Luke Battiloro is the founder of Vavoom Vodka, CEO of I Choose To Live, and a serial entrepreneur, neurohacker and genius brand creator.
I have been approached by multiple investors interested in buying—or at the minimum, investing in—my brand Vavoom Vodka. “If you asked me a few years ago if I would have a company worth this much, I may have been hesitant to say yes,” I tell investors.
Truth be told, this company has been my passion project. My goal was to empower women through the statuesque pose of the woman on the vodka bottle reaching overhead, which could be considered a power posture.
While the overwhelming offers kept coming in, I had to think to myself, “Am I done with my dream of empowering women everywhere?” Here's how you can answer the question of whether it's time to sell your own business.
Emotional And Psychological Signs
I would say it's time to sell your company when you do not wake up every morning with the passion and drive to do what you love. I found in business that when I’m doing what I love, it’s not like work. In fact, it's possible to wake up and look forward to doing your work.
When you wake up in the morning and don't feel the motivation to do what you need to do that day, it may be time to move on to other projects. In every market segment that I have worked in or created throughout my life, I have needed a challenge to keep the work from becoming boring. If you are the same way, you might consider trying something different when making money in your market segment becomes too easy.
For example, when I got involved in the online CBD market in 2014 while on dialysis (and got a kidney transplant in the same year), that was a challenge, especially when the cost per acquisition (CPA) for the ads I was running at the time was $876 per sale. The next year came and I had gotten it down to a $47 CPA and increased the value of an average order. At that point, the venture became boring
Knowing when to sell your company on a financial scale or a distribution scale involves identifying when you have reached most of the population that you want to reach. Have you reached the point where you can no longer expand into new regions or gain new customers? For instance, Vavoom Vodka is in 46 states, and since achieving that milestone, my passion has shifted to cancer research and my nonprofit.
Have you run into issues with producing enough materials in the right timeframe? Are you having trouble moving into retail stores with too much online customer demand? In my case, glass can't always be produced quickly enough.
In current times, I'm finding that the alcohol market is just getting bigger and bigger (an observation market forecasts support), and the river is getting wider and wider. Paying attention to the economic signs of your industry is important when you're deciding when to sell your company.
Your Legacy And Other Personal Considerations
Figure out the "rebill," as I like to call it, or the legacy your brand will leave if you sell it now. Also keep in mind whether your company is an intergenerational product—meaning that your parents were involved in the industry or company and you are as well. Whether this is a positive or a negative for you could also factor into your decision to sell.
If you own your own business, you know that sometimes you just need to take that jump. If you have another job, you may start your day there when the current job ends to work on your new passion project or venture. You may go into the wee hours of the night while you're running both businesses. Your sleep may drop to 5-6 hours per night. But enduring the hardships of starting another business can ultimately help make you successful. Focus on the end goal and take it one day at a time. Leverage the growth mindset that Carol Dweck introduced. Continually focus on making an effort and feeling good about your work. In the end, and on the way, this can give you the drive to keep going. Use this feeling to your advantage as you're building your passion for your business; it's one of the great tools I have used in what I call the tool belt for success.