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Fastlane Exit ??? What do I do???

Do I sell it or Do I keep it???


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    2

bizguy4life

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Hello everyone,

I am looking of some opinions and advice from those of you who have successfully fast-laned..
First and foremost MJ your book is amazing and it was a very enjoyable read...

I am 48 this year and I run a successful business in the service industry which generates close to 3 million per year...
I am also a Real estate investor and have numerous rental properties (15)which are all cash flowing for the past 10 years...

My Question is
I have put my service business for sale to see if i would get any bites and I got 17 bites!!!
out of 17 I would say 8 are just tire kickers and probably 6 have the resources and funds buy me out....

I listed for 2.1 M I got this number by simply cashflow x 4x

Do I sell ??? Or do I keep my 275k/mth flow ???????

Thanks in advance.....
 
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Tom.V

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Congrats! Lots of unanswered questions come up in my mind though:

  • Can you continue growing the monthly revenue from your current position or have you squeezed the market for what it's worth?
  • Are you bored with the business or still in love with it?
  • Is the business passive or can it be made passive?
  • Is the business at any risk for losing marketshare to competitors over the next 5 years or potentially getting innovated out?
IMO, if the risk of competition or innovation are on the horizon, it may be a good time to get out. If there is no real threat in that department and you can implement processes or employees to handle the day to day, why sell the money tree?

Your situation is entirely unique to you. Only you can really know if it's the right choice given your circumstances. Best of luck either way!
 

Supercar

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a successful business in the service industry which generates close to 3 million per year...

I listed for 2.1 M I got this number by simply cashflow x 4x

Do I sell ??? Or do I keep my 275k/mth flow ???????
I do not get it. Do you mean $12M? Because $3M x 4 = $12M .
 

bizguy4life

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Congrats! Lots of unanswered questions come up in my mind though:
Thank you My answers in BOLD below....
  • Can you continue growing the monthly revenue from your current position or have you squeezed the market for what it's worth?
  • I can still Grow it in other Cities and I can also add the technologies which you mention ...
  • Are you bored with the business or still in love with it?
  • Definitely bored but mostly hate dealing with the low caliber employees (I have 100 of them )
  • Is the business passive or can it be made passive?
  • It is semi passive - hiring is the biggest issue as the industry has a high turn over rate the business runs 24/7 but you are a baby sitter to the employees who are helpless, I have tried training and I have tried sending them to courses however they do not care to improve themselves so its a constant drag on the office. I have had assistants quit on me because they get so frusterated
  • Is the business at any risk for losing marketshare to competitors over the next 5 years or potentially getting innovated out?
  • This business will never completely be replaced by inovation and adding technology to the company will boost up revenues for sure.....
IMO, if the risk of competition or innovation are on the horizon, it may be a good time to get out. If there is no real threat in that department and you can implement processes or employees to handle the day to day, why sell the money tree?

Your situation is entirely unique to you. Only you can really know if it's the right choice given your circumstances. Best of luck either way!
 
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ZCP

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What would you do with the money?
What would you do with the free time?
What would you do to challenge yourself?
 

MJ DeMarco

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Industry outlook? Growth?
Is 4X a good multiple for the industry?
How strong are the barriers to entry?
Is there anything proprietary?
Where do you want to be in 5 years?

To be honest, the advice you get here will only be as good as the information you provide.

I wouldn't be making decisions on what we say, or don't. We simply don't have enough data.
 

MTF

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WJK

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Why not sell now? You have your RE income. Federal taxes are low. You'll have a pile of cash and you can do something else.
 

bizguy4life

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Industry outlook? Growth?
Is 4X a good multiple for the industry?
How strong are the barriers to entry?
Is there anything proprietary?
Where do you want to be in 5 years?

To be honest, the advice you get here will only be as good as the information you provide.

I wouldn't be making decisions on what we say, or don't. We simply don't have enough data.

Thank you MJ I am just looking for opinions
I want to exit and increase my RE holdings my portfolio should be able to generate some serious monthly rental income with a few more multi unit additions Plus I enjoy the RE alot more
Dealing with a staff of approx 100 is a real challenge.....

Thank you for the input
 

MJ DeMarco

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WJK

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This was exactly my train of thought !!!
There's a season for everything. Building businesses is a young man's game. Passive income through something like RE is the reward for playing that game. Take your money and run like hell!
 
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Wolfman

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Hiya Bizguy,
Congrats on getting to where you are.Your kind of conundrum is a fun one. I agree w/ WJK. Take your money and run like hell up to Alaska and marry her! Then buy her a summer house and learn the Alaskan housing/recreation market and use your expertise to build a rental/timeshare business.
Heck, it seems you like risk, roll those dice (whether it's Alaska or mansions on Mars.)
Greg
 

WJK

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Hiya Bizguy,
Congrats on getting to where you are.Your kind of conundrum is a fun one. I agree w/ WJK. Take your money and run like hell up to Alaska and marry her! Then buy her a summer house and learn the Alaskan housing/recreation market and use your expertise to build a rental/timeshare business.
Heck, it seems you like risk, roll those dice (whether it's Alaska or mansions on Mars.)
Greg
Thanks for the suggest, but my husband would take execption to it. Bizguy's in a perfect position to take advantage of the work he's done. I sure wish him good luck and lots of happiness.
 

BrooklynHustle

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