17 Feb Selling Momentum
Sometimes it’s best to just be a sell-out. There are a number of reasons for this. We get a myriad of different types of requests for people wanting to be the “sell out.” Selling out brings to mind the image of a “one hit wonder” band who never creates anything unique again because they keep publishing what everyone wants to hear. In business, it’s quite a bit different. Being a sell out in business is okay. Most often, that is one of the signs of success. For serial entrepreneurs, that’s often what they work toward, but what about those who are afraid of “selling out.”
Here is an example of a good sell out. An entrepreneur who creates a product or service to the point that it is wildly profitable, recognizes his or her limitations and maximizes the return by selling the business. In fact, a number of the clients we work with in our network have worked on various projects, many of which have included patents and intense product designs and creations, only to sell them a short time later after the *** hit the fan. On the other hand, there is the potential seller who has a great deal of selling anxiety and who thinks, “maybe now is not the right time.”
This is often true, especially with a steady and solid manufacturing company or a real estate business–especially if you are attempting to sell it during a recession. However, if you are attempting to sell a clothing company whose revenues are based on the current fad or style and you are making more than a couple million in annual revenue, you should really consider selling out and selling out quickly. Styles are fickle. Peoples’ choices change and my advice would be to get a quick payout today with the profits you are currently showing.
This is, of course, unless you have other plans to grow your business and stay on top of the latest fashion trends, which could be what you would like to do. Otherwise, selling out is the option I would choose. You never can predict the future. You certainly could eventually end up being the Facebook of of fashion with wild mainstream adoption, but chances are you will be more of the rule than the exception.
Our Seattle office came across this issue recently with a potential client. My advice is this: sell your company’s momentum. That means not only selling at the pinnacle of your success or perhaps what you would define as success, but selling your business as a growth machine. Not all hockey sticks are plausible, but selling on current momentum is easier when you are on a streak.