Tropii Company

Tropii Company

Tropii Company is a South Florida based business that sells high quality straw sun hats with unique designs under the brim. The hats have been UV tested and rated at 50+.

In South Florida, everyone includes a sun hat in their beach accessories or even while working around in the yard. They are highly sought after and with the right owner this business can go very far.
Tropii Company is currently stocked in 28 stores throughout the South Florida region as well as being sold online.

Tropii has been widely successful on their eCommerce platform (Shopify) having sold out of their most popular designs. They have been the featured product at festivals such as SunFest and multiple sporting events where they have been able to do up to $7,500 in sales over a single event. In a very short amount of time they were able to grow our Instagram page to over 1,200 followers with the majority of sales coming through organic social media.

Tropii Company’s average order value is $43.

Tell us a little about you, why did you start Tropii Company?

Starting back in early 2018, we purchased the company from a friend who originally started the company with just two designs and was ready to sell so that he could move across country.  We saw a huge opportunity in what he had created. We took his two designs and quickly added five new ones. We signed with a manufacturer based in China and almost immediately began selling online and at festivals.

When we first started out, we had over 2,000 hats in inventory as part of the purchase. With no money for marketing or development, we were able to make $4,500 in just two days at a festival and prove that this concept had wings. From there we further developed the line, sometimes using our social media network to crowdsource design concepts so that we have proof of concept before going into production.

We’ve also recognized over the past year that there is a huge opportunity for collaborations on the designs with local charities, athletic events or teams, or even social media influencers. Schools and clubs need these sorts of hats for their festival gatherings in the summers and would love to have custom designs made for them. We’ve even  run programs with a local sea life conservation organization that was incredibly successful.

While there are of course other companies that sell straw hats, there are few and far between that are making them as fashionable, custom, and appealing as Tropii Company is, giving us a huge edge on a large market.

Where are the majority of your customers coming from?

Instagram. We don’t pay for any advertising, so all of our traffic is purely organic – be it through instagram or real life events. Instagram’s Shopify integrated analytics tell us that 92% of our sales are coming straight from that platform, purely through organic posts or our customers sharing images, hashtags, and links to our site. There would be a huge opportunity for a new owner with a better understanding of Facebook advertising to retarget to our organic following.

Offline, we have found great success any time that we set up our booth at a festival, typically generating the longest line of any other product on the premises. We have had no problem getting Crossfit athletes, judges, and other festival participants to wear our hats at the event, showcasing the product essentially free of cost to us outside of the cost of the product itself.

Where are the Tropii Company hats manufactured?

Manufacturing is one of the most difficult parts of the process. Finding the right manufacturer that you feel comfortable with and can communicate with is important. We found one in China after interviewing with several and for anyone who is coming in to take over and purchase the business, everything is already in place. If you like the designs, you can keep them, if you want new ones, go for it. We’ll put you in touch with the manufacturers and help guide you through the process to be sure that everything runs smoothly.

We’re really excited to answer questions and make sure that whomever takes over is fully clued in on how the process works so that they can run with it.

How much time is spent on the business?

Currently, we’re only spending about 10-12 hours each week between fulfilling orders, visiting shops for potential B2B sales and creating content. Content is probably the biggest time consumer as it takes a lot more time than you might imagine to build a portfolio of high quality images and videos. As the majority of our sales at the moment are coming through Instagram, it has been important for us to be sure we have high quality content to help drive traffic.

The other time consuming factor is order fulfillment, but if someone wanted to take this company and drive it towards a drop shipping model, it can be handled pretty much through automation.

Who would be best to take over this business?

This business would be perfect for a college aged buyer looking for a first step into the world of eCommercce and fashion or for someone who is a people person with the time to network and create more B2B sales. It’s also perfect for people who are awesome at social media and love being outdoors. With the right time given to the business the social media could flourish!

