Madeline owned a company that provided two service lines. One service line was very profitable and generated a great revenue with high profit margins. The second service line also generated great revenue, with a lower, yet still high profit margins and was very time consuming.
After looking at the time required to provide the second service line Madeline decided to sell the second service line.
Why? That second service line generated approximately $45.00 an hour and required approximately 20 hours every week to deliver. The first service line generated approximately $95.00 an hour.
Madeline was able to spend 10 additional hours providing the $95.00 an hour service line, work 10 hours a week less and still generate an additional $50.00 a week in revenue.
$50.00 a week may not sound like much but if you could earn an extra $2,600.00 a year AND get back 520 hours of your life, wouldn’t you?
What if Madeline spent the full 20 hours offering the first service line? She makes an additional $1,000.00 each week ($352,000.00 a year) IN THE SAME AMOUNT OF TIME!
Bonus: She also made $75,000.00 from the sale!
What products or service lines have you developed that either generate a lower profit and / or take more of your time? Maybe it’s time to sell them and focus on your most profitable least time-consuming products and services.
I should mention that Madeline like most business owners never imagined that she could sell a portion of her business. Quite honestly, she didn’t think she even had something of value to sell. Which I’ve found to be a common belief amongst small business owners.
The truth is that she did, and you may too. We tend to think that in order to have value or to sell a business we must have real estate, equipment or other tangible assets to sell.
Do you have a book of business? Repeat customers? A website? A long-standing phone number? Social media accounts? Systems? Documented processes?
If the answer is yes then you may have the opportunity to package all of those assets and sell them as a business just like Madeline did.
Sell a portion of your business:
- Generate more revenue in less time
- Focus more time on your business
- Gain larger revenue from the sale