The process of selling a business and discovering what is valuable to buyers has been an incredible learning experience for me and Frank who bought the business is a great guy (interview below). Out of the 20+ buyers who paid the deposit to see the site, Frank was the one I wanted to take on the business and I was happy when we agreed on a price.
It’s given me the confidence and mindset to realise that the only difference between creating a $300/m, $3k/m or $30k/m online business is ability to scale in your chosen niche, i.e. the right traffic to the right funnel.
Knowing that I’m able to build something in a way (through SOPs) that is valuable for someone else to purchase has been a game changer.
Rather than hustling for the rest of my life I now have the mindset and ability to build and sell businesses to achieve my financial goal.
I’ve recently been going deep learning about the world of investing, reading as much great content as possible from people such as local Brit Siam Kidd of The Realistic Trader as well as listening to the awesome podcast Invest Like A Boss.
I’ve worked out that my top line financial goal is a million USD (which is almost the same as GBP now anyway) in net worth before I’m 40 (I just turned 37) and have the option of being able to retire by investing it. A conservative return of just 5% would generate over $4k/m to live on completely passively for the rest of my life without dipping into capital.
To achieve this my plan is to sell funnelengine.com and then work on a big, branded website in the health and fitness space which will be a combination of affiliate marketing and ecommerce for a high six figure exit.
This is obviously a big lofty goal but I believe it is totally achievable within 3 years even if it’s more likely to take 5 years. If $1MM seems crazy to you, let’s break it down into something more tangible.
HOW TO BUY A PORSCHE
I want a brand new Porsche 911 which starts at $89,400 – this is going to be a gift for achieving my financial goal. But assume your goal was simply to own a new 911 asap. How would you do this?
Selling a shopify store on empire flippers typically get around 26x monthly profit so you’d need to get an online business to $3450/m in profit with a track record of 12 months.
That’s less than $150 in earnings a day. If you’re selling $70 products and making $30 net profit a sale that’s just 4 sales a day.
Assume a 1% conversion rate and you need to direct 400 targeted people a day to your site / sales page. Write and promote content, setup facebook ads, see if adwords is profitable, reach out to sites with relevant audiences: find a couple of channels that work and turn on the gas.
To sign off, below is a google hangout I did with the new buyer one month after the sale – the connection drops a few times but it’s a fun chat.