People absolutely love these hats and it’s a little sad that we have to let it go but it taught us a lot about starting and running a business. We’ve made so many contacts and met amazing people. It’s crazy to see the result of our work. We walk on the beach and see a hat or we show up to events and people know the brand. It’ll make a great business that can totally be expanded with the right effort put into it.

The business has plenty of growth opportunities:

  • Unlimited opportunity to grow the wholesale side of the business. We already have many contacts here in Florida who have sold our products in their stores and they would like to continue selling.
  • Unlimited potential to collaborate with other companies and brands. We have had an incredible amount of interest in making custom hats for other companies and organizations. This would be a new revenue stream!
  • Selling from a tent and booth at large events such as music festivals, CrossFit competitions, and pretty much any other event that is outdoors and offers spots for vendors to sell. This is a great way to get exposure and make a good amount of money in one day. On average we made $3000 – $4500 per day at any event. We are including all the booth equipment.

WPSchoolPress is a WordPress plugin for School Management.

Approved on since January 2019, the plugin is available on a freemium model, the users need to pay on for the add-ons that enhance the plugin features. 

  • Plugin downloaded 30,000+ times ~100 new ones per day
  • Database with 22k+ user contacts
  • Global customer base – users from 132 countries 
  • Niche market with little competitors

Currently, there are 5 Add-Ons that can be purchased individually $30 each and a Bundle pack of $135 for all of them.

  • 31% of the sales go on the purchase of the Bundle option
  • The most sold after the bundle is the “Import Export” add-on
  • Users purchase a lifetime license to use the add-ons and included is one year of product updates
  • After 12 months, users need to purchase again to get the updates for another year

Two more Add-ons are in the development process

  • Payments Add-On – Test stage. once launched, it will be sold for $50 and the bundle price will increase to $150.
  • Grade card Add-On – 1st version, 70% completed.

Tell us a little about you, how did you develop WPSchoolPress?

After building my web agency, JD SoftTech both in Boston, USA, and Ahmedabad, India, I wanted to find a way to help other agencies.So, we took our team of highly qualified website developers and web designers and launched UnlimitedWP, a white-label WordPress partner for growing agencies.

Along the way of building our web agency which has morphed into UnlimitedWP, we also worked on creating and supporting our in-house software products. One of which is WPSchoolPress, a plugin in for WordPress CMS which has 60% of the market share. Our plugin adds an entire school management system into the website’s backend.

What has been the evolution of this site since launch? 

The plugin and its website were originally established in 2015 by a different person with the strategy to only offer a paid version. The website quickly ranked on the top of Google searches and got a decent number of visitors. As the previous owner had a full-time job and thought they were not able to take full advantage of the plugin’s popularity it got in a short time, they decided to sell it in 2017. 

Due to work commitment, we did not do anything on the plug-in for one year. During that time we received up to 10 emails per day from people showing their interest in the plugin.

In 2018 we decided offering the plug-in for free and then paid add-ons to expand its functionality. We spent 6 months with extensive work and testing on the plugin, updating to the required WordPress standard to add it to their repository; our aim was to get a large number of downloads, so WordPress websites could install our plugin with one click. The updates involved stability and a more modern design.

On Jan 1st, 2019, we finally got the free version of the plugin released on We immediately got success getting ~50 daily downloads. The next step was to create paid add-ons. Since June 2019 we released 5. Currently we have nearly completed 2 more add-ons to be released in early 2020. 

Along the way, we have collected over 22,000 emails from people who download our free version. 

The third phase of our strategy is monetizing from our large community base and start marketing to grow revenue to even higher numbers.

This plugin has been a side project for our agency. Our cost to run this plugin was $450 per month (the salary of one person in India) to develop, manage, and communicate with users. The person who was doing this has just left to study aboard and now we need to hire another person. Meanwhile, as one of our other software products has seen great success and we are considering selling this plugin to focus 100% on that product. We believe that WPSchoolPress is very near to unleash its full potential and make hefty cash without much effort to run the business. 

What is the business model? What are the current revenue streams?

