So now that I have this small business to run, what are my plans with it? Most entrepreneurs start out with some kind of exit strategy – how they plan to eventually leave their business. Like most first-time business owners, though, I failed to flesh out this part of my plan before I started. I made sure to do the “right” things from the start: I didn’t name the business after myself, I maintain a separate checking account, and I keep strict documentation on all of my clients to make everything transferrable in the event I decide to sell.
But will this event ever happen? Will I ever want to leave Jumping Duck Media?
The truth is, I don’t really know. I started the business as a sole proprietorship – meaning the company is not technically a separate entity from myself. If I ever wanted to sell, I’d need to convert it to an LLC (Limited Liability Company) first. This is more work on my part, but really, it’s something I should think about doing anyway. If I ever brought a partner into the enterprise I’d want to afford them some level of real control over the business – ownership.
But as of today I’m going to set myself a goal and a deadline. I have a few company assets that make Jumping Duck worth some considerable cash, but as a single-member consulting practice I’m not wading in a steady stream of income. So my goal is to do the following by the end of 2010:
- Convert the company to an LLC to allow for multiple owners
- Establish a steady annual corporate revenue stream sufficient to employ at least 1 additional consultant
- Hire this additional consultant on a full-time salaried basis (bonuses yes, hopefully not on commission)
If I can accomplish that by Christmas 2010, then I’ll consider this foray into entrepreneurship a success and keep things going. I’ll obviously step back a bit and delegate the day-to-day operations to my one (or more?) employee. This will give me the chance to expand into other areas of interest – namely non-profits.
However, if I can’t accomplish this by Christmas, I’ll be falling back on a second set of goals:
- Convert the company to an LLC
- Establish a steady revenue stream of at least $40k annually
This will allow me to approach potential buyers for the company. The revenue stream is a considerable asset to the company. My block of ISBNs is another strong asset, as is the portfolio of websites and former clients that I’ve built up. So, if I can’t make Jumping Duck Media a company that will stand on its own without my day-to-day oversight by the end of next year, I’ll consider it a slightly lessor success and sell it to focus my energies elsewhere.
Either way, though, I still consider the company a success. Starting things up has been quite a ride and I look forward to where things will go from here!
