To sell or not to sell?

JbNormandog

SGF, Supreme Grumble Framer
Joined
Apr 8, 2004
Posts
3,751
Loc
NJ
Hi everybody,

I have had a selling slump for nearly 3 weeks.

I have been open about 20 months and have had some growth from one month to the next.

Now for some reason things have dropped off badly. Before I would still have to feed the business every other months or so but now it is just plain dead.

I am thinking of getting out.

How do you go about selling a business, who do you contact to market it?

I'm not sure what I want to do... if this tanks I don't want to look at framing again!

I have been advertising and networking and nothing has really worked. I feel like I'm wasting time and money and thought it only smart to start thinking of an exit strategy.

What do you think?
 
20 months is probably too early to give up.

For what it's worth, when I had a slow time, it was most often early March to mid April. I could never figure out why, but it usually picked up shortly after tax day.
 
That's an awfully important decision to trust to an online forum where NOBODY has a stake in your future.
 
I hear you, JBNorman ... it's been dead, here, too .... we had a so-so January and February .... but since then, ka-ka. We are in a small town outside of Harrisburg, PA, and all of us in this town seem to sink or swim together ... so I look at the down business EVERYONE'S going through here, and realize that we're ALL down ... dunno what's goin' on, but I'd be less than candid if I didn't say that I've had Those Awful Thoughts, too ...

We have some steady stuff, and the feedback we get, as well as things coming in out of the blue, are encouraging, but it's not like we expect.

All I can say is, hang in there ... I suspect there are issues outside of our control that may be influencing what's goin' on (a misguided war and a huge resultant deficit don't help) .... be brave; persevere ... your appeal and the things that brought you business before haven't lessened, ... the quirkiness and angst of the buying public have increased ... we've been here for about 8 years, and have had these times before.
 
Sorry to hear that JB. Things are slow this time of the year almost everywhere, between SpringBreak and people are away / busy with spring cleaning / short vacations, proms or God knows what.

Same thing here, but I can see some life the last 4-5 days, and things are picking up nicely it seems. I really think you should wait a bit more and don't give up yet. Try to use the slow period for store re-organization, cleanup and other things that we never have time for. Or even a short vacation to think things over.

But if you really made up your mind and want to sell, there are commercial business brokers. But be careful, some of them charge up to %12 commission! Do try newspaper ads first under Business Opportunities.

No matter what you decide, I wish you good luck.
 
Have to agree w/ Ron on this one - most new business take anywhere from three to five years to establish themselves. And ever since 9/11 small "unique" businesses have been left at the bottom of the food chain.
Also, with the price increases in gasoline, heating fuel, etc. (especially here in the north-east) a lot of our regular customers have had to let their discretionary funds pay for the necessities of life.
Checking out your website shows me that you have a nice well-rounded product selection. Is your location a "destination" ie: customers seek you out for your products or are you part of a "community" of shops that are all vying for the same discretionary dollars? If so, maybe a change in location should be considered. Perhaps contacting SCORE or your local Chamber of Commerce might help you w/ your future plans. Like Betty stated, it's very hard to get the proper advice from an on-line forum such as this in order to make any serious life-altering decisions.
Whatever you do decide, I know everyone here on TG wishes you the very best.
 
How about another opinion

Contact a Business Broker tomorrow

He will assess your business; might even have a few tips. It's good to have an outsider take a look

And then, what the heck, list it. And,I'm sorry Paul, but the commission paid is more than well worth their expertise, time and effort. It is a veritable certainty that even at 12%, it is worth it when you consider that you might easily undervalue your biz and never undersestimate the headache involved with tire kickers and low ball scammers. I have sold a couple of businesses and I speak with authority on this

Understand that nothing will happen real quickly and if things do turn around mid Apil as Ron suggests, then you can always decline all offers

Just because you list does not force you to take an offer, but if a good one comes along...
 
Do you know how much your business has grown in the last 20 months?

I also looked at your website and you have a more diverse offering than I had in my business and I was located in the most impoverished county in the state of IL. You seem to be centrally located and not too far from the metro areas.

Do you honestly feel that you have done all that you could conceiveably do to get more business in? There are a few things that alot of business people don't think of that have worked for me but they require a bit of legwork and spending a couple of days off in the streets pressing the flesh. I can make some suggestions if you want to email me privately.

