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simicrintz

Anyone know how to scale a business?

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I have a pretty unique business that I started 10 years ago.  It really did not exist before I started it (some tried but did not last long and are now gone).  We have done a pretty good job on limited funds and have a few good sized opportunities in front of us with major companies and in an application that has not been done before.  It could easily be applied world wide.

As I approach 60, I am starting to think about an exit plan (work-not life!).  I watch a lot of you guys getting out and riding mid-week and see the "retired" word tossed about, and I am honestly envious.  I am not wired to fully stop working, and I enjoy what I do, but I am thinking towards the future and I would like to be able to do more stuff and not work as much.  Truth is that I have no idea how to go about this.

If you guys were in my place, what would you do?  A lot of my friends retired from the PD or Fire; I don't have anything like that.  My opportunity is that if I can build my company up to something that could be sold it could be a game changer in my industry; I'm just not sure that I can visualize that end point.  We are well respected for what we do, get a fair amount of press in the industry since we are the only ones who have pulled this off, and are debt free.  I own 90% of the company and have a 10% partner in Phoenix.  No building to pay for, no vehicle or equipment payments, and no obligations that are holding us back.

I really don't know who to reach out to (I have tried SCORE several times in the past but have not had much luck) so I thought I would throw this out here.  I gotta think some of you guys have "been there, done that" and may be able to offer some input.

Thank you in advance!

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I think I know what service you are referring to and think that it might make a good franchise opportunity. Franchise it out by region. Once it's up and running and you have a few franchisees, consider selling your portion for a lump some and continued residuals for the rest of your life. That way you have a check coming in.

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Thank you, LB.  Since we are currently in 5 states, franchise law gets sticky and expensive.  I have looked into it a little bit and it also adds expense, which pushes the price of entry past what many seem to be able to afford (I typically show an 18 month ROI in the current model, so it is not that bad).  It is on my radar to learn more about, but as a "little guy" myself who is hesitant to take on much debt at this age, I have to be selective.

That said, it may just be sheer ignorance and lack of understanding that has me feeling this way; you may be right on!  Definitely something that I need to learn more about; thank you!

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I’d be willing to talk to you. I sold my business to a private equity firm from Chicago so I have a little experience in the exit strategy. 

 

CiD

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Bruce,

Good Luck with the venture.  CID knows People who know people.  We will tell Kendall's to add another chair at the table.

Dave

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1 hour ago, Covered in Dust said:

I’d be willing to talk to you. I sold my business to a private equity firm from Chicago so I have a little experience in the exit strategy. 

 

CiD

Thank you, Chris; much appreciated.  I have your number and I think you have mine; looking forward to it and much appreciated!

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1 hour ago, Bagstr said:

Bruce,

We will tell Kendall's to add another chair at the table.

Dave

That made me smile; thank you Dave!

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We have a small niche business, we keep it as an steady income with not much effort to keep it running. is not to make a living on, but helps to pay the bills. good luck with you planes.

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Try to get on Shark Tank! 

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Sounds like you need to get into talks with your minority partner......more investment/energy on that end........less stress/more free time on your end.......

Likewise, coming off our 60th BDays the retirement needle is moving left for me and my wife........doubt we'll be working full time beyond a couple/three years

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Mine (in its current state) is a bit labor intensive for about an hour, Udo.  The day to day part of that is not too tough (if that was all I was doing I would be home by noon everyday!).  This thing has taken a whole new direction that we never anticipated in the beginning, which shows me the potential.  We're in talks with a major hotel chain and with a large waterpark company, and if they show more than the interest that they are showing currently this could take off.  If I sold once it got to that level I would probably try to stay on in some limited capacity for something to do (and see how long that would last!).

I don't think it scales well enough for them, Ken.  And I've never seen much more than the "turn and burn" goods on there; they seem to be more interested in good margins but more importantly quick turnover and volume.  I'm just not sure that this fits that bill (and I have a face better suited for radio than TV anyway!).

The minority partner is 16 years younger than me, and is mostly my marketing guy, Chris.  Back when I started I was convinced that I needed a social media presence and he offered that.  We had no money and made an agreement that if he did X amount of work a month promoting us for 2 years that we would grant him 10% ownership.  He is a huge help on a lot of fronts, and he has taken on different roles from what we initially had in mind (I sent him to PA about 6 weeks ago for a site visit-completely out of his comfort zone-and he did a great job).  I don't think that there is any dough there to be had from him.  It's just the two of us at this point, and we do share responsibilities wherever possible.  The long distance relationship does not allow me to get any help with the labor stuff (which is not his strong suit anyway) but it works overall.

I never really saw myself as retiring, which may have been part of the problem.  As that needle swings, and I see my life blocks of ten years (I have always broken my life down in blocks of ten, and for a long time it seemed as if I had lots of blocks; those blocks are getting smaller now!) I wonder what I'll be able to do in the next block and what I won't. I don't want to sit at the pond and feed the ducks!

I appreciate all of the input and different points of view.  Life would be so much easier if I could figure it out!

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Umm interesting position your in Bruce, sounds like at a major pivoting point but don't know the final direction or which road to take at an unseen crossroads. Text or call me if your interested in another partner who can help with southern county day to day along with personal financial backing

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Thank you, Brian.  The funny thing is that we are still in the growth stage (ten years later) and to some extent still bootstrapping (doesn't help that I'm a cheap SOB!).  But when major companies come calling it plays games with your head and you question everything; sometimes it seems as if we went from Little League straight to the World Series.  I just had not anticipated the direction this has taken and I feel somewhat unprepared and maybe even out of my capabilities to take it to this next level.  I think that my greatest fear is not being able to properly execute the opportunity that I have been given.

I've had businesses before but never one that didn't really exist before.  I'm just a high school graduate and have had no training for this; I guess that is the challenge in a nutshell.

 Thank you again.  I have your number; I'll keep you posted!

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