We love sharing success stories! This story of a successful exit comes from one of our favorite sites, Capitalism.com. Read on to find out how one entrepreneur took his business from zero to sold for seven figures.
Building a successful business is a dream for many entrepreneurs. Turning around and selling the same business for 7-figures is another feat altogether. It’s also a goal Ryan focuses on time and time again. And Jared Springer made the 7-figure exit dream his reality.
A Pattern of Perpetual Boredom
Entrepreneurs don’t choose the lifestyle because it’s easy. Instead, they want something that pushes them to the max. Something that tests their mind. Something that keeps them on their toes. Jared, true to this stereotype, found himself always seeking his next challenge.
This mindset followed Jared everywhere he went. Even as an employee, he would give his all for two years and become the top dog. But boredom would take over.
Jared found himself in a never-ending pattern of getting hired, doing great, and leaving for something different.
From Crippled to 7-Figures
An unforeseeable change of events was about to put Jared on an entrepreneurial track. After waking up from back surgery basically paralyzed, Jared found himself unemployable. Unable to stand, sit, or lift, his only option was to work from home.
While many people in his situation would just go on disability, Jared wasn’t about to let this be the end of his story. Instead, he decided to venture into e-commerce. But knowing Jared’s history of getting bored, it didn’t surprise anyone when he decided to sell after just 3-4 years of building his business.
And he sold it for well over 7-figures.
Three Is the Magic Number for Jared Springer
When Jared made up his mind to sell, he assumed the process would take about six months. But his timeline was a bit ambitious. From hiring a broker to closing with a buyer, the entire selling process took about a year.
Looking back, screening multiple brokers was one of the best decisions Jared ever made. He started his search on Google. There are a ton of brokerages out there, but only a few specialized in e-commerce businesses. Jared interviewed a handful and settled on the one who seemed the most knowledgeable. It also helped that their personalities meshed well.
Finding a buyer for a business is nothing like selling a home. The pool is a lot smaller. Jared also didn’t want to sell his company to just anyone. Lots of buyers didn’t have any e-commerce experience. But running an e-commerce business is a different world than owning a physical business. He hoped to find someone with the knowledge and background to take the reins and run with it.
Finances also played a significant role in finding a suitable buyer. Jared didn’t want to waste any time, so his broker recommended getting all prospective buyers pre-approved. Vetting potential buyers even before they submitted a letter of intent would ensure the right one would be able to close without any unforeseen financial hiccups.
Two buyers almost made it to close, but the deal fell through both times. They either wanted to change the terms or just got cold feet. After losing the second buyer, Jared even contemplated keeping the business. However, his broker encouraged him to stick it out.
A third buyer came along, and this time, everything went through without a hitch. He sold for 7-figures with a 3x multiple.