I have felt the bottom of the barrel on more than one occasion as have a few other Grumblers here on the forum, we sort of have an unspoken club of sorts, the "Barely Makin' it Through the Week" club. It does get to lookin' pretty bleak sometimes but things WILL pick up as the spring progresses, it always does.

Hey, I toughed it out for the better part of 16 years and it finally took a Cat 3-4 hurricane to close my doors so a little lull in your local business shouldn't be any hill for a stepper! And if I didn't have a pretty good paying position with some really great people working with me now, I would probably consider opening up again now that I am back down here in Florida.

If you have a family to support then things are quite different for you and you need to consider their futures also. And that may be the deciding factor in closing and finding a regular paycheck.

I wish you luck and clarity of mind in making your decision. It will probably be a difficult one if you like framing as I do. It doesn't sound like you do from your one comment but I may have misinterpreted what you said as you being a bit fed up with the situation. It does get frustrating when all your cash goes out the door for advertising that doesn't seem to work and utilities and other bills for a storefront that doesn't seem to be producing anything of worth. I guess it must take a real nut to hang on for as long as some of us do.

Keep us posted on what you decide, eh??

Framerguy
 
I will agree with Bob. Get an assessment from a broker or your CPA. They can help you determine if your business has value at its young age or if you will end up just selling your equipment to get out. They will be your best advice. All we can offer is our experiences.

My business is just in its starting its 4th year, and I know how rough it can feel and the ups and downs you go through mentally, but hang tough if you can. I saw a significant turn in the business by the mid to end of year 3. It ain't easy, but I can't see myself doing anything else except opening more stores! And thats another story!!

Good Luck, look up, not down, all we have is our experiences to share, but it has to be right for you.

Also, I spoke with some merchants here that have been in business 20-30 years, and they said it has been the worst March they have ever seen. I don't think its just your area, I think its across the country.

my 2 cents

Elaine
 
Has the weather turned there yet? Whenever spring hits here we get a big dropoff as people turn their attention from their interiors to their yards and then it recovers for the summer and gets busy busy again late September. It's supposed to snow here today. I expect a good day. The first few weekends that we'll have sun and temps in the higher 50s or 60s I'll hardly see a customer.
 
Originally posted by McPhoto:
Have to agree w/ Ron on this one - most new business take anywhere from three to five years to establish themselves.
Ditto, ditto. We have been open since '99, and how well I remember feeling very discouraged many times. However, it took those first few years to make ourselves known throughout the surrounding area, and then word of mouth became our best marketing tool. We still have slow weeks and months, but I sure am glad we hung in there. :D
 
Thanks everyone,

Betty I just wanted suggestions from others who have been where I am, I know no one has a stake in my shop but as the reponses suggest, there are Grumblers that care and are willing to offer their perspective on the situation.

Thanks to all, for now the plan has been to fight the fight until we win them over but just needed some reasurance that I'm not the only one who has faced this battle.

I mentioned leaving framing because if this doesn't work out I don't think I want to be reminded in someone elses shop that my shop tanked while others are doing great.

Again thanks for the comments and encouragement. Sometimes this forum is like an online hallmark card and it is apreciated.

For the reason that I do try to plan a few steps ahead (just in case) I will track down a broker around here to crunch some numbers. I rather have a buyer and not need one than the other way around.

The reason why I have been thinking more and more about this is that we are expecting our 2nd child in November. My wifes job pays the bills but I would like to be able to add to the household money at some point instead of always being a draw on it.

Have a great day everyone and I will keep you posted.
 
