Selling Your Agency: It’s Not Just About the Money

Are you considering selling your agency? Before you dive into the process, it’s important to understand your true motivations. Many agency owners make the same mistake of focusing solely on the financial aspects of a deal, but there’s so much more to consider when planning your exit from your marketing agency.

The Pitfalls of Money-Driven Decisions

When agency owners prioritize money above all else, they often fall into one of two categories:

1. The desperate: Those who act cheap and accept any offer that comes their way.
2. The over-reachers: Those who become greedy and push beyond acceptable limits of what’s actually possible.

These mindsets can be detrimental when it comes to exiting your business. Without a well-thought-out exit strategy, money becomes the primary driver, leading to prolonged negotiations and potentially unfavorable outcomes.

Digging Deeper: The Real Reasons to Sell

Before you enter into any negotiations, ask yourself: “Why do I really want to exit my agency?” Here are some potential motivations to consider:

• Personal growth: Do you see selling your agency as a rite of passage in your entrepreneurial journey?
• Building an empire: Is this sale a stepping stone towards larger business ventures?
• Freeing up mental space: Are you looking to focus on other projects or aspects of your life?
• Going out on top: Do you want to leave your agency at its peak performance?

Remember, some of the most successful entrepreneurs, like Larry Ellison, Jeff Bezos, and Warren Buffett, never sold their companies. So, what’s your unique story?

The Mark Twain Approach

Be honest with yourself about your motivations. What’s the real reason you want to sell – the one you might not even share with your partner? Understanding your true motivations will help guide your decision-making process and lead to a more satisfying outcome.

Need Help Finding Your “Why”?

If you’re struggling to pinpoint your reasons for selling, don’t worry. It’s a common challenge that many agency owners face. In fact, when I sold my marketing and media business, at first I didn’t know why I was selling it. I thought it was because I’d had enough, but actually it was because I had outgrown what I had built and wanted to work on something completely different.

It wasn’t until I had moved on and a mentor talked it through with me that I realised the business I had built was holding me back.

Sometimes, an outside perspective can provide the clarity you need.

Consider scheduling a horizon call with an experienced advisor who has helped numerous agency owners navigate this process. Together, we can brainstorm and uncover the underlying motivations driving your decision to exit.

Remember, a well-planned exit strategy based on clear, honest motivations will not only lead to a smoother negotiation process but also ensure that you’re making the right decision for your future.