We offer a free school management system plug-in on our website WPSchoolPress for WordPress CMS. It offers full functionality to a WordPress website back-end for a school to run their operations. 

We offer paid add-ons to expand the features and functionality, e.g. bulk import/export, SMS, assign one student to multiple classes, front-end student self-registration form, etc. 

These add-ons can either be purchased individually or together with a bundle. We issue an API key that user needs to add to their website in order for the add-on to work. Users get free updates to their purchased add-on for the period of one year. After that, they are free to use the add-on, but they need to pay again if they like new updates. The API key system we have in place ensures that add-on copy can be used only on one website.

Our goal is to reach out to as many people as possible with the free version. Though add-on sale has started recently, 4% of the active plug-in users are coming back to purchase add-ons. 33% of those users are going for the bundle pack.     

What does someone need to do to continue operating the business in its current Form?

  • Emails – normally customization or some partnership requests. 
  • Respond to the support system added on the backend of the website where paid users can raise a ticket if they have a question.
  • Get back to users via the live chat installed on the site. 
  • Whenever there is a WordPress update, checking plug-in for updates, normally there is none. Once or twice a year there may be small changes requiring a few hours of work.

Can you list a few opportunities to Grow for a prospective buyer?

  1. Start using the large list of 22,000 contacts to market paid add-ons.


  2. Run a poll among the contact list to see what other features are mostly needed to create paid add-on for it. Typical add-on development takes 1-2 months. But then that add-on is sold forever.


  3. There is a lot of interest in the FB page. Just active posting there can help to make community big.


  4. There are many people who reached out to us and offer to help as they are interested in the potential of the plug-in and they have experience in the educational field.


  5. Half of our traffic is from other web agencies/developers who are building a school management system on behalf of the schools. A school hiring a web developer to build website and web developer using WPSchoolPress. There is a great opportunity in building a relationship with this developer to even promote more. It is very common in the WordPress ecosystem for a plug-in to offer “developer license” which basically grants multiple website use of the paid add-on license. The market rate for such a developer license for WPSchoolPress will be $300-$500. We do want to offer this, but we were planning to do it in 2020. Many premium plug-ins like WPSchoolPress have this option, we just haven’t launched it. All the work needed for that is already done.


  6. WordPress is a very large community and helping one at that. There are many WordPress high traffic blogs and they would love to write about a plug-in that is helping schools. This can have a significant impact on the traffic and hence increasing download rates.
  7. Customization work: We receive very regular customization requests. I would say over 200 in 2019. From that data, we know what the most requested customization work is. We have created a list of 10 items. We were going to create an add-on so plugin users can customize those areas. The next owner should do it, it will be a big hit and you can expect a lot of people to use the plugin. Meaning they will need other add-ons too and unlimitedly 30% of people decide to go with a bundle pack of $130.
    Apart from this add-on for customization. The new owner can also offer another deep customization for a one-time project cost. In fact, we have done it last year.


  8. Payment integration add-on: We are building an add-on to integrate WPSchoolPress with WooCommerce. This one is a big one as we have received tons and tons of requests to add a payment system in the plugin. We thought it would be better to connect the school’s classes as products in WooCommerce. That way people can use any payment gateway they like as oppose us building integration with different payment gateways. WooCommerce works with 100’s of payment gateway around the world. Given our World exposure, this will allow all schools to collect payments from the parents. Nearly all work is completed with integration. On the final testing before launching that much-awaited add-on, we found one scenario that needs some work. We haven’t been able to work on it yet, so we did not launch the add-on yet.


  9. Results add-on: With this add-on, schools will be able to generate results/grade cards for the student. It will auto-populate exam scores from students’ data. Initial work on the add-on just completed in Nov. We have not begun testing yet.


  10. We do have other 5 new paid add-on ideas prepared. Such as online examination, LMS extension, customization add-on, etc.


