for a company that is ready and fit to be sold (P&L accounts, full marketing budget up-to-date, sexy new website, good branding, loyal staff, etc.) and some part-time drop-shipping outfit providing you with a side-income, is the difference between night and day.

One is a business - the other is just a part-time job and not worth much.

 

[BlackMagicX]

Selling a company successfully (as opposed to dumping it for whatever you can get!) is a long and drawn out process. You could start by looking here - http://ukbusinessbrokers.com/gallery/ and subscribing to the newsletter to get the in-depth articles.

As for your question "Has anyone been in this situation before?" I think we all have at one point or another. I was running a successful trade magazine news agency and was sick to my back-teeth with dealing with journalists who file late, editors who want the impossible by 2pm and articles that start with 'Sony looks to the Future!'

But when selling up became a reality, it took over a year and a great deal of work to put the whole thing into an acceptable form that anyone would actually want to buy. This was followed by about 18 months of handing over and getting paid.

The difference between the money you can expect for a company that is ready and fit to be sold (P&L accounts, full marketing budget up-to-date, sexy new website, good branding, loyal staff, etc.) and some part-time drop-shipping outfit providing you with a side-income, is the difference between night and day.

One is a business - the other is just a part-time job and not worth much.

Thanks for your reply,

Of course, I'd expect a 'business' to sell for more and involve a longer sale process, however, there is a market for more passive income out there, and I could argue that me owning 4 or 5 'part-time businesses' actually makes the operation more valuable than one 'real business'. I think e-commerce and dropshipping is a sensible, risk-free business model in 2018. This is where the value lies in selling it. I'm happy with the 5 figures that's worth.

So back to your point, are you suggesting that selling AND expanding are both bad ideas? lol

 

[antropy]

At the moment the business generates £6k to £7k a month in revenue (on average)

But how much profit does it make?

 

[KarenBridges]

Last time I posted on here it was to get validation for my business idea, which is now a year old.

At the moment the business generates £6k to £7k a month in revenue (on average), although this fluctuates depending on the time of year. I dropship 99% of my products and occasionally buy and sell locally, but I'm at the stage now where I want to either expand or sell. I say this because i'm losing some interest for it.

Also, when I say expand I mean possibly partnering up with someone with some fresh ideas and a passion for the market. But I don't know how to go about this?

I have considered emailing competitors in my space to see if they'd like to buy up some of the business, but then I think, the amount of revenue it generates is probably not enough to interest them.

I've also considered expanding using financing and going direct to the product source, but I don't think I'm motivated enough for the additional stress. I'd only do this with someone else, not on my own.

Has anyone been in this situation before?

It's also worth noting that I'm ranking in search engines well. So this gives the store a lot more value.

If you rank well in google and you don't mind altering your business focus, why don't you start developing a new business activity, hosted on the same website, but separated from the initial product?
That is, if it's your website/FB profile that ranks well, and not your shop on any ecommerce platform.
This way you could delegate some of your responsibilities (or give up the whole thing overtime), focus on the new business, and start it off from a very good place Google-wise.

 

[Anderz]

What were your goals with your business in the first place? It seems like you lost sight of it. You should be on a misson towards your goal and love it. Once achieved you can set new and higher goals.

If you have gotten to a certain place and your goal has been well accomplished then yes maybe it is time to expand and grow. Set the income goal higher and so forth. You got a lot of options for advertising so if its time for a new goal that really is one you can get emotional about then by all means expand.

 

[fallschirmjaeger]

Am I missing something - you turnover 6k a month so assume you make a profit of say approx. £1.5k a month and you 99% drop ship then you are effectively making money doing very little! I would keep it going and look to expand or start up something that is more interesting.