What to do? Sell or Continue?
I have a brick & mortar business that I've built over the last 6 years and in a year I need to either end it(aka sell it) or add on five years. Five months from now is when I need to being paperwork for selling, after I see most of 2026's actual sale data since growth is so speedy.
Revenue is on target to be a million this year for the first time, about 70% retail and 30% online split. I have gone into much debt building the retail portion but the foot traffic, loyalty, branding, location, all of it took time and growth has been exponential. 30% YoY, hitting and beating sales goals every quarter. Good reviews, many many customers I've seen weekly for years.
But the debt...a EIDL, then a home refi, a SBA7a, and short term stuff adds up to $750k ($600k in business related debt, $150k added onto the house equity) if I where to zero out everything and go back to before it all started. The early debt and missteps meant I truly didn't get things under control until last year. The retail portion was a real bitch to build and only started about 4 years ago and only 2025 was profitable at $850k in sales.
Presently, without a need for more hires, overhead without debt payments is $390k/yr for rent/labor/bills and then about $260k for inventory. My debt payments are around $6k/mo and hopefully in a year and a half, pay off two terms of debt and handle just the two large payments EIDL/7a which is $3.7k/mo going into the second 5 years.
Issues: Inventory is non contractual. The source, singular, could poof out of existence, but is unlikely and has been around for a long time and their existence is contractual.
Pros: I am not there day to day. When I am it's enjoyable work. But I can choose not show up for a month and everything be fine.
2026 could exceed expectations and hit $1.2m as a stretch goal without more inventory, just more customers and turn over.
Million dollar revenue and $650k in overhead I think is solid for selling. I think I could get out from underneath the debt from a sale IF 2026 is favorable and offer the 5 year extension to the buyer. Staff is trained, self sufficient.
If I do continue, well, all the hard work is over and by the end of 2032 I'm debt free. Probably do $150k in 2026 and 2027. Get debt payments down to that $3.7k/mo and do $200k/yr after. Bring in $1.3m total by the end of it all in 2032 maybe more as growth continues beyond 1m/yr in sales. Even after taxes on that assumed profit, I'd be at zero debt. I'd enjoy the work and build out management more and more.
But of course, shit could go sideways. Right, nothing is a given. But I'd enjoy life I think