I am not an accountant. I’m not an MBA. And I’m definitely not a business broker. So when it comes to putting Movies for Mommies Vancouver up for sale, I was feeling a bit out of my depth to begin. Of course I have a sense of what it’s worth, what my earnings are, etc. But the whole business of selling it was a bit foreign to me.
So okay, I sought advice. And I got great advice. Did you know that businesses are generally sold for three to five times earnings (income less expenses)? That made things easy to price, at least on my end. But I operate MFM Vancouver on a license from MFM national, which means there’s also the license fee to consider. Sure, someone could buy my business and run it as something other than MFM, but head office would likely sue you, so it would be better all around if the buyer also became the new licensee for the brand. But okay, I negotiated with head office and got a good price on the license fees to make buying my business and the license affordable.
Then I needed to pull together the paperwork. I keep my own books, but I do a good job, so I pulled together the financials. And the publicity and marketing, because a buyer would want to see all that. Now I had a package about the business. So I also did up a two-page summary of what running MFM Vancouver is like, added my selling price, and PDFed it.
Now the hard part — spreading the word. One of the reasons I’m selling is that I haven’t really had time enough to spend on MFM, but in order to find a buyer, I have to spend time getting word out. Catch 22, huh? So I’m using email, twitter, my e-newsletter, Facebook, and even this blog to get news out about the sale. I still think the new buyer will probably be a mommie who has experienced how great MFM can be and who wants a part-time business that fits with the lifestyle of being a mom. So I’m starting there to pass along word.
Will I find a buyer? I hope so, because I’m really attached to MFM Vancouver and would hate to see it shut down. But I have to give myself a deadline, after which point I just have to stop. So if you know someone who might be interested, have them contact me.
Better yet, download this file and pass it along. It’s my two page summary.
This may not be the most conventional way to find a buyer for a business, but hopefully the mommie network will come through and a buyer will come out of the woodwork.