Ben Landers, founder of the digital marketing agency Blue Corona, shares his remarkable journey of selling his business without the usual earn-out. Through smart financial planning, strategic focus, and strong partnerships, Ben achieved his dream of total independence.
Ben Landers accomplished what many business owners dream of—a clean exit. This means he sold Blue Corona without the typical earn-out, which often ties sellers to the business after the sale. He achieved this through careful financial negotiations and the support of a silent investor.
Ben's journey wasn't without challenges. His partnership with Bob, his mentor and co-owner, included difficult moments. However, Ben secured a 47.5% stake in the business, ensuring he maintained control and influence.
Key Motivation: Ben’s primary goal was complete independence. As he put it:
"All I want is 100% total independence over my time and to have the finances to do that."
Financial planning was essential to Ben’s success. He closely tracked his spending and used the 4% rule for financial independence. This rule helps determine how much money is needed to live off investments.
Despite achieving financial success, Ben realized material things don’t bring happiness. For instance, buying a luxury car didn’t provide the joy he expected.
"Once you can buy yourself anything you want, you realize that none of that stuff creates any kind of real happiness."
Ben’s approach to valuing his business involved strategic discussions about equity. By doing so, he protected his financial future while navigating complex negotiations.
Selling Blue Corona was an emotional rollercoaster. Finalizing the sale brought relief and joy. Ben celebrated his newfound freedom by looking at his financial accounts and screaming in excitement in the woods.
However, life after the sale also came with challenges. Adjusting to a new identity and lifestyle without the demands of running a business wasn’t easy. Ben’s reflections highlight the emotional complexities of selling a business and the importance of careful planning.
"I remember getting halfway through the loop, just like pausing, like pulling up my Schwab account or whatever it gotten wired to and just looking at it and like screaming in the woods."
Blue Corona’s success came from focusing on a niche—the home services industry. Ben chose this sector because he understood it well and found the clients easier to work with compared to large corporations. He noted:
"With Len the plumber, we might have been the only one competing for that piece of business."
This focus helped Blue Corona stand out, avoiding high costs and stiff competition associated with bigger clients.
Data analytics was a key differentiator for Blue Corona. Initially, Ben found tracking data manually challenging. However, he quickly saw its potential to improve marketing strategies.
By partnering with Bob, a data-driven engineer, they created a business model centred on measurable results. This approach not only improved their clients’ outcomes but also drove significant growth for Blue Corona.
"The tracking became our differentiator."
Ben’s journey was shaped by mentorship and partnerships. Bob, his mentor, provided guidance on critical decisions like hiring and financial management. Over time, their relationship evolved into a partnership.
"I'm done being your blankie to fall back on. Put on your big boy pants."
Negotiating equity stakes with Bob was challenging. Ben initially wanted a 50% share, but Bob’s financial contributions made this unreasonable. They eventually agreed on equal stakes of 47.5%, with 5% going to Bob’s daughter, Alex.
Silent partnerships also required careful management. Ben structured the company to require supermajority voting, ensuring major decisions needed agreement from both him and Bob.
Ben Landers’ story is a testament to the power of focus, planning, and partnerships. By honing in on a niche, leveraging data, and prioritizing financial independence, he achieved his goal of a clean exit. His journey is an inspiration for entrepreneurs looking to build, grow, and eventually sell their businesses on their own terms.
If you're ready to take the next step in building a successful business or planning your exit strategy, Breaking the Mould Consulting Ltd is here to help. Contact us today to discover how we can support your journey to success.