Should I Sell my Business or get a Manager?

**amhenn** · 04-03-2008 02:55 PM

My Cousin and I started a Poop Scooping business almost a year ago and it has been growing at incredible rates generally about 15-25% per month. We are both graduating college and want to leave the area in about a year. My cousin doesn't want anything to do with it after he leaves. He wants to sell it. This leaves us with the option of selling the business all together or me buying the business from my cousin and hiring a manager while I remain the owner. So the question is, if the company profits about $15,000 Annually today, but is projected to grow to $40,000 by the end of the year should I buy out my cousin for around $6000? Does it ever make sense to hold on to a company that you don't want to be physically present?

**jasaunders** · 04-03-2008 02:57 PM

Wow, that's a shitty business.

(sorry, couldn't resist)

**DPayne** · 04-03-2008 03:03 PM

I say sell it and move on to your next deal in your new area.

**stand856** · 04-03-2008 03:06 PM

or start franchising it, and have designated areas for each franchisee.

**rogercbryan** · 04-03-2008 03:12 PM

What area are you in? Are you going to stay active in the day to day operations of the business? Where are you getting your financial projections from? How much would you be willing to pay a manager? It sounds like on your margins that you need to step in and do everything. If you plan in growing the company that may be your only option.

With out knowing a lot more about your business I would say that $6000 isn't to far off for 50% of a company making $15,000 a year. This is a very generic statement with out seeing your balance sheet and cash flow statement. Be realistic about what it would take to make the company work after your partner is gone. That should be a bigger concern then the amount of money you have to pay him....

If you are not in for the day to day... I would run the other way... damn... I'm a poet and didn't know it...

**amhenn** · 04-03-2008 03:21 PM

I would not be taking part in the day to day runnings of the business after the next year. We have very minimal expenses and no assets, so the business is just labor. Is there any value in holding onto a company as the owner while giving most of your profits to the manager/employees while the business grows? So essentially I wouldn't make much direct profit, but the value of the overall company would grow with little work on my part. Is it worth holding onto the company for the future value assuming it will grow by 100% in the year following my departure from day to day activities?