I know it would of been capital/technology/labor intensive but sometimes MJ has to be asking himself if it was a good decision financially. I understand his means to an end were met, but still. While i agreed with 5 points in his blog, one did not settle well with me:
6 Reasons Why I Sold A Business With A 6-Figure Monthly Cash-Flow
I predicted that my revenue model would be unsustainable.
Due to technological advancement, I didn’t think lead-generation in my particular space was sustainable longer than a few more years. This meant, in order for my business to grow, I would have had to switch revenue models to a reservation based service. If you’re not familiar with the limousine business, a reservation-based service is both labor and technology intensive. My objective was to sell a majority interest (I still own a tiny % of Limos.com) to a capable investor group who shared this same vision of a reservation-based model and sit back and watch them do it. This is exactly what happened — the new management is slowly phasing out the lead-gen model. With this transition and based on the latest funding round, the company is probably now worth 5X the valuation at which I sold it. My effort in this growth has been nothing.
This is life though. All new businesses have to deal with the changes in technology quicker and quicker today, this should be more of a reason to hold onto the business and not sell because of the "do what you know best". You already have solid brand recognition, reputation, fully understand the market, and know the ins and outs. Wouldn't it have been easier to deal with the challenges in your current market rather than approach a new market and deal with those new evolving issues? This learning curve would be much steeper for you.
Did you need outside funding? Couldn't you self fund it at this point? You could have gradually moved your way into it not had to dump millions due to your strong brand recognition and loyal customer base.
100% respect the decision but these were the honest thoughts running through my head when i read that. Not sure if that was a personal opinion or trying to justify financially how it made more sense to sell or keep it.