<div class="bbWrapper">I suppose I should clarify. When I say profit, I am talking profit after all business expenses. What my personal life costs has nothing to do with the business.. so I only included my business expenses in my original post. So even though I make 30k a month, my living expenses are about $10k. Which leaves about 20k profit. <br />
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I rent 2 houses here, I travel every few months and sometimes every 2 weeks. I have an awesome life and I like to spend money. I go out for dinner at least once, usually twice a week. We eat out all the time. etc. I'm definitely guilty of being terrible at saving. It was also an expensive year, this year. I tried opening an office here for another business idea I had, and after 7 months I closed my doors. That in itself, cost me about $50k. <br />
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I also have zero debt, I own everything outright but rent my homes. <br />
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My main business is about 3 years old. This is the business I want to sell. I have not been making 25k/month profit for 3 years. I started this business with my last $2,000 when I was 26. I just went and pulled my numbers for 2011. The first year was relatively slow, but I still did OK. Better than I thought actually. I started using my invoice system in May 2011, so thats when I have the invoices since. From May 2011 to December 31, 2011 I did $77,212 total revenue. May was $4,284 revenue, while December was $11,456. I do not have my expenses documented as I didn't start documenting those using the invoice system until this year (2013).<br />
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2012 was a great year and I grew to about 15k to 25k per month. I just checked and I did $16,170 in January 2012, and $25,989 in December 2012. The total in 2012 was $275,578.10. Again, I have no documented expenses in my invoice system. I really should have started to track these sooner.. but I didn't.<br />
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2013 has been great to me. I've averaged 20k-25k+ profit every month off just the one business. In January 2013 I did $43,380 in revenue. This month so far (1 week left) I've done $29,760 in revenue. From January 2013 to December 2013 I've done $475,110.60 in revenue. Keep in mind my business expenses never surpassed $10k/month this year. Lets be generous and say $12k in case I forgot anything. I have my expenses documented since August 2013. <br />
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So as you can see I've built things slowly but surely, over 3 years. I started with 1 employee, and scaled appropriately. <br />
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The second business, which is running at approximately 10k profit/month, has been running since late last year (2012) and only had a few clients up until February, when I slowly started to scale it out. I got things going pretty good now and it did $210k+ in revenue this year. <br />
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Tax returns would be an issue. I don't have any. I'm Canadian, but 'm not a Canadian resident. I live in Central America. As such, I do not pay CA taxes so don't have any sort of tax returns. With the structure I have setup, I am 100% legally registered offshore and bank offshore. I just turned 30 and have not lived in Canada since I was 19. And as a non resident of Canada I believe I don't have to file anything. At least I never have.<br />
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I should note both the business are absolutely 100% legal everywhere in the world. I am doing nothing shady whatsoever. I'm not trying to sell anyone here anything. And I do realize how entirely sketchy this all must sound.. no tax returns, I live in Central America, I make 30k a month, I mean.. come on.. it sounds a little far fetched and thats the entire reason I made this post in the first place. So I can get some advice on selling a company when you're in my position. I'm sure there are others just like me.<br />
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Hopefully this adds a but more insight to things. <br />
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<blockquote data-attributes="member: 632" data-quote="WestCoast" data-source="post: 320519"
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There are many ways to sell a business. Most business brokers in that size range will focus on 'Seller's Discretionary Cash Flow' ie, net profits, plus owners income, plus add backs. You can then multiply that by some number 3-5x is the generic range. And there you go. At least, this is what SBA loans will tolerate if someone needs to borrow to buy in the US.<br />
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If you are putting it out as an all cash deal, well, who knows, whatever the market will bear....<br />
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You being the primary salesperson is a large negative to business valuation, as the person who buys will need to do same.<br />
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I think your lack of location is a benefit honestly. I pay thousands of dollars a month to rent a large space. If that went away, that money goes into my pocket.<br />
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You'll need tax returns showing the size of the business and growth. My guess is you will get the most value in 1-2 years when you have shown the large 'net income' being steady for a solid amount of time.<br />
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Now, something also doesn't feel right about this. No judgement, but you say you have been doing this for 3 years.<br />
You have one business throwing off a net monthly profit of $25,000 (USD I assume?). And another business throwing off $10,000USD. For a rough total of $35,000USD a month in 'net profit'. That's just over $400k a year.<br />
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Yet, you only have $100k saved up.....<br />
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Either you are heavily reinvesting to grow business (or had a ton of debt to dig out of)<br />
the $35k a month 'net' profit is a very recent development,<br />
or, more likely, your net profit is really your gross profit before expenses.<br />
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Either way, if I saw those numbers I would be *very* curious if you knew the numbers as well as you said.<br />
Not being suspicious of what you claim, but something doesn't add up.
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