How does one go about selling one's business?

[daniedb]

ETA: Okay, I should have googled first, found some good information. Now, my real question is: is it possible to sell a business without selling the *name*? Here's my dilemma: the company name is named after my son, and while I realize that he's not the only Henry in the world, I still feel really weird about selling the business name. Just do...no rhyme or reason. So, IF I do decide to sell my stuff, which is a long shot, I would love to sell the label design, formulas and all my raw ingredients and stock, but not the biz name, KWIM? Is that a possibility, or would that be a silly thing to expect someone to pay for?

[lindsaycb]

Are you really considering getting out of the biz? You've got such rockin' stuff!

[MommaD]

Are you SERIOUS?? No way.

Well, you COULD sell it without the name, I did, but you may not get as much for it. Kwim?

[Scent Cellar]

If I would be thinking of buying a business I would expect to purchase everything .. contacts, formulas, inventory & website. Alot of the purchase price includes the "good will" & probably a non compete clause also. You could sell just off your inventory but you wouldn't capture as many $$ if doing it that way.

[sudsnwicks]

What if you sold to someone who already had a name? Like someone who had a related biz and wanted to expand.

[Spellkast]

No way- nuh uh, not allowed, out of the question- you can NOT sell your biz!!! You have SUCH great products! And if someone as great as you is getting out, what then for the rest of us sorry schmucks?

[islandgirl]

Why do you want to sell....

You have such a great biz and have worked so hard??

You are an inspiration to us!!!!

[daniedb]

Oh my gosh, y'all are so inspiring! I can't tell you how much your words mean to me. Thank you so much for your support and encouragement.

I'm not ready to sell out yet, but I have to say that this business is an incredible strain on my time and energy. With a 2-year-old, and the plan to have more, I'm really trying to prioritize, and honestly, as much as I respect many child care centers, that's just not an option for us - Henry will be going to preschool in the fall, two mornings a week for 2.5 hours each morning, but hopefully by then, we'll be preparing for another baby, so it's not like I'll be able to work all those hours. Here's the list of obstacles that I'm struggling with:

- My house is always a wreck. Always. No, it's not the end of the world, but I have a strong desire for my home to be clean and tidy and welcoming to guests and a comfortable place to be. Right now, I don't have time for that.

- I can't cook dinner, fold laundry, garden, bake, etc., expect for random snippets of time. I really miss that. I love it, and I just want to be a "homemaker" again.

- And the big one.....I don't have insurance. I keep having nightmares that someone sues us and we lose it all. All of it, even the house I can't keep clean. I can't find it, I haven't busted my butt to find it, that's true, but I'm discouraged.

- It takes 3x the amount of time to package and label the stuff to ship that it does to make it, which is the part I love. I know I could hire someone, but I just can't afford that. I spent a few thousand investing in the business, buying 25 pounds of this and 5 gallons of that, so we could maximize our profits, and every penny I make above and beyond supplies goes back to paying that self-loan back.

So...there you have it. At heart, I'm just a mama, and I desperately miss my child. I actually have been praying about this issue for months, literally, and I think there may be a middle ground - I'm thinking about discontinuing selling from my website (which is what takes the majority of my time, making small order and packaging and labeling, y'all know how it is), and go the strictly wholesale route. I've got a great account right now, and a few more on the horizon after I was on the SA Living show...so maybe that will be a good compromise. That way, it's a couple of days of hard work, and then I'm off for a few weeks again.

Thank you again, from the bottom of my heart, for the encouragement, this is such an awesome community.

And to those who answered my questions - thank you. I do understand that part of the value is in the name, and I can't decide if my hesitation to hold on to the name is worth taking less for the biz if I do decide to sell. Thanks for the input and information. My BIL is a CPA, I think I may get him to do a quick and dirty valuation of the biz both ways...we'll see what he comes up with.

sudsnwicks - that's an intriguing idea. I like it. I like it a lot. Know anyone?!

[Marisa]

rethink , rethink!!! LOL THis is probably the best way for you to be at home with kiddies (or hopefully soon to be kiddies)and not have to put them in day care.. I have 3 adn this is my full time job for me and it just is a time management thing on my part, Impan my time out and do stuff during nape s after they are alssp etc...For us its the only way we can go without the daycare.

