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Selling a business?

StartupsRFun

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I have a greenhouse business that in the last 5 months has done well ($300+k) in revenue, but I am trying to move on from the business as my passions have changed I am now invested in a tiny home business that takes all of my time. At this point I am not even trying to make a lot from the greenhouse business, as I want someone interested to take it over and continue to grow it. It took a while to get to the point I am at now, so I dont want to give it away for free, but where would be the best place to try and sell this business? You can check out the website: Canopygreenhouse.com

Just look for suggestions.
 
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Twiizlar

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You should definitely contact an actual business broken for a business this big.

Congrats on $300k/months revenue though that's impressive.

I'm always curious but what is your profit margin on the $300k. You don't have to answer if you don't want to though.
 

StartupsRFun

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You should definitely contact an actual business broken for a business this big.

Congrats on $300k/months revenue though that's impressive.

I'm always curious but what is your profit margin on the $300k. You don't have to answer if you don't want to though.

Thanks, appreciate it. Right now because our supplier is in China, its about 8%, which isnt bad given the amount we sell, but if the trade war would end it would be a lot more.
 

minivanman

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I'm not real sure it's worth much. If I bought it and paid someone to run it, I'd probably minus $15,000+ a year depending what all the 8% profit already includes or doesn't.
 
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StartupsRFun

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I'm not real sure it's worth much. If I bought it and paid someone to run it, I'd probably minus $15,000+ a year depending what all the 8% profit already includes or doesn't.

8% is the lowest it would ever be, as I have raised my prices and am still getting customers. I just dont want to provide any false info. Also its for the last 5 months, so the rest of the year could be really good. Without the tariffs the margins would be in the 30% range.
 

ZeroTo100

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8% is the lowest it would ever be, as I have raised my prices and am still getting customers. I just dont want to provide any false info. Also its for the last 5 months, so the rest of the year could be really good. Without the tariffs the margins would be in the 30% range.

Hey, are you storing any product or is it dripshipped from your manufacturer?

Additionally, have you ever experimented with a different sales system on your site? Does everyone have to fill out that form before they buy? Kind of a pain in the butt. Wish you had an about page, wanted to know how long you were in business...

I think most people prefer businesses that have good margins so I would be looking for ways to improve those margins.

Is the product selling in states where MJ is legal? Are you selling to other markets?

Like the business, hate the margins and product size. Can you share some more details? Feel free to PM
 

StartupsRFun

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Hey, are you storing any product or is it dripshipped from your manufacturer?

Additionally, have you ever experimented with a different sales system on your site? Does everyone have to fill out that form before they buy? Kind of a pain in the butt. Wish you had an about page, wanted to know how long you were in business...

I think most people prefer businesses that have good margins so I would be looking for ways to improve those margins.

Is the product selling in states where MJ is legal? Are you selling to other markets?

Like the business, hate the margins and product size. Can you share some more details? Feel free to PM

We dropship everything through a supplier I was able to land due to a friend looking to expand to North America.

I used to have prices on the website, but because everything is so customized I went to this method, plus it allows us to talk with the customer and find out what their needs are.

Our main market is hemp/mj, as our product actually saves customers money who grow. We have tried selling outside that market, but honestly we get so many calls and emails from customers in that market that we havent had much time to think outside of it. The margins are lowish, but if you factor in the price of a sale they arent bad, and like I said, prior to the trade war they were much better and I believe here soon they will be back up.

And I should point out that the 8% I calculated was based on some recent purchases that were made prior to the 25% tariff hike, but will be counted in them unless a deal is reached. Since then we have raised our prices so our margins are more like 20% now.
 
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minivanman

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8% is the lowest it would ever be, as I have raised my prices and am still getting customers. I just dont want to provide any false info. Also its for the last 5 months, so the rest of the year could be really good. Without the tariffs the margins would be in the 30% range.

But as of today, it's not really worth anything is what I was saying. 5 months isn't that long, the rest of the year could suck and the tariffs are in place today. No one in their right mond buys a business on what if's..... some people DO buy businesses on what if's, I was just saying, no one in their right mind does.

I have this old house on 2 acres in a small town out in west Texas. It's right behind the school, so its in a great location..... If a person were to fix it up and if the town grows within the next 10 years it could be worth $5 million, but today it isn't fixed up and the town has about 1200 people in it and it's worth about $5.

Looks like we are in the same boat :)
 

StartupsRFun

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But as of today, it's not really worth anything is what I was saying. 5 months isn't that long, the rest of the year could suck and the tariffs are in place today. No one in their right mind buys a business on what if's..... some people DO buy businesses on what if's, I was just saying, no one in their right mind does.

I have this old house on 2 acres in a small town out in Texas. It's right behind the school, so its in a great location..... If a person were to fix it up and if the town grows within the next 10 years it could be worth $5 million, but today it isn't fixed up and the town has about 1200 people in it and it's worth about $5.

Looks like we are in the same boat :)

Yeah I definitely get what you are saying. Things were definitely better 5 months ago, heck even a month ago.
 

minivanman

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I might be willing to trade you the house for it. You have a great potential if the cards fall just right.... :rofl:
 
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vinylawesome

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But as of today, it's not really worth anything is what I was saying. 5 months isn't that long, the rest of the year could suck and the tariffs are in place today. No one in their right mond buys a business on what if's..... some people DO buy businesses on what if's, I was just saying, no one in their right mind does.

I have this old house on 2 acres in a small town out in west Texas. It's right behind the school, so its in a great location..... If a person were to fix it up and if the town grows within the next 10 years it could be worth $5 million, but today it isn't fixed up and the town has about 1200 people in it and it's worth about $5.

Looks like we are in the same boat :)
I know someone who buys property out in the rural areas of Texas: Central all the way to west Texas. If you're serious about selling I will send you his information.

@StartupsRFun In regards to your situation, 5 months isn't a lot of time to show a track record for a more conservative buyer. Business probably wouldn't qualify for SBA, etc. My suggestion as someone else has made is contact one of the online business/ drop ship eCommerce business brokers. The valuation might be low but you might get a buyer through them.
 

CareCPA

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Most brokers are going to want to base the price off a multiple of the trailing twelve months. If you've been consistent for 5 months, some will annualize the price based off of that, but they'll disclose that methodology in the listing. The lower profit from the tariffs, and the short profitability is going to hurt you.

It's also likely seasonal, so a potential buyer would discount based on that. Presumably winter and spring are your busy months, and you'll be slower for the next 6 months? Just thinking like a buyer here.

The question is: are you just looking to move on, or are you trying to maximize sales price?
 
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ZeroTo100

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We dropship everything through a supplier I was able to land due to a friend looking to expand to North America.

I used to have prices on the website, but because everything is so customized I went to this method, plus it allows us to talk with the customer and find out what their needs are.

Our main market is hemp/mj, as our product actually saves customers money who grow. We have tried selling outside that market, but honestly we get so many calls and emails from customers in that market that we havent had much time to think outside of it. The margins are lowish, but if you factor in the price of a sale they arent bad, and like I said, prior to the trade war they were much better and I believe here soon they will be back up.

And I should point out that the 8% I calculated was based on some recent purchases that were made prior to the 25% tariff hike, but will be counted in them unless a deal is reached. Since then we have raised our prices so our margins are more like 20% now.

I hear ya. I was invested in a marijuana lighting company for a while and never did see any true profit.

I wish there was more of a craft market for it but I just think it’s way too soon. Like the concept though.
 

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