I Will Sell My Business When Earnings Equal My Living Expenses, So That I Can Be Independently Wealthy

DougMaly.com
8NOV2020


unorganized

From: "Business Course I" by Gary North
Lesson 65

Who Cares?

Of course everyone wants to be independently wealthy, right? Of course everyone wants to sell a profitable business ... right?

Well, yes most people would want a profitable business. But

  1. Most will not take determined action.
  2. For those who take action - and succeed - it is all too easy to just be ensared in the trappings. That is, to treat profits as the ends and not the means.

This is why one should care. One should clearly identify the ends towards which they labor. And one should know when to declare "done"; goal achieved. That is, one must have an exit plan.

So What Is the End Game?

My End Game is to be independently wealthy.

Independently Wealthy: "My actions are not driven by the need to pay bills."

I do not expect to ever stop working completely. But when I am independently wealthy I will be free to turn down any work for an indefinite period of time.

I will be free to spend time with loved ones. I will be free to hang out. I will be free to travel.

I will be free to implement my Life's Calling.

Why Should Earnings Equal Living Expenses?

The sales price of a business depends on many factors. But my target is for the price to equal 5x annual earnings. Specifically, I will take a sales price allows me to bank five years of living expenses.

This amount in the bank means that I could completely stop all work and gigs for a solid five years, yet maintain my lifestyle.

That is, I will be Independently Wealthy.


d.maly@ieee.org