I agree, you have gotten a lot of exposure with write ups, etc and people are reconginzing your name associated with your product. So If I was gonna buy your company I would definalty want your name , as that is what all your customers recognize

again, this is just conjecture, cause we are not allowing you to do so!!LOL

marisa

[daniedb]

LOL, Marisa. (I'm in love with your lip balm).

The thing is, I'm so blessed that my income (which is nothing) is not necessary for me to stay home...we have a budget that allows me to stay home, without any income on my part, KWIM? I think that's one reason why it's so hard to keep doing it, because it's just a fun thing, a choice, on my part. Does that make sense? If I had to do it to support the family, you can bet your bippy I wouldn't make a peep.

I guess my struggle is - I stay home for a reason, you know? I've been feeling like I literally work at home, a full-time job...while Henry just sits around neglected. A few months ago, I made the decision to quit working while he was awake, I only allow myself to work when he's napping or asleep at night...so that helps a lot, he gets my undivided attention during his waking hours, and I get to do my thing while he's asleep. And whatever I can't handle during those hours, well, I just say sorry, no can do! It's working okay, but I'm just trying to plan ahead for when we add another to the family, in which case, all bets are off, LOL!

[deputy6512]

I totally understand what you are going through. I struggled with this myself a few months ago. Do I quit, do I keep plugging away? My problem was also time. Candle making is NOT my full time job, just something I do on the side. I did make a TINY profit last year, but nothing to write home about. When I started talking about quitting, all of my customers freaked. I felt obligated to them and felt that I would be soo letting them down. So, I too prayed about it, and came up with a compromise. I decided to downsize greatly (going from offering 5 different candle sizes to just one). So, currently I am clearancing all of my current stock, and once all of my tins and jars are gone, they are gone for good. Only going to offer one size after that. This will so help me have more time with my daughter, and household duties. It will be so much easier to keep up with just one size. So, thats my two cents. Try compromising first, then if that doesn't work and you still aren't happy, then sell. Best of Luck to you!!

[Bev]

I may be in the minority here, but here goes. If income is not an issue for you to continue the business, then do what you feel is best at this time for your family. If your heart tells you that you need to be there for Henry and other children that may come along, then follow your heart and be there for them. You will never be able to recover time lost with your family. You are a talented and smart businesswoman and if this time in your life is not right for your business, I am sure there will be a time in the future when it is.

If money is not an issue, perhaps you should not consider selling the business but rather just hang onto it so that you will not have to start over if you choose to redevelop the business in the future.

I truly wish you all the best with whatever decision you make.

[lindsaycb]

Oh, I have struggled with the exact same issue. Its definetly a tough one. I understand the desire for a clean house and well rounded children that are loved from here to the moon. You want to be all that...I think that is what makes you the happiest. Keep bath & body as just a hobby. Try things, play..share with board members. Keep it simple.

[Michi]

Oh Danielle, this has got to be such a struggle for you emotionally.

I too am basically in the same position as you, where I am basically financially able to stay at home with my children without an extra income, which I am sooo grateful for, but there will come a time (not too far out in the future) when my DH will retire (he's quite a bit older than me ) and then we will only have his very very very small retirement plus SSI, which we will NOT be able to live on.

ANyway, I digress, sorry.

I really think that if you love this as a hobby/just for fun, then you should just try downscaling it big time, so you can continue doing what you love, yet still kind of put it on the back burner, so you can put Henry and any other children you may have later on, on the front burner.

It is just hard for me to think that you would give all of this up, after all the positive feedback, and exposure that you've had recently, and just looking at your site and seeing your products, I KNOW that you have a top-notch, gonna go places business.

IAgain I think if you just down scaled (quit trying to make everything and anything LOL) you could find a happy balance, even when other little ones come along.

Ultimately, only YOU can make the decision and decide what is best for YOU and your family.

If you need a sounding board, I'm here for ya sweetie.

[Marisa]

Im glad you like it!! (the lip balm) I Understand, I KNow what you mean.. I can stay at home and dont "really " Need to do this business, but it has become an outlet for me and I can buy all the little extra things I want for the kids with the income. But Im with you.. If it interfered Id do what My heart felt.they are only little for a whisper of a moment. My oldest is in school , myu 4 month old sleeps all the time and my so My 2 1/2 yrd old likes to "HELP" lol me.. so its worked so far. Your business and product look fantastic and something alot of people would kill to have and obtain, but you know what is good for you . but Im sure it would still be a hobby for you and youd stay around here :)HUGS* girl go with whats in your hearts feeling, that is usually whats always the right thing to do.

