Diane Kennedy
Bronze Contributor
User Power
Value/Post Ratio
25%
- Aug 31, 2007
- 780
- 193
Hi Easy
Nice to see your postings. I missed you on the forum!
Not sure if this is helpful or not... I have a tendency to build companies with brand new ideas and am in command of the market...for a time. Then the competition comes in and they do it a little bit cheaper. I've tried both strategies. Twice I've sold and then seen the old business gradually decline. And I've stuck it out through the market changes, but it takes work because with the change in the market and competition, you've got to innovate again.
What is the barrier to entry for your business niche? For example, as a CPA with a large practice, there is a pretty high barrier to competition. Someone else would have to have a CPA license (requiring special education, training and passing a test) plus have years of experience. On the other hand, if I had a carpet cleaning company the barrier to entry would be pretty low.
If you've got a low barrier to entry, then I'd sell. If you don't sell, you'll get competition that will force you to continually lower prices. If you've got a higher barrier, then it might be worth it to stick through it.
Where is the value in your company? Unique methods? Client base? Could you reproduce it again, in a different way? (Best of all worlds - get the money and then just go build it again)
And, one more question - what would you do with your time/money if you sold? Where is your passion?
And, congratulations. It's nice to have options.
Nice to see your postings. I missed you on the forum!
Not sure if this is helpful or not... I have a tendency to build companies with brand new ideas and am in command of the market...for a time. Then the competition comes in and they do it a little bit cheaper. I've tried both strategies. Twice I've sold and then seen the old business gradually decline. And I've stuck it out through the market changes, but it takes work because with the change in the market and competition, you've got to innovate again.
What is the barrier to entry for your business niche? For example, as a CPA with a large practice, there is a pretty high barrier to competition. Someone else would have to have a CPA license (requiring special education, training and passing a test) plus have years of experience. On the other hand, if I had a carpet cleaning company the barrier to entry would be pretty low.
If you've got a low barrier to entry, then I'd sell. If you don't sell, you'll get competition that will force you to continually lower prices. If you've got a higher barrier, then it might be worth it to stick through it.
Where is the value in your company? Unique methods? Client base? Could you reproduce it again, in a different way? (Best of all worlds - get the money and then just go build it again)
And, one more question - what would you do with your time/money if you sold? Where is your passion?
And, congratulations. It's nice to have options.