Personal Brands and Exit Plans
Let’s look at two online business owners. Bill and Bob
Bill owns a site that provides a online service called widget X. It’s a site that charges a subscription of $29.95 per month. Customers love using widget X and Bill’s annual profit is $1 million.
Bob runs a very popular blog showing people how to use widgets it improve productivity. All the big widget companies want to advertise on his web site. People love following Bob as he has a in depth understanding of widgets, and his writing style is very approachable and natural. Annually, Bob earns $1 million
Bill and Bob both decide they’ve had enough of the widget business and look to sell. They both talk to a potential buyer called Brian. Brian’s a smart man but only has the cash to buy either Bill or Bobs business.
Who would you rather be, Bill or Bob?
The answer is easy, it’s Bill. Brian can either buy a profitable business that customers love and is contained within an independent brand, or can buy a business where the customers loyalties are attached strongly to the individual who owns the site.
It’s the big downside to entangling your personal brand to your profits. Whilst the day-to-day profits can be fantastic, when it comes to implementing your exit strategy your real businesses value will only be a fraction of what an non-individual specific product or service will be.
Something to think about… that is of course unless you want to work forever.