Million dollar potential??
Where are my SMB peeps? This one’s for you:
Went over to the house of a family friend selling his business today.
I won’t say specifically the business, but it’s a product that has been and can be widely used in logistics and even construction.
Simple and useful product
He ran it as a side business for years.
Grossed $250k at the most just causally.
Zero marketing
Old website
Turning down customers
2 trade shows a year was his only outreach.
He has a list of clients that have wanted to use it but he’s recovering from health issues and pretty much shut it down a year ago.
Currently— zero cash flow
Potential— I think this could be a very substantial business. So does he of course.
BUT
It’s making nothing now.
He has inventory and is confident he can sell it in a flash when he “turns it on again”.
How would you go about valuing this?
Based on yours or his valuation what’s your deal structure look like?
I have thoughts, but I figured I’d throw this out to the public forum.