  11. Offer to build a website along with the plug-in – The schools who are looking for the plug-in is also looking for website many times. We wanted to take highly rates premium WordPress theme like Astra theme along with a page builder like Beaver Builder and integrate WPSchoolPress plug-in deeply in it. This way we can sell a packaged hosted website with the entire school management system pre-built in it on a monthly subscription-based to schools. We already have heavy traffic and a web presence that it would be a good product to sell it.  To build something like that would take 1-2 months. With monthly subscription-based, a new owner can build a good side business using the same plug-in. It does not have to be a monthly subscription; it can be sold as package priced – of course, it will be over $1,000 with maintenance fees.


  12. Not all of our traffic and users are schools. We have so many users who are not schools but have a similar structure as schools. For example, gyms like to use it to create gym classes and have their gym members sign up on those classes. Schedule, attendance, grade report, etc. can be managed on it. Coaching institutions are also interested as they have similar structures as schools. Other teaching programs like yoga classes, certification courses, language centers, and much more similar businesses can also us our plug-in and infect they do. We can create a landing page on the website for different industries. Given Google ranking, we can rank high for keywords like WordPress yoga class management plug-in, gym management WordPress plug-in, etc to get additional traffic and downloads.


  13. Learning management system: Our plug-in is a school management plug-in, but we can do an add-on to add a learning management system (LMS). LMS are highly popular as they are needed for many industries. It is basically adding a page for each class to add assignments, notes, material to download, notes, discussions etc by the students who are on those classes. This is asked by many of our users and highly needed add-on to release down the line. 

How have you marketed the product and where are your customers originating from?

We have not done any direct marketing yet. Here is what we did so far,

  • 2018 we revamped plugin both in terms of code and design. This was the preparation to submit the plugin in plugin directory. We were going for the fermium model-free plugin and then paid add-ons to extend features. The plugin was approved in Jan 2019. 
  • We created an online demo and ask to enter an email to see it. I would say about 50% of people who downloaded the free plugin, come to the website first to see the demo. From there we have collected 22,000 contacts (we recently cleaned the list to make sure they are all real users).
  • For marketing, this list is huge and nicely organized in the marketing system (we use Mautic, a popular open-source software installed on our server ready to be used). We may have sent 5 emails to users so far. We really haven’t started to monetize from the list we have.
  • We have created a YouTube channel and uploaded I think about 10 videos that get decent views from users. This an area to be worked more to get more users in the WPSchoolPress community.
  • We rank on the first page with on-page SEO we had done a while ago on the website for all relevant keywords which bring a lot of organic traffic daily.
  • We are not active on the FB page where we should have been.
  • We did create a blog on our site and posted two blogs in the last 2 months.

How does the business currently acquire customers and what is your breakdown for marketing costs?

We have just been fortunate to get first-page rank, high interest in the plugin in general, high download rate, low competition. So far, we have just been banking on that as our primary focus was not marketing but keep building more add-ons. We were getting a high download rate, so we wanted to focus on building add-ons in the last 6 months rather than any marketing. And meanwhile, grow the community around our plugin so down the line, we sell our add-ons to them.

Apart from building new add-ons, none of the things cost anything to us to acquire new customers. The first-page rank brings us free traffic and users. Also, plugin being free in means it attracts additional thousands of views each day. It also helps that we are the only plug-in in the entire plugin directory. Early entry in the market is clearly paying off. More and more schools are going to want to digitalize their operations and we stand to rip the benefit of it. Therefore, it was more imperative for us to build paid add-on to expand the feature set of plugins than to market as anyways we were having more than decent incoming free traffic. 

What marketing channels are most profitable for the business?

  1. Organic traffic
  2. plug-in directory

How many people does it take to run this business?

Just one person with WordPress development experience can easily manage the entire business. is an eLearning marketplace that brings together the best features of Udemy, Skillshare,
and Fiverr into one platform for online courses, private label rights, memberships, and services where
instructors enjoy full control over pricing and access to affiliate commissions!

With just ten months since inception, Uthena is generating a monthly revenue of $2.8k+ on average and
has a base of 22k+ users that signed up. Moreover, there are 74 approved instructors and 18,575 videos
uploaded on the platform.

