I've seen family members achieve financial independence time and again a building a business and selling out to pull out the equity.
But I think there is an argument to be made to keep the business and live off the cash flow.
Take the cleaning industry...
Its low tech
Recession resistant
Repeat customers
Longer term contracts
Semi absentee ownership
If proper systems are implemented from the outset, a 20% profit margin is attainable.
Business Idea
Re: Business Idea
I’ve known some business people in the restaurant industry who just set up places, operated them and then sold them off. Then they’d repeat. They’d tell me the profitability was low till you took into account selling out. I met the new owners of their places and they’d be pissed off the original owner opened up a place just like the old one a mile down the road. Same recipes.
I can see now that building up a loyal clientele as actually building equity. The cleaning business seems similar since there is a lot of trust involved. Unless selling your trustworthiness is your strength maybe it’s better to hold on and operate the same one. My neighbors all use these franchises like “Molly Maids” these days. Perhaps that’s a way to sell out without selling out.
I guess it all depends. I’m leery of any business for sale.
I can see now that building up a loyal clientele as actually building equity. The cleaning business seems similar since there is a lot of trust involved. Unless selling your trustworthiness is your strength maybe it’s better to hold on and operate the same one. My neighbors all use these franchises like “Molly Maids” these days. Perhaps that’s a way to sell out without selling out.
I guess it all depends. I’m leery of any business for sale.