Many small business owners’ dreams are to sell their company for a lot of money. What can you do today to make the likelihood of that happening and hit the payday that you want?
On The Small Business Radio this week, I talked to John Vitti, who is a serial entrepreneur who after successfully launching and exiting three companies (at the multimillion dollar level) within the consumer space, is now the CEO of his newest venture called VersusGame, an entertainment prediction-based gaming app that puts trending topics about celebrities, pop culture and sports a classic “this” versus “that” competition. Since its launch in 2019, VersusGame has grown significantly, with millions in cash prizes to millions of players.
John hopes when people start a business their reason isn’t just to sell it because this may not align with helping their customers. But he adds “if you are successful and create value, someone will buy it.”
When starting his businesses, John created value by solving problems that people already have. In his last B2B tech business where companies had huge sales teams, he automated portions of this process to make it more profitable.
To prepare for an exit, John says that it is best to have a “partner eat you”. This means that long before you want to sell your company, you must create relationships with a business you already know for several years.
To get ready, make sure your financials are correct and match your tax returns. John says that selling is not for the faint of heart. He adds that “typical issues are stress, lack of sleep through due diligence, changing deal terms; It’s the worst! I would not wish it on my enemies. It’s like a high school dance, but with a lot of money on the table. Solid relationships with your board and attorney will help when it gets bumpy.”
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Image: John Vitti
More in: Buying or Selling a Business, How to Sell