Why did you start Jerry?

Here is the summary: I have created over 100 online courses which have sold for millions of dollars online with Udemy being the number one place my courses have sold. In 2016, Udemy took down my profile despite me not having any policy existing policy violations which eliminated almost all of my income. I struggled for years to get back on me feet with me own self-hosting and using other platforms like Skillshare. One day I realized there was no website offering the best of what Udemy provides (a marketplace) and the benefits of self-hosting (freedom overpricing, control over content). My vision in launching Uthena has been to provide a complimentary platform where online instructors get the best of Udemy and self-hosting in one place for free without fear of being banned and the ability to earn as an affiliate with full control over students and pricing.

How does this business make money? What are the current revenue streams? makes money by selling online courses, bundles of online courses, services, Private Label Rights (PLR), memberships, and services. I set out to prove all of this was possible on one marketplace and have sold everything from $9 courses to $2000+ coaching on within the first year. Most existing revenue comes in from social media, direct traffic, and google organic search via the hundreds of videos I uploaded this year to YouTube and Facebook offering free course previews which then sell courses on Uthena combined with word out of mouth marketing.

Who are your customers? makes money by selling online courses, bundles of online courses, services, Private Label Rights (PLR), memberships, and services. I set out to prove all of this was possible on one marketplace and have sold everything from $9 courses to $2000+ coaching on within the first year. Most existing revenue comes in from social media, direct traffic, and google organic search via the hundreds of videos I uploaded this year to YouTube and Facebook offering free course previews which then sell courses on Uthena combined with word out of mouth marketing.

Which product is most popular?

Our top seller has been our “Ethical Hacking Forever Bundle” as seen at which was sold almost entirely by uploading free previews of our hacking courses onto YouTube which then say to take the full course on Uthena.

How much time does this take as an owner-operated business?

To maintain Uthena only requires about 5 hours a week to just review new instructor applications and provide customer service. Where I have been focusing most of the year is growing Uthena which takes as much time as one can invest. For growth, at least 40 hours a week is ideal to edit landing pages, test new courses in ads, render several video lectures into one long preview video for YouTube, upload/publish to YouTube, test ads for individual YouTube videos, analyze data to see what is working the best, and share free coupon links to attract new students.

Considering this is a business with such potential, why are you selling it now?

As a husband, father of two young children, YouTuber, online course creator, live streamer, podcaster, blogger, author, speaker, and member of recovery, I thought I would make a great startup founder especially after years of requests from followers online to make my own Udemy. In February 2019, I launched Uthena in honor of the goddess Athena and began splitting my time between being a content creator and startup founder. Some months I made everything about Uthena while others I focused more on courses and YouTube. The result has been a high level of stress, a constant feeling that I cannot work enough, and daily disappointment with the results everywhere. With many morning meditations praying for peace, I finally saw a way out by making a decision to either be a content creator or a startup founder. While I have a gift for speaking, teaching, and creating videos, I have had the humbling realization that I am merely an ordinary startup founder which is not what Uthena needs to reach its full potential as an education platform standing alongside Udemy and Skillshare. Selling Uthena is the only way I can completely let go and focus on what doing what I do best while allowing a buyer with more experience, more capital, and a bigger team to take over.

What does someone need to do to continue operating the business in its current Form? Can you list a few opportunities to Grow for a prospective buyer??

When Uthena sells, I am available for 20 hours to provide a lot of ideas for how Uthena can rapidly grow and ongoing consulting at a discounted rate to advise on the growth opportunities I see and have not had time/resources to implement. Sales will keep coming in indefinitely for Uthena even with no additional marketing necessary because I invested so much time and energy into content marketing for Uthena this year by uploading YouTube videos and having them transcribed to blog posts on my website. Approving new instructors and courses along with providing great customer service is the minimum necessary to continue growing and making more sales. For rapid growth, testing courses with Facebook, Google, and YouTube ads will reveal a few hot topic courses that can be sold at a profit consistently. Uploading free previews to YouTube will help increase the baseline of organic traffic and sales indefinitely. Direct outreach to Udemy instructors will make getting more courses easier. Making outstanding email campaigns to existing buyers and students will help increase the lifetime value of every account. Transcribing lectures into blog posts on Uthena will help get more organic search traffic leading to sales and will be especially powerful when combined with sharing free coupons to courses. One completely dedicated owner or a small team can easily get Uthena up to $10K/month within a year and be on the way to getting the same level of funding from investors that Udemy and Skillshare have raised.

