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View Full Version : Issues Trying to sell a home based mobile business - Any input welcome



mattb1979
09-08-2016, 03:00 PM
Hello

I need some help from anyone that has experience selling a mobile / home based business

I have not read the book but i have read what it is about The four hour work week is all about automating your business and being able to travel and have more time to yourself as a business owner. I donít agree it is possible to work 4 hours a week ...anyway.

Below is info on how I have run things for the last 5 years - sort of similar to what that book preaches. What I am struggling with is I have the business listed with various business brokers but they seem "old school" in their thinking with the common thread being: It does not have a storefront, no inventory, no significant machinery... for me it is easy to see that this is the single biggest advantage but they see it as exact opposite.
It is frustrating because this business has taken care of me and my family (four kids) for the last 9 years and I have travelled a lot without missing a beat in the company

Here is the info that I have provided to the business brokers to share with prospective buyers:

Company background:

I started my lighting business in August 2007 after finding an amazing technology manufactured in Trumbull CT Ė the product was very intriguing to me and I began exploring the reasons for it not being available in Canada. As it turned out there was no electrical certification listing for these lamps in Canada so I decided to invest the money and be the first to do this. We obtained the listing 6 months later and we went to market with the product in Canada. After roughly 6 months marketing the product we very quickly realised that the it had multiple flaws and was very difficult to integrate as it was a high voltage product, all designers we spoke to wanted low voltage and it was at this time that we decided to use our integration knowledge and seek out LED technologies that can achieve the same applications as EL. We found suitable products in Ontario and we shifted focus on to LEDs from then on. We went on a decent run in 2009 and 2010 and things got better in 2011. We have added multiple products specific to many different custom applications. We have only added new products as the demand rises for them.

Financial Year on Year:

From 2008 to 2011 I was personally on the road travelling and visiting every major designer in Vancouver, we developed relationships with many designers which we continue today. At this point I was a one man show doing everything from Admin to Sales and quoting, I was working 20 hours a day to get the business off the ground. We did decent sales during 2011 and the business was on an upswing. The sales cycle on these products can be a bit lengthy and I was starting to see the fruition of my marketing and sales calls, as we pushed into 2012 we landed two projects that I had specified in late 2010 and early 2011. One project was a massive lighting installation for a church in Calgary and the second was McCarran international in Las Vegas. I personally wrote the spec on these projects and it was copied and pasted right through to the end.
Our revenue jumped in 2012 to over $450000.00 from $270000.00 in 2011, as previously stated this was the fruition of beating the street going door to door for more than 2 years. This fact is important as you will see below.
In 2013 the revenue dropped and then went up again in 2014

Full disclosure of business Structure 2012 to Present:

Being South African, in 2010 we (as a family) decided to return home on vacation for 6 weeks. During the 6 weeks I was not able to take time off so I brought my laptop and two screens along with me and worked the entire time. By mid-2011 I was doing around 80 percent of our revenue in the USA and I was working from a home office in Canada. By this time I had pretty much outsourced every function of the business except sales and marketing and things were going well. During 2011 and with a recent quad heart bypass surgery on my mother, I was pondering the future of the company and whether I should sell it so I can spend more time with my family, during this time it dawned on me that with the current outsourcing structure and the fact that we are doing 80% of our revenue remotely: how would it be any different if I have a customer in Florida and they are serviced from Canada or South Africa?

In December 2011 we moved back to South Africa to be closer to family and I have been operating the business from here since, I work ET hours which translates into an interesting schedule. . Even though we have a small mailing handling sorting and shipping office in Canada and we are a Canada registered Corporation we are managed and run from South Africa.
I have travelled extensively and not had to stop working or earning an income

In reference to the revenues mentioned above- when we moved to South Africa I knew that revenue would drop as I would not be present in North America at all times for face to face meetings. I focused above on the explanation of the 2011 into 2012 revenues to illustrate a point relating to what happens when you have an active sales person calling on clients every day. Adding a telesales person to the mix would be the first step to getting those revenues up to $400000.00 +

I have outgrown this business as I have four children so the advantages of being able to travel and work are making less sense for us. This business would be well suited to someone who is single or with young children and wants to travel and have fun.

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If anyone is out there that has sold a similar business it would be great to hear how you went about it

Cheers

M

EA_Gingr
10-11-2016, 12:20 PM
I would really suggest doing more 'research' towards finding more business brokers to help sell your business. Secondly, research how other ebusinesses had succeeded in getting sold, see if you can follow the same path. Third, go to your business plan and update your 'exit' plan.

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11-11-2019, 12:44 AM
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jhondavid
01-04-2020, 05:36 AM
Hello I need some help from anyone that has experience selling a mobile / home based business. I have not read the book but i have read what it is about The four hour work week is all about automating your business