Just sold my computer business for multiple five figures...

[geeknz]

Dear Technibblers,

Firstly I want to thank everybody in the community who has helped or offered advice to me over the past few years. This is a truly great community.

A special thanks goes out to Bryce for setting up Technibble all those years ago.

Now onto the exciting news, which I alluded to in the headline...

Four years ago - I started with exactly zero clients and just a burning desire to build up a computer service business to support myself and the family. Within 12 months I had achieved that (and then some). I was full time with the business and having a blast.

I am proud to say that on the fourth anniversary - I have just sold the business to a local competitor for a figure well into the five figure range.

The business was doing incredibly well, and some people think I was crazy to sell, but I simply got bored and needed a new challenge, and that challenge presented itself recently when I was offered a very exciting job by another company. This job offer forced me to make a decision about the future of my business. In the end - I decided I needed a change and sold up.

I have two reasons for this post. One is to say thanks to everybody for their help, the other is to get everybody's advice.

I would like to 'productize' my experiences that I have had over the years so that I can share this knowledge with as many people as possible and (hopefully) help many people along the way as well.

Obviously - the forums are a great way to do this, as I have been doing for the past few years. But the posts are fragmented and don't tell 'the whole story' in a clear way.

So.... here is my question to you (actually there are three questions).

Do you want me to create a product fitting the description above?
If so - what format would you like? i.e. eBook, Webinars, DVD series, Audios
What questions do you have that I can be sure to answer in the product?

As many of you know - creating a product is incredibly time intensive so if I am to do it I want to make sure I am creating worthwile content. This is something I have been considering for a while but I would greatly value your feedback first.

Thanks in advance Technibblers!
Kind Regards
Sean

 

[Mercenary Roadie]

Congratulations.

Seems 5 figures is a litlel low for all the work you put into it. As 5 figures is somewhere between $10,000 and $99,999.

If you're happy, I'm not one to complain

 

[geeknz]

Hey Patrick,

You're right - it was a GREAT deal for the purchaser.
I was happy with what I got for it. Could I have gotten more? Possibly. But I believe in creating win-win deals with other people and so I was happy with what I got.

To me, it was worth a lot more than I sold it for.

However in order to actually sell the business, I had to make it a good deal for a purchaser, and also accessible financially. Initially I was asking for a lot more, but in the end I was happy to lower the price in order for it to actually sell.

I wasn't far from walking away completely without anything to show for it - not because it wasn't making enough money (it was making plenty) but because I was getting bored.

 

[LionelJohnson]

Hi Sean

Did you support SMEs or domestic consumers?

In my opinion, you can't go wrong with an eBook!

However it baffles me why you would stop working for yourself just to be an employee again.

 

[Markverhyden]

Not having any details about the scope of your business I would say the the price may have been fair.

Valuing a business is tricky and business owners tend to over value their business for a number of reasons. Some valid and some emotional, just like property owners.

Customer lists actually have little value unless there is re-occurring revenue attached to them. Like MSP type contracts, hosting or regular purchases like prepaid blocks of time. Product sales does have value if one can prove a loyal walk in trade.

On the idea of monetizing your experience with this. It can be quite difficult. A former customer of mine had a couple of dental offices. But he also started up his own dental consulting business and then sold both practices when he went "full time".

The basic idea was to help wean dentists from the managed care, insurance reimbursements, aspect of their business to cash paying customers. He has been quite successful even after the economic melt down here in the US.

His site - 1000gems.com

Might give you some ideas. He spent a lot of time and money working with another consulting company. Basically a consulting company for consultants.

http://gkic.com/

At any rate. Congratulations on being able to convert your previous efforts into a meaningful amount of cash. A lot of small business owners, to borrow a phrase from US General George Patton, just fade away.

 

[Krynn72]

Congrats on the sale! Sounds like you're happy with it, and thats all that really matters. I would be very interested in a sort of "post-mortem" kind of report. I've actually been looking around for a detailed, written-out accord of someone's experience building a tech company from starting days up through well-oiled machine days, and any insights on things they were glad to have done, and things they'd do differently.

eBook would probably be the best way to reach the largest possible audience.

 

[tom11011]

Quality ebooks are hard to find, you should consider this route.

Congratulations on successfully exiting your business, something all business owners need to do at some point.

 

[geeknz]

@LionelJohnson:
My business supported both domestic and SME clients. Initially we started out servicing mainly domestic but over time we picked up a lot more SMEs as the familiarity and recognition of our company grew.
Yes - some people still think I'm crazy by going back to work for somebody again. I wouldn't have accepted a job offer from anybody though, and the company that offered me a job is an exciting team to be a part of. I'll start another business in the future though... I have the bug now!

@markverhyden
You're absolutely right with what you said. I did have a few bits of re-occuring income here and there but there was virtually no guaranteed income. What I had done was built up a loyal following and the purchaser could see the value in that. Thanks for your suggestions. I am familiar with GKIC (I even used some of their marketing strategies) and have had good results with them.

@Krynn72
Thanks for your feedback. I like the idea of a post-mortem type report.

@tom11011
Thanks for your feedback too. It's sounding like the ebook is the best way to do it.

 

[IJAC]

Best of luck

Sean first let me commend you for wanting to help other people it is a rare trait I find now days. Congratulations on your sale but also sorry to see you go. I can understand wanting to get out due to being bored. I get that way myself at times.
I have to agree with others I think a eBook would work rather well.What ever you decide I wish you the best of luck and much success in your new endeavors.
IJAC

PS: I would be interested to acquire a copy of what ever you decide to publish.

 

[geeknz]

@IJAC
Thanks for your kind words! I feel it would be a waste to let my experience of building the business just fade into nothing. Everybody's path is slightly different but I certainly feel I can give people some good pointers and avoid a few big mistakes. Another +1 for the eBook... sounds like it is going to be the way to go.

 

[wefixit]

I'm waiting for that eBook already and it's valuable info. I have recently started my business too and I could use your info

 

[callthatgirl]

Sean, Matt Rodela just wrote a new eBook and it's very nice. Here is his website to contact him about his editor/graphics, etc.

http://www.yfncg.com

Good luck, glad to see you moving on with new adventures! I'll miss you around here.

 

[geeknz]

@wefixit
Thanks for your thoughts!

@callthatgirl
Thanks Lisa - I must say that you have been a great source of information and I have made (or saved) a lot of money off some of your ideas.
I will be sure to contact Matthew - it looks like he has already done what I am planning, which is great!

 

[Y.F.N.C.G.]

@Lisa, tanks for the mention!

@Sean, sounds like a great concept for a book....feel free to reach out with any questions you might have during the writing process.

 

[callthatgirl]

Sean, I think your eBook should be "How to build a successful business that you can sell". I'm sure many of us would like to hear your story, learn from you and how to build that type of business because not only have some of us thought of selling, but building on. I've bought a business, so you could include that information. I had no idea what I was doing when I bought a business, I bought one that was on the dying end (it was very cheap btw), what if I bought one that was successful?