JbNormandog, I'm in a very similar situation to you , minus the baby on the way
faintthud.gif
. My boys are going on 11 and 13, if I had a bun in the oven right now I'd snap like a twig.
Anywho..I'm only 9 months in and I know the trends for busy times vs. slow times in this industry all too well from my previous experiences. I had a horrible 6-7 weeks, all I could do was try and muster the courage to stay positive. I didn't most of the time, but the grumble and good friends are always encouraging.
But the strangest things can happen when you believe. I know in my gut on even the roughest days that this place will be successful, and I hang on to those gut feelings because that is always what has helped me make my best decisions. We had a terrible wind storm here around mid-Feb, most people lost power with temps dropping for 2-4 days. Every since then business has taken a turnaround, I actually might exceed my Dec #'s. Remember it was my first Dec, it was ok for a first. Other businesses had commenteed similar findings. For whatever reason it seemed like our traditional slow time ended because people were so fed up with winter. I wasn't expecting this until April.
Now don't misunderstand me...I'm still in debt upi to my eyeballs, haven't been able to pull my weight at home financially, and still am in a cold sweat most of the time. But I feel like there is hope and I just keep pushing forward.
I swallow a lot of pride these days. I hate not bringing home a paycheck. I have always done what I had to do to make it, and I'm fortunate to have a great support system. But its a terrible feeling knowing I have put so much pressure on someone else.
What I am trying to say is no one can really tell you what to do, though I am glad to hear you are going to keep it up. I couldn't go back to working for another frame shop owner either. Just keep those positive thoughts going and try and stay as focused on the goal at hand as much as possible. (I hope I can practice what I preach) I'll be thinking of you , and best of luck!
 
I wouldn't want to punch out just because of a 3 weak sales slump. You should expect periods of growth and periods of slump. It takes 2-3 or more years to get the ball rolling.

One of the framers I know told me he had the worst April ever last year, but he has been fine since and is busy now. He used to be in an expensive shopping strip and moved to a lower cost location and business went way up. He has a big sign that is visible from the street. When I open, I will have a lighted sign. So at least check you visibility.

For you to give up and pull out is discouraging to me and those who would like to get into the business.
John
 
JB

I don't know much about your experience etc but my first reaction is that if you have been in business for only 20 months it is quite common to have a bad quarter let alone 3 week period. I don't know if you are a start-up or you took over an existing but even when I took over an existing business, it was especially slow going after about 2 years then picked up and now am I ever glad I stuck with it.

Sometimes when we improve our business methods, it takes time for people to appreciate the change at first. You should really sit down for at least 2 days straight examining every aspect of your business & your competitors (not just framers) & have someone look over these things with you. Write down what you are doing right, & not so good. Then get someone to critique it, then make the improvements you need to do.

Hope this helps - I know it did for me.

We're pulling for ya.
 
every year for eight years March-April has been slow. so this year we're taking off most of March and a coupla long weekends n april and letting our part-timer run the joint. So yeah, this time of year is waaay dead for us and, having just come back from a week in Atlanta and touring shops there, they're in the same boat.
 
Originally posted by Mike LeCompte CPF:
every year for eight years March-April has been slow. so this year we're taking off most of March and a coupla long weekends n april and letting our part-timer run the joint.
That's a good advice for those who could really use a vacation or some time-out.

I was worried about being away for a week or so starting next Thursday (for eye surgery). But seeing that things are slow, I am a bit relieved I will not miss much.

And a little vacation always helps to look at things with a better perspective.
 
MIke are you going away...I just want to live vicariously through someones vacation!

OK so I'm a little jealous...its ok that'll be me in a couple of years ;)
 
Norman,

If you can get up to Victory Frame Shop in Lafayette (Thur thru Mon, 10 til 5), I would be glad to show you the things that have worked for me. A frame shop can generate a profit when there is low volume.

Pat :D
 
Norman,
I feel your pain. I had the hardest time adjusting to the roller coaster when I started. I drove people mad because I would be on cloud nine when I had a good day and I would be dragging the floor if I had a bad week. Sometimes it changed hourly, I would be all defeated in the morning and have a whopper sale in the afternoon and be high as a kite. I was confusing my friends and family, none of them know what I am going through. A very smart man(Bob Carter)told me to stop taking them on my emotional roller coaster. If asked how biz is just say "it's going". That has helped a lot, thanks, Dr. Bob. But I also had to convince myself to not freak out on the roller coaster, those emotional highs and lows will kill ya. I try to not be overly concerned at the lows and I definitely don't let myself get on cloud 9 over the highs. I just try to walk a straight line and just don't look down.

If you have had 20 months of some type of growth I would consider that very encouraging. You had to hit a wall sooner or later. Only you will know what is right for you but at least you have the G to commiserate with, if people aren't in biz they just don't understand what you are doing.

Good luck!
 