Which niche is hot and unique within Uthena?

The Private Label Rights and franchise marketplace for video courses is getting a high amount of attention with a relatively low effort on my part to promote it. With platforms like Teachable, Thinkific, LearnDash, Kajabi, and LifterLMS making the creation of one’s eLearning platform so easy, there is a rapidly increasing demand for PLR courses where a buyer can purchase the rights to sell a course on their own website. We have received several inquiries asking about a Uthena franchise for $10,000 despite me having only mentioned this in one or two videos. With a focus on the PLR marketplace on Uthena, explosive growth is possible especially when combined with franchising and course bundles. – eCommerce Business Selling High-end Adventure Products – eCommerce Business Selling High-end Adventure Products

Founding Story

Wynnchester is a 4-year-old eCommerce business selling a select range of high-end adventure camping products direct to customers and across the globe. Founded by Kevin Ruston, Wynchester began with Kevin carefully selecting and ‘upcycling‘ the very best military vintage outdoor gear. 



Upcycling, also known as creative reuse, is the process of transforming by-products, waste materials, useless, or unwanted products into new materials or products of better quality and environmental value. The original gear that was upcycled included classic military canvas rucksacks, camp beds, wool & wax-cotton clothing as well as other classic gear that “deserved” to be remembered. 


Present Day Team

These days Wynnchester Outdoors is run by Mike & Lee and has evolved to include an expansive range of products. These are all based on tasteful, functional updates to classic designs that Kevin began upcycling many moons ago. The original upcycled Recon range remains available for purchase on a limited-edition basis via Kevin’s new venture Hawkfield Vintage. Customers love that the business pays homage to the original product offering. Mike and Lee continue to place a high value on heritage when developing products and brand identity, with strong echoes of the past in materials, form, and construction. This ensures the robust gear is both elegant and fit for modern adventure camping.

Why Should You Buy This Business?

  • NOT an opportunity for a passive investor. Needs time & energy invested
  • We bought this as a distressed business in 2015.
  • After successfully turning it around, we have since focused on other ventures.
  • Right now this business ticks over with very little work. Everything is set up with our supplier who manufactures, stocks and despatches goods on our behalf.
  • With our custom built admin panel, we simply log in and press one button!
  • There remains massive potential for an incoming buyer to grow revenues and profits by:
  • investing in marketing: the vast majority of our sales are entirely organic and we do very little outbound / paid marketing
  • expanding the product range: we currently sell only 3 SKUs (products), with the majority of sales coming from one item (our Adventurer bedroll)
  • cutting costs: we have a great relationship with our UK supplier, but also have contacts in China who can produce in larger quantities for a far lower cost price


What Buyers Like

Age. Price. Brand. And clear upside. Strong brand equity built over many years in the market is a strong motivating factor for buyers to acquire this business. As well as the devout customer base. In addition, the business has been significantly under-resourced in recent years, so there is some immediate upside for a new buyer.

If you would like to learn more about this listing, visit the listing page for more information here. –  Poker and Casino WordPress Themes & Plugins for Affiliates – Poker and Casino WordPress Themes & Plugins for Affiliates

Business Overview:

For sale on Flippa is a 10-year-old B2B software business offering a variety of themes and plugins. Flytonic themes were initially developed for poker and casino affiliates. has found favour among users for its complementary and diversified product line-up and for going above and beyond with customer success. Flytonic templates are suitable for both novice and experienced website creators. The themes are constantly evolving enabling the user to add their own personal touch to the “look and feel” of their site.


