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If you went completely passive (let your top employee just be CEO) today, how long will it take to lose all your customers and wind down to $0 revenue? I would

If you went completely passive (let your top employee just be CEO) today, how long will it take to lose all your customers and wind down to $0 revenue? I would just map out how long you think that would take, and forecast all future cash flows by that hypothetical method, and then make your sale price $1 above that amount (discounted). Very simply if this year you net $240k, next year $200k, then $150k, then $50k, then $0 without you lifting a finger, why would you sell for less than the NPV of that $400k?

pesfandiar 10y ago
That makes financial sense, but people's time, sanity and overall health has some utility too. What if OP is simply burnt out?
- cylinder 10y ago
  Well that's why I said go completely passive. Not involved at all beyond getting a dividend payment
  - codegeek 10y ago
    Except that is not that simple when you own the business. You will always be responsible for things at the end of the day and that itself is a big burden.
just_to_ask_sam 10y ago
OP here. I've considered this "passive income" approach, and perhaps am in this right now – I haven't been doing much work on the business, just collecting checks. I often wonder what the value/problem of the upfront cash would be. I feel like I could do big things – but I just can't get over the fact that I wouldn't know what to do with $600-750k in cash, to produce more cash.
- mod 10y ago
  Some people buy businesses that passively generate income for them, so that's a thought. Wait...
  - brianwawok 10y ago
    New app: business swappers