Wow! A lot of inspiring stories. I am so far out of touch with reality up here that I often think it is just me..no one else could possibly know or understand. The ups and downs are killers.
It does my heart a world of good to know that everyone else is also experiencing a bad March. Not that I wish this on anyone, but at least I now know that its not just me. I tried this and that and all to no avail. I thought it had to be the town..the economy..the fact we are in a tourist area and they haven't got here yet..must be tax time..etc, etc..Truth is I haven't a clue, and the bill collector could care less. I am not a quitter and haven't a clue for an exit strategy. Just don't think that way. I have no idea where to even start on what or how to sell out. So I just keep on keeping on..that's all I know to do. Things will pick up as they always do..! I just try not to think about how much do they need to pick up and for how long before I am back at my starting point before it left off.HA!
 
Some good points are expressed here, and we all want you to succeed, JbN.

I once had a car that needed some work, and I considered selling it. But first, I thought I should do a few tihngs to make it more saleable. By the time I got it fixed up enough to sell, I decided to keep it.

So it may be with a small business. If it is not doing well, it may not sell for a fair price. And if the owner invests the time and money to make it perform enough to attract a buyer, then it may be worth keeping.

JbN, consider what attributes you would look for in a frame shop, if you were a prospective buyer. Does you shop have those attributes? Can you bring some of them into the picture?
 
Steph: went to Atlanta last week and visited friends and various oher frame shops to get new ideas Working this week then next week closing entirely to go to our vacation home in the NC mountains to do some gardening and plant new flower beds with wildflowers. Also some boat work. that'll be it until the summer vacation.

no longer care about most of the business issues. If it flourishes, fine. If not, I sell it and retire early and get on my wife's last nerve
 
Mike,

Enjoy yourself but also watch your back!

My ex has been known to roam around in flower beds and plantings in the Murphy area and there's no telling what she'll do to somebody who appears to have many of the same interests that I have!
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Framerguy
 
Thanks Mike now I'm really jealous. Though I did see the tulips were up yesterday. I transplanted all of my perenials to my boyfriends when we all moved last year, and I can't wait to work on the beds.

I am going to attempt to build two pergolas in the backyard against our fence. I can't wait, I should be able to start in a couple of weeks. Then I can plan what I will plant around them. I might even put in some planters between the 'rafters for hanging vines in the front.
 
Ooooh, planting stuff! Now I'm jealous! But watch out! When my new hips are healed, this Energizer Bunny will be planting again.I'm already drooling on seed catalogs, even though our growing season is short here (stuff will freeze clear into late May!)
My shop has several barrel planters, and a great raised bed with a couple of apple trees and a lot of space begging to be filled. Daffodils are ready to bloom, and I'm gathering seed packets and making a plan.
Plant some seeds for us, Mike!
 
JB, I know this planting stuff sounds like we've gotten off the track, but for me it's also a way to help make my shop more visible and have an ambiance that invites people to come in. In our yard at home, we have strangers stop to take pictures, I'm not stingy with flowers. The kids on our blcok don't know my name, but they call me The Flower Lady" If I can make that happen at the shop, it's a good advertisement that says "this person is creative and probably a pretty nice person". Ever meet a grumpy gardener? Not me! Then I can get them in the door and wooo 'em with framing!
By the way, I keep fresh flowers year-round in the shop. Even the macho guys like them.
 
Framerguy: thanx for the heads up. Actually, we're on Lake Hiwassee, which is 25 or so minutes from Murphy. BUUT I'll be on the lookout for someone who resembles a dancer and has that crazed look in her eyes. COme to think of it, I might ENJOY someone with a little craziness in her. Just like the old days
 
Pat, Thank you for the invite. When I know I will be around there I'll call before I stop by.

This website is the best!

Your posts and emails helped me realize once again I'm not the first person going through this nor am I the only one.

The mailing is ready to go out, some new shop decorations just came in and I will be in better shape to slug it out through the slow times.

I sincerley want to thank you all! Your responses have helped me more than you know! (Thanks Lisa)

Just to fill in some of the blanks, my shop was a startup I didn't takeover an existing one.

Val, I was thinking about getting a bit more color out front with a pair of planters. I was a landscaper for many years so hopefully I can put together a nice display. I have a fountain and huge planter in front already but you can't have too many flowers. (You can see the front of my store at classicframingandgifts.com in the upper left corner)


I had a pretty good Saturday and it helped with the books. It might make it or might not but it will not fail from lack of trying! Thanks again all, I'M STICKING AROUND!

Have a great day!
 
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