[mysticglow]

I have to agree with Bev. You should do what you feel is best for your family at this time in your life. Our children are only little for a short while and the time we have to spend with them is irreplaceable. It's wonderful that you earning an income is not an issue for your family. All I can say is to follow your heart and you will know that you have done the right thing.

I've not had the pleasure of using any of your products but I can see that you obviously have a great product line from just looking at your website. It's very impressive. Best of luck to you!

[whiffandsniff]

I agree that you should do what's best for your family. We too are able to live without my income and I'm very grateful for that. I'm allowed to stay home with my 4 year old twin boys and provide for them instead of them attending a daycare center. Not that I have anything wrong with that! I'm actually very lucky that I get to be with them and not worry when they are sick and who's going to take care of them because I have to work.

Anyways, my advice is to do what some etailers do. Some are open for 2 weeks and then closed for 2 weeks. Some are open for a month.. then closed for a month. If you have loyal customers they will understand and still buy from you, because they are willing to wait. From the sounds of it you have a great business going.

Good luck with whatever you do!

[daniedb]

ZOINKS! I just realized that I never responded again, after so many people had taken the time to answer my post. I'm sorry.

I really can't tell you how supported I feel in my journey to discover what I need to make sure my priorities are in order. Knowing that there are so many mothers and other women who understand my dilemma and are so supportive in whatever route I choose is highly encouraging. I literally had tears in my eyes last night when I was reading your responses, and the graciousness and support you had for me during my struggle.

The thing is, when I've had to make difficult decisions in the past, no matter what the emotions and feelings are behind it, when I've made the *right* decision, I always have an overwhelming sense of peace. When I think about continuing, or only doing wholesale, I still feel conflicted and confused. Then, when I seriously consider selling and taking a break for a while from the business aspect, while still able to do it as a hobby, I have that peaceful sense deep down in my spirit. So, I'm going to continue to pray, but I just wanted to tell you how much I appreciate your support and kind words and thoughts. I heart you guys!

[mystical_angel1219]

I think your priorities are valid. Go for what you love, and don't look back.

You can start again, when it comes to your business. You can't go back in time with your family. Being that you are planning on adding additions to your family, you know how hard it is to make time for anything with a newborn. I think your products are fabulous~ however this seems to be a time in your life where other things take presidence. You are a young, vibrant woman with great ideas. There will be a time in your life that you can do all the things you want to do. Being afforded the ability to be a SATM is a beautiful thing. Kids need their mothers, especially when they are young. Call me old fashioned~ LOL. But if I was ever to start a family it would be no other way. Life is precious and short. Money isn't everything. Trust me, I know.

[mountainmadness]

I currently work full-time and make soap (which has become at least a part-time job). We really could live on my husband's income but I really have the drive to have my own business. I have been going at it so hard for the past 1.5 years because I plan on quitting my job in Oct. of 2007. I want to have enough established customers and some good wholesale accounts to not sacrifice the way that we live now.

I used to beat myself up for wanting to own a soap company and still provide a happy, healthy home for my children (I have three under the age of 8). My mother didn't work until I was 16 and I always thought that I had to do the same thing.

I am at the point in my life where I do not feel selfish. I love my children more than anything but there are things that I want and need out of life too. I too, have limited the time that I spend on my stuff when the kids are home. I typically make soap when they are in bed even if I am up until midnight!

So, in a nutshell, I am working 8-5, being the best mom that I can be, and "growing" my business while my kids are sleeping. I will be a full-time soap- maker in Jan. of 2008. I will flex my hours so that I can take my children to school and pick them up.... still attend soccer and hockey games, performances, vacations, and fishing trips...

Being a full-time mom and a business owner are the two things that I was meant to be!

I know what you are going through... follow your heart but make sure that you do not extinguish your dreams.. a happy mother is a better mother!

[candelecandlecompany]

Hey there. I think you must have some awesome products from your huge response to your "selling" issue. I undersatnd that kids and life takes a toll on businesses. I agree with that. But if this is your passion you should stick with it. We have 7 children 16.15,14,8,6, and 21 months old. We have 2 businesses and both hubby and I work outside the home as well. If we can do it I think anyone can. Stay with it and when the kids get bigger they can have fun helping like ours do. Make it a family affair!

