How to Know When It Is Time to Sell Your E-Commerce Business

Posted on December 5, 2018

Snow Teeth Whitening founder Josh Elizetxe isn’t your average entrepreneur. The 25-year-old expert in e-commerce marketing hatched and began executing his first business idea at 13. He’s since scaled several e-commerce companies well beyond eight figures without raising outside capital. He’s become very adept at building extremely profitable brands backed by patented technology, which has been the mission with Snow.

Snow is clearing $2 million a month and is on track to hit $25 million this year. The company has partnered with an impressive list of high-profile celebrities, a testament to Josh’s ability to leverage influencer marketing for success.

We recently interviewed Josh for an episode of our podcast, which is set to launch soon, and discussed many topics related to e-commerce. Here’s an excerpt from that interview about knowing when it’s time to sell your business:

Question: Where is the cash-out point for you? And for people who are looking to cash out, when is it time to do that?

Josh: Entrepreneurs get paid at the end. If you want to build an income versus building wealth, that’s a whole different business. If you just want to build an income, you build a lifestyle business, that’s great. I’ve done that before. But money has never satisfied me the way that I thought it would. And I’m talking millions of dollars, sports cars, mansions, flying private, whatever you can think of, I’ve had my hands in it. It’s fun, cool, awesome, but all I’m thinking about when I’m on the private jet is business, strategies, I’m on wifi slacking my team. I love the hunt. I love building and growth. That’s what I’m addicted to. For me, the pursuit is happiness.

The irony of capitalism is that you have to make everybody else wealthy and successful before you become successful.

You never want to build a business to sell it, but you always want to build a business that is sellable. The time to sell a business is when you’ve extracted the maximum amount of potential within your organization. Once the opportunity cost starts to leak over to the right, that’s when you sell the business.

So I always sell a business when they are incredibly profitable and everybody is saying, “You’re so stupid, why are you selling this?” That’s exactly when I know to sell it. You never want to sell a business when it’s on it’s way down and you’ve waited too long. You hold onto something too long and it starts to rot in your hands, so you have to know when that point is.