Manies Q
Given that we poker players (well, I haven't been one much at all for a year or 2...but recall something about cards) think of money in fairly unique and forthright terms I thought I would ask this over here.
If you owned a business that you enjoyed and that is rapidly growing due to your hard work and had an offer to sell...how much would you want clear in the bank after loans paid, taxes paid, etc. to be comfortable not having to work too hard any more? Of course, you could still work if you want to and would probably leave most of the profits in investments for 5-10 years with compounding interest while living off your wage.
If you owned a business that you enjoyed and that is rapidly growing due to your hard work and had an offer to sell...how much would you want clear in the bank after loans paid, taxes paid, etc. to be comfortable not having to work too hard any more? Of course, you could still work if you want to and would probably leave most of the profits in investments for 5-10 years with compounding interest while living off your wage.
Comments
used to be now indeterminate
Rather than sell, is there any way you can hire someone to take on more of the hands on, day to day stuff, so you can relax a little ?
I agree with dj's comment. It seems like you've put a lot of time and effort in to this business. Is there a way to hire someone and delegate/offload work while keeping the company?
In a vacuum, if it was just me, I think my minimum would be a million. In my current situation with a wife and newborn, probably at least two million although again, depends on a lot of factors. If I was super unhappy with my life and the amount of work I'm putting in, I could see potentially taking less just to get out of that situation with plans to find a job that I'm happier doing.
For now, I am just enjoying watching the numbers for the business grow as I previously enjoyed watching a poker bankroll grow. The business side of things feels like a literal numbers game. Of course, medically, I love helping all the clients and their pets, providing a great place for our staff and expanding the reach of our practice through advertising, etc.
Some interesting responses wrt amount of money...we are mostly in similar ball parks. It is fun to consider what may be a once in a lifetime opportunity financially due to experience, hard work and possible lucky timing wrt what some corporations will pay for a successful business in my industry at this time.
As for hiring someone else, we have expanded from 1 vet to 3 over the past 2 years and are still growing. If the plan is to continue growing and selling in 1-2 years then I will continue to enjoy working hard and realize as much growth as possible. If I decide that the plan is to keep the business long term then I will work a bit less and balance my life out a bit more in the short term.
As long as it is fun it isn't really that much work anyhow..except for some of the exhaustion:)
Look forward to hearing any other thoughts on the subject.
On the flip side, I am probably a losing poker player for the first time in my life over the past 2 years -- around -1500 in 5-8 overall sessions:( that used to just be a bad week...
If making many millions is not your goal, I would work part-time and start spending on the life experiences you and your girlfriend want. As my father's health deteriorates and can hardly walk, I can see my future and use poker to travel and check off bucket list items as much as possible while I'm still healthy. I just came back from Panama, but it's time for my next bucket list items of travelling to Ireland and China for the first time.
What % return have you been getting on your money? I don't think I could retire on 1 million...maybe 2:)
10%-15% is decent.
Sounds prettttty high for safe long term investments.
You need to keep an eye on it and possibly change investments around monthly/yearly but it's doable. I'm lazy and I don't invest as much money as I should but I get that.
I'm crazy conservative with my investments and on "bad" years I'll settle for 8% overall.
Those numbers (8-15%) seem really high to expect long term. For sure you can have certain years where you hit those numbers but expecting to hit those numbers as part of a retirement plan is incredibly optimistic.
Over what time period have you had those types of returns?
How much risk is there in your “safe investments”? Any chance of a negative return? My “safe” money (currently my emergency fund and what I have set aside for a house down payment) is in a high interesting savings account which is nowhere near 5% return.
Would you say that the majority of your work is managing the business or doing clinical vet stuff? If it's more business related, could you hire a business manager or an assistant to help out? If you're busy with the actual vet stuff, I guess you could hire another vet. Find the least enjoyable/time consuming aspects of your job and see if you can hire someone to help out or do it for you.
It seems like you've put in a lot of work and the company's doing well. Seems like it'd be a shame to sell at this point if you could continue to be involved and grow the company if there's still a significant amount of upside.
However, I may be in a unique time period as to what certain larger companies are willing to pay (double the traditional value) for a very successful clinic...so I am thinking out loud a bit about my options. I would always have the option of staying and working at my current salary after a sale as well...if I don't go the hookers and blow route.
It is nice to think that you could eventually get a large pay day for something that you are very good at, have worked hard at, and have been doing for a very long time...WWMD?
See the post above. We are still growing at over 15% a month. I enjoy all aspects of the work and I do most of it, but it does take up some time...as long as I enjoy it that is not a big deal for a couple more years. Just thinking that this could be a unique time-frame for a sale (well, for the next few years at least).
Small clinic in Maui or similar would be her eventual goal...mine would be deadbeat living off of her?
Two million is safer for most couples. Our situation is rare, as she wants to save everything for a "rainy day" and hates travelling, while I re-invest some of my poker winnings on travelling and bucket lists so I will have no regrets even if that rainy day ever comes.
Usually can do what I want after. They prefer to have the owners stay and work on salary but I am not committed to do so. Salary etc would be negotiated at the time of sale.
apologies . . . I should have said somewhere new. That being said, if the sale price of the clinic is really as inflated as you state, then SELL. Stay on as an employee, and BANK that cake. If, in a couple years, you get the wanderlust again, well, you now have the money to back up any move you wish to make, right?
True...guess I am a bit broken:) but I deal with it.
This would all theoretically be after another fiscal year of growth, just fun to think about for now. Just think of the forum freerolls:)
??? Nobody here even PLAYS anymore.
Would becoming an employee or a contractor something you want to do? Seems like you can still make a good living from it but at the same time cash in on your business, and gain freedom from the business side of things (and also committing alot more hours to the clinic)
Whoa whoa whoa..hold on there one sec.