Whats the best way to exit a slow lane business?

[MisterBHZ]

For the past 5 years I've been running my print shop as a 1 man show. While I am appreciative of be able to live off my own business & help others with my services, it has reached a point where I must move on.

The reasons? The biz is 100% dependent on my time & requires 100% manual labor to complete orders. And, did I mention that its 100% location dependent too? Not to mention the equipment malfunctions.

If I hired someone, it would reduce my profit margins to about 20-25% and it would be a hell calling training/dealing with employees in my line of work. Not worth it.

Every day my phone rings off the hook with customers placing order. Many of them expecting me to do their orders right then and there regardless of workload or time. After a certain time, I stop answering calls but yet people still call multiple times in a row because I don't answer.

So, earlier this year I started a new online venture with better conditions. It has produced some sales so the value proposition has been validated. With this venture, it can reach the world. Sure, I am still a 1 man show and still have to work but it doesn't need me to run. I create digital goods and those do the heavy lifting for me. Now, I just have to work on improving value, trust, visibility & brand power to make this full time.

Now, with my slowlane business, its pretty much a monopoly in my local area. My customers need me. They depend on me. Many of their livelihoods are counting on the continuation of my services. But, little do they know, I won't be able to do this much longer. There's more to it but this it in a nutshell.

Once my new venture can replace my income, I plan on closing down my print shop. People will definitely be disappointed.

Whats the best way to exit a business and move on to another?

 

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[JDx]

You seem very desperate about switching businesses. It sounds like there is a huge need you are fulfilling though, even though you claim it is not fastlane.
What would happen in a year or 2 if you instead invest on improving the equipment to prevent malfunctioning and hire someone to share the work load?
Teaching someone new the skills of a trade sucks at any field, but the point is that that eventually it pays off.

Every day my phone rings off the hook with customers placing order. Many of them expecting me to do their orders right then and there regardless of workload or time. After a certain time, I stop answering calls but yet people still call multiple times in a row because I don't answer.

Sounds like a good business, too many customers?!

Why is the business 100% location dependent? Is there no way for you to open up shop in the town next door too?

Sorry for not answering your main question, I'm just very curious

 

[ZCP]

Go back and write up your system / processes / etc. List the business with a broker. Sell it.

OR if you know someone local wanting a start...... let them 'buy in' over the next two years. Give them phone numbers for maintenance and a FAQ for what might go wrong.

Damn sure wouldn't just walkaway from a business with 'too many customers' that could hire and still pull 20%!

Suck it up for 6 months. Get a copy of Gerber's Emyth. Turn it into a sellable asset!

 

[MisterBHZ]

You seem very desperate about switching businesses. It sounds like there is a huge need you are fulfilling though, even though you claim it is not fastlane.
What would happen in a year or 2 if you instead invest on improving the equipment to prevent malfunctioning and hire someone to share the work load?
Teaching someone new the skills of a trade sucks at any field, but the point is that that eventually it pays off.


Sounds like a good business, too many customers?!

Why is the business 100% location dependent? Is there no way for you to open up shop in the town next door too?

Sorry for not answering your main question, I'm just very curious

Yes. I carved out a solid niche in my city. People line up to pay me. But, its based on dying technology which is the CD. Not even sure how long printing this type of media will last. Definitely don't want to wait until the well runs dry then have to figure out how to live.

It's location dependent because I have to be in a specific spot to do the work which is my office. I can't do the work while I'm on a road trip. If I can't make it to the office for any given reason, then I don't make money. I could open up more locations but that would require a lot of capital. And, with the use of a CD getting slimmer & slimmer each year, I don't think that would be wise.

 

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[SteveyBoy22]

I feel your pain. ZPC Said

Go back and write up your system / processes / etc. List the business with a broker. Sell it.

. If you have sales coming in you must have a good sales income, and therefore will be worth something to the right buyer.

Having just read the Millionaire Fastlane , I too am in a business tied to my time and feel the need to break free from it. But when you've spent years building it up, it feels strange to want to let it go. I kind of knew before I wasn't going to go where I wanted, but the book has given me the nudge I needed.
THE PROCESS HAS STARTED

 

[MisterBHZ]

I feel your pain. ZPC Said . If you have sales coming in you must have a good sales income, and therefore will be worth something to the right buyer.

Having just read the Millionaire Fastlane , I too am in a business tied to my time and feel the need to break free from it. But when you've spent years building it up, it feels strange to want to let it go. I kind of knew before I wasn't going to go where I wanted, but the book has given me the nudge I needed.
THE PROCESS HAS STARTED

Before I read the book, I was cool with giving my biz all my time and making money. I don't think nothing of it. But after reading the book, my mindset changed about time trading and I've been on a mission ever since.

 

[ZCP]

Then why not find the owner's manual, Armour All the tires, touchup the paint, and cleanup the 'car' to sell?

Do you not see the countless threads on 'how do I start', 'what can I sell', 'how do I find customers', etc.? You already have a cashflowing asset!!

There is a place down the street that fixes VCR's. There is a company that makes the fill in pieces for the back of old Cadillac's. Someone will be interested in obtaining what you have built!

 

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[Yoda]

1. Begin creating SOP's immediately. If you have to hire someone to follow you around, record your every move, and pencil it, do it.
2. Gradually start raising prices.

This is very, very effective at a couple things:

• Immediately creates an exit opportunity where you can leverage the business and its processes for the highest possible value.
• Immediately creates a continuance opportunity where you can a.) earn more and not do more, or b.) hire out and keep your margins at a place where it's worth your time up front.

Then you can evaluate your stay or go position when you can do either with much more ease and profit.

 

[Deri]

Then why not find the owner's manual, Armour All the tires, touchup the paint, and cleanup the 'car' to sell?

Do you not see the countless threads on 'how do I start', 'what can I sell', 'how do I find customers', etc.? You already have a cashflowing asset!!

There is a place down the street that fixes VCR's. There is a company that makes the fill in pieces for the back of old Cadillac's. Someone will be interested in obtaining what you have built!

true words indeed. why not sell on the company as it is and concentrate on whatever else you are doing???

 

[Vigilante]

Fast and profitable.

 

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[OldFaithful]

Every day my phone rings off the hook with customers placing order.

I'm sure we all wish we had this problem. However, I can understand the dilemma. If the business fails the commandments of Time & Scale, then you need to re-evaluate the model if you want to be free. I'm certain you've given it some thought, but perhaps the brain trust here might help you find a way to achieve Time & Scale. Then you can develop a passive income from a proven need & known customer base.

Do you have enough sales to support automating the production process? There are a variety of techniques you might consider to automate printing...

 

[SteveyBoy22]

Before I read the book, I was cool with giving my biz all my time and making money. I don't think nothing of it. But after reading the book, my mindset changed about time trading and I've been on a mission ever since.

Its an eye opener isn't it.