Possible to Sell Marketing Agency Making $50 to $60K Annual "Profit"?

Discussion in 'Growing and Managing a Business' started by cody109, May 8, 2019.

  1. cody109

    cody109
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    Possible to Sell Marketing Agency Making $50 to $60K Annual "Profit"?
    I'm wondering what your thoughts are on selling a marketing agency where I'm the only "employee" (I use freelancers for some tasks) that makes $50 to $60K yearly profit (essentially my salary)? Is this big enough to sell?

    I'm also fairly involved since I don't have employees, although it's pretty much maintenance right now for the clients I have (about 10 hours/week of my own time on client work).

    For a bit more detail:

    • The agency focuses on long-form content creation (specifically to rank blog posts in Google) and web design. I work with freelance writers that I've vetted who produce content, I then review it from there (I used to write content myself). I handle most web design now besides any custom development.

    • Last year, sales were $70k with $50k after expenses. In the last 12 months, sales have been $85k with about $60k after expenses. So far this year (up until 5/7/2019), sales have been $31k with $22k after expenses.

    • I have a few notable clients in the SaaS space (this is our biggest target audience) as well as a fairly large e-commerce company and non-profit (one that I quoted $25k for a future project) as clients.
    So back to my question, is a business like this possible to sell (considering the size, revenue, and my current involvement)? What would be the process of selling it? And do you think it is worth it?

    My main reason for wanting to sell is I've become rather bored and would like to focus on other business ventures.

    I'd appreciate any feedback! Thanks in advance!
     
  2. VITS USA

    VITS USA
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    Yes, it is possible, You can focus on startup companies because they search for new clients to grow their company.
     
  3. allcitycleaning

    allcitycleaning
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    I think you could possibly sell your client base to another company that does what you are doing. They can set it up as a subsidiary and slowly move clients over. You are not likely to get much money for it however since your revenue stream is basically your salary. Net profit is basically $0. I would think you might get $5,000 or so for it
     
    • Agree Agree x 1
    #3 allcitycleaning, May 20, 2019
    Last edited by a moderator: May 21, 2019
  4. Brian_Ott

    Brian_Ott
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    I have to agree with @allcitycleaning, your after expenses is basically your personal income and should be treated essentially as an expense. If your client base is really good and you have ongoing revenue generating relationships you might be able to get some money out of it, but valuation is difficult to ascertain without a whole lot more financial information. All of the solo entrepreneurs I've considered buying from grossly overvalued their business.
     

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