Market Overview: 

The online gambling market has enjoyed robust growth, benefiting from the global digitisation of gambling products and services. The market is predicted to reach USD 87.75 billion by 2024, registering a CAGR of 8.77%, during the forecast period (2019 – 2024).


Customer Quote:

“Flytonic themes offer a truly robust admin area which allows you to fully customize the theme. The themes are fully responsive so they look amazing on all devices. I highly recommend these themes to anyone looking to create a truly amazing website.”- Kevin B |


About the founder

The founder began on the web doing poker affiliate marketing back in 2005 and then went into web design and theme development.  Since then he has been doing web development, specialising in affiliate marketing. 


Product and service features: 

High conversion rates. Themes have been optimized to convert visitors into customers with special widgets and call to action buttons and tables.

Speed of delivery. Users can quickly install, activate, and launch a theme within minutes. Within an hour customers can add content and begin generating revenue.

Outstanding Support. Each one-time purchase includes lifetime theme updates and support along with unlimited domain and website usage.

Device adaptation. Themes are designed to adapt to different screen resolutions. Themes look great in all tablets and mobile devices too without plugins.


Click here if you would like to learn more about

Positioning your Business for Sale with Chuck Mullins of Quiet Light Brokerage

Positioning your Business for Sale with Chuck Mullins of Quiet Light Brokerage

Chuck Mullins is a serial internet entrepreneur. It all began in 1996 when, at 18 years old, Chuck started his first internet business. Since then Chuck has built, bought and sold businesses ranging from a few hundred dollars to seven figures. Chuck spoke at The Exit about the 4 pillars of value and how to position your internet business for sale.

“Know what your metrics are. What is your customer lifetime value? What is your acquisition costs? This builds credibility and show’s that you know what you’re doing”

Takeaway #1 Seller Discretionary Earnings

Online businesses are priced by taking the seller discretionary earnings (SDE) for the trailing 12 months and applying a valuation multiple.

Seller discretionary earnings are the net earnings of the business plus “add-backs”. Add backs are often thought of as a subjective concept, but in reality, there are standardized principles applied across the brokerage community. Add backs are non carry forward expenses, one-off expenses, and nonoperating expenses.

Takeaway # 2 Valuation multiples

Valuation multiples are proportional to the size of the business. Or, as the business gets bigger, so does the multiple. This is due to the types of buyers present at different price levels. On the lower end of the spectrum, you have mostly “mum and dad” investors purchasing with cash. At the top end, you have institutional investors with deeper pockets.

Takeaway # 3 How to structure your profit and loss statement

It’s best to present your profit and loss statement as accrual, rather than cash. Accrual accounting recognizes all cost of sales at the time the product is sold, rather than when the money hits the bank account. The result is a smoother P&L and a higher SDE.

Takeaway # 4 Risk

Age is a major component of evaluating the risk in a business. If you have at least 24 months of sales data, buyers can see the year to year comparison of the business. This lets buyers view seasonality, growth trajectory and so on. So Chuck thinks it’s best to wait at least 24 months before selling the business. Defensibility is also a key factor in evaluating risk.

Takeaway #5 Growth

Buyers want to know about growth opportunities. So don’t fix all the issues with the business, or you’ll remove the upside for a new buyer. If you’re making any changes to the business before the sale, do these at least 6-12 months before selling to ensure you capture the uptick in revenue.

Takeaway #6 Transferability and Documentation

Before selling a business the transferability of the business needs to be considered. Vendor accounts, supplier relationships, even staff, and contractors all need to be considered. Professional and well document SOP will add value to the business.

Takeaway #7 Timing

Timing is key. Sell when the business when it is growing steadily, not during a high growth phase.

Takeaway #8 Clean data

It’s imperative to maintain clean financials and data to capture buyers’ attention and close off a deal. Know all the key metrics such as average order value, customer lifetime value, and a number of repeat purchases.