[Dipdiva]

I am a single with no children and it's very true they are only little for a short while. I agree with the others that say "follow your heart". I work full time and my business is part time and even for me, it's difficult at times. I've wanted to quit many times! Do what you feel is best for you and your family. Best of luck to you! Keep us posted.

[Guest EMercier]

Well, I don't have kids and I'm not married. So, therefore I must work FT, go to school FT and do this in between. I've been lazy about it, and have recently made it my goal to expand. I prefer wholesale accounts. What if you just did the wholesale accounts and change your website to a wholesale only website or make minimums for online orders? I know it might loose a few, but you'd lose them if you sold. The next person may not give it that special touch you give it. I think that's what my customers like about me. I give it a personal touch. I wanted to quit, but some around me convinced me to stick with it.

You may think he is neglected, but think of all the other mothers that work FT and don't have candles or soap and must go back to work before the kids turn 6 months or 1. I don't think those children are neglected in the least bit. I do feel at times that children left in the home during the day (after a certain age) and not given that opportunity to blend and be with other kids neglects them from learning how to be around other kids. I've seen it many times. I see it with my niece and cousin (they are homeschooled). I think they miss out on other opportunites. This is just all in my opinion. Pray on it.

[The_Dallas_Texas_Dean]

Had to get in here with my thoughts on this.

I have built and sold several businesses. ( I am an old 'un)

I just recently sold another business that I put blood, sweat and tears in to build. (Not to mention 24/7 for 8 years) I LOVED that place!!Of course I had mixed emotions. It took a very short time before the "sad" emotions I experienced from the "loss" were gone as I threw myself into something else.I continue to miss many aspects of it.

I think that the same would be for you. You seem to be a very "driven" person that gives 110% at whatever it is you do. If you sell your business, in a very short time, you would be enveloped into being the BEST mom or whatever you elected to do. You would miss certain aspects, however in this industry you can hold on to the part you really love....you can always pour your candles and make your soap on a much smaller scale to get your "fix" when you need that creative outlet.

I hate to bring it down to this, but I feel that the almighty dollar will answer your question for you.You know what they say, EVERYTHING is for sale for the right price. I say put it on the market. What could it hurt? Without a buyer, you really don't have a decision to make, right?

If you are offered enough money that you can sell it and feel good about it, the decision will be easy. If you can not get the amount of money you believe it to be worth, than the decision again will be easy?

Developing your own business...giving it everything you've got.....makes it much more valuable to you than to someone who has not contributed in the "birthing" process. I am not sure if you have thought about a number.($)...yes, there are people that can come in and assess and do an evaluation, they can gaze through your numbers, but the reality is that you, and only you, know the number...that Magical dollar amount that would allow you to say "SOLD" and feel OK about it inside. Keeping in mind that no one else has the emotional investment in purehenry that you do, be prepared for others to not view your business to be as valuable as you do. Business is business and it is not personal. I know that you know this...I would just not want you to get your feelings hurt or be insulted if someone offered you a price far less than you are expecting.

So, long story short...I say put it on the market, sit back and see what happens. Sometimes you are plesantly surprised at the results and it is easy to "hand over the keys" so to speak.

OH BTW...I'll give ya a $thousand$...and H*** Yes I want the name!

[law]

For a long time, I've looked at photos and read posts, and never had time or felt I could contribute anything of value to the board. But I can speak to you. My husband and I own a mail order firm (not soap), we have worked 30 years together for this business, even when both of us worked other jobs. We had our business sold before 9/11 ended that possibility, but let me tell you what good things the biz did for us. It taught my step-children how to run a business, nuts and bolts things that people living on a salary never have the opportunity to learn. They learned how to balance responsibility, fun and family. They learned success is not always the bottom line. They learned to enjoy a job well done. They learned I was a real person with friends, ideas, desires, not just a one-dimensional Mom waiting on their every whim. It did not make us rich, but it allowed us to be at every play, football game, basketball game they were in. If they were sick, we were able to be at home with them. When our daughter was divorced, we helped raise our grandchildren, rather than send them to day-care. And now that we are growing older, it will allow us to take care of each other and still make a living. I cannot tell you to keep or sell your business. It allowed us to help care for my Dad when he was dying. I can tell you there are many intangible things to consider. And, if I were the buyer, NO WAY would I let you keep the name or logo, and I'd insist on an iron-clad no competition contract for many years.

Lou Ann