Why I Chose Not to Sell My Agency for $50K: A Deeper Look
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Chapter 1: The Growth of a Business
A business is akin to a plant; as it flourishes, its value increases, eventually bearing fruit.
At some point in your career, you may feel the urge for change, prompting thoughts of starting a new business or embarking on a freelance journey, perhaps even launching a YouTube channel. This moment is often accompanied by a blend of excitement and trepidation. Each moment devoted to this new endeavor feels euphoric, yet the underlying concern remains: the need for financial backing.
Securing a bank loan can be daunting, as the repercussions of failure loom large. While seeking investments might seem like a safer path, obtaining them can be quite challenging at the initial stages. This is where many aspiring entrepreneurs hit a wall.
I encountered a similar crossroads, but I discovered an alternative that wasn't initially apparent.
I have spent over a decade as a business consultant, beginning with the creation of business plans. Over time, I recognized my limitations in managing multiple clients simultaneously. Producing ten plans in a week was simply unattainable. In the world of freelancing, the mantra is to either grow or perish. Selling a single business plan for $50,000 would have been unrealistic. Thus, the key to growth lay in scaling my operations gradually.
To achieve this, I brought on another writer and began training her. After five months, I hired another, and the cycle continued. A year later, I found myself collaborating with a designer, a developer, five writers, and a virtual assistant. It dawned on me: I had unintentionally created an agency.
With this realization, I took the necessary steps to formalize my business. I established branding and addressed legal requirements, giving rise to Albusi— a consultancy agency with minimal overhead costs that operates purely on a commission basis. This became one of my revenue streams, although it required time and expertise to manage the team and serve clients effectively.
A Shift in Focus
As time passed, I found myself yearning to initiate a new venture. I began writing on Medium to pursue a content creation career, a pursuit I have continued passionately ever since. However, I understood that growth is essential; therefore, I sought ways to expand my content creation efforts. This realization led me to conclude that investing money could accelerate my progress.
I stumbled upon several articles on Medium regarding selling businesses on Flippa, particularly enjoying the insights from Jenn Leach. While selling a blog differs significantly from selling a consultancy, I decided to give it a try. I paid a small listing fee and detailed my agency's offerings.
It's important to note that I was only selling the brand, allowing me the option to create a new one later on. The agreements with my writers were non-exclusive, and I remained a pivotal player in attracting clients for Albusi, which is why I set a lower asking price.
Attention and Offers
A month later, I observed a surge of traffic to the website and received interest from over ten potential buyers on Flippa—not a bad return for a modest listing fee. I engaged in several meetings to explain our operations and what prospective buyers would gain from the purchase.
Ultimately, I received an offer of $50,000. However, I hadn't anticipated how my mindset would evolve as I pitched the agency to others, broadening my vision of its potential.
This prompted me to ponder, "What if I refine this further?"
Selling vs. Passive Income
I could have accepted the $50,000 offer and moved on. Yet, I considered the possibility of investing more time to make the agency independent. In a year, it could generate passive income. While it wouldn't yield an immediate $50,000, the potential was there over time.
However, I also recognized that this money would be beneficial for my new venture, leading to a moment of hesitation.
Time: The Currency of Life
After thorough reflection, I decided against selling the agency. There's a well-known metaphor about someone digging for gold and giving up just before the discovery. This is exactly how I felt.
I could still sell Albusi in the future, but I might also choose to continue investing in it and watch it flourish. I refuse to be the miner who gives up too soon.
Person: "What about your content creation efforts?"
Me: "There's an inverse relationship in terms of time invested in both. I plan to allocate less time to my agency and more to content creation, fostering growth in both areas."
Waiting for the Yield
A business is like a plant; the more it develops, the more valuable it becomes, eventually leading to the production of fruit.
Some may choose to sell when their plant is still a seed, while others may do so when it's at a medium size. There's no definitive right or wrong in these scenarios. If you feel that your plant can no longer thrive, it might be wise to sell it before it withers. Conversely, selling too early—before it has the chance to reach the next stage—is ill-advised. Patience is key; wait for the fruit.
I'm Al, a business consultant based in Zurich, Switzerland. I am dedicated to providing value to you, the reader. If you find my content valuable, feel free to connect with me on various social media platforms.