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Should I sell my brand?!?

by bsurb
29 replies
I opened a thread a while ago about me buying a clothing brand from someone for $3,000. Iv been running it for about 4 months and I got an offer for $4,600.

The current name is called cmfaclothing.com I was thinking about starting from scratch with my own name. But then id have to make all new designs. Advertise all over again etc

What do you guys think I should do??
#brand #sell
  • Profile picture of the author znightmare
    Well, how much money are you making with it, if any?
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  • Profile picture of the author SuperKC
    If your not making any money or progress then sell that baby off.
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  • Profile picture of the author Ihsan01
    sallam.....
    i think you must do the market surveys and keyword surveys first .to make a market target
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  • Profile picture of the author bsurb
    In the few months iv owned it I have made about $100 per month. I spent $3k on the brand it came with lots of product and inventory. Ill make about $1200 if I sell the brand so I basically will have 1200$ to start a new brand with no product...
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  • Profile picture of the author Katie Rich
    Does the sale price include all stock? If so, what is the value of the stock?

    Not much point in selling if it is making an income and it will cost you more than $1200 to replace the clothing lines.
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  • Profile picture of the author Taniwha
    What do you mean you'll only have $1200 to start a new brand with? Surely you'd have $4200 (or $4600 as stated in your original post)?

    When a brand is averaging $100 profit a month, I'd sell it, then create a new site as I think you want to do.

    While you're in this predicament, create several new designs for the "sideline". That way, if you continue with cmfa, you can add those designs in. But if you decide to start fresh, you'll already have a set of designs ready to go.
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  • Profile picture of the author Luke Dennison
    Sell it off and start one with your own name. Its a lot easier branding something centered around YOU, not someone you bought the brand from originally.
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  • Profile picture of the author mrhmamun
    If it's give you satisfaction don't sell it, remember "OLD IS GOLD"
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  • Profile picture of the author TheFranchiseMarketer
    Banned
    Wow bsurb! That is a really good question because you can look at it from two different angles. At one angle I would say no. It would be the wrong idea to sell your business because selling a business is the same as selling your financial security. And some of us know the horrors of being at the bottom. Especially inside of todays economy.

    On the other hand I would say yes because for one, you will be selling the business for more than what you originally purchased it for and also you can brand the new business the way you want. There is nothing like owning your very own brand. But... If you ask me. I would at least hold on to the brand for now and allow it to get to the point where it is worth a whole lot more than it is. And in the process you will also not have to suffer the lack of financial security.
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  • Profile picture of the author bsurb
    I have lots of inventory. I have potentially $12k in stock if I were to sell it all. Hats. Shirts. Glasses hoodies etc..

    I bought the brand from a friend iv been paying him weekly basis until its paid off at $3k. I have 1500 paid so far but if I sold it at 4200 I just pay him off quick. But im only left with 1200 to get new shirts made. Website. Etc

    The brand I got now isnt bad. Its a street wear brand and things like that, I just sometimes think of a cooler name so it makes me wwant to re brand my own.

    I took over cmfa a few months ago. It was completely dead but im averaging about $100 a month right now in 3 months. Havent done any major seo, marketing etc just yet.
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  • Profile picture of the author Gambino
    I saw this site for sale one Flippa for (seemingly) a long time. I always thought it was overpriced but $3000 is probably about right. What does. CMFA stand for?

    I'd ask yourself if you REALLY want CMFA to be YOUR business. If not, then cut your losses (with a profit!!) and develop a brand you're proud of and will work to grow. Now it'll be tough with just $1200 in capital (assuming you don't have any other funds) and without knowing your background. It may be more beneficial to put together an exit strategy - build the income, invest in the business/marketing, and eventually sell for a higher price before starting your own line.
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  • Profile picture of the author Basenix Group LLC
    I wouldn't sell it.
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  • Profile picture of the author bsurb
    If I tell the original owner that I have $2500 to pay I could probably sneak by and get CMFA for that. I already have $1,200 paid off. If I sell it for $4200, I actually have about $1700 to play with. 24 shirts (one design) cost me about $300 to get printed.

    I just don't know if I should let it go since I am making a profit. My Facebook has been growing rapidly just by word of mouth lately. I started the brand it had 1,500 likes I now have almost 2,100 and people are starting to actually engage. Twitter has over 600 real followers. Instagram has over 3K.

    Iv never been too much into the skate scene but I was going to make it blend in with the music field and make it more hip.

    CMFA stands for Creative Mind For Art. Its a lifestyle brand. I refer the art to music, designing, etc
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    • Profile picture of the author DWolfe
      Originally Posted by bsurb View Post

      If I tell the original owner that I have $2500 to pay I could probably sneak by and get CMFA for that. I already have $1,200 paid off. If I sell it for $4200,

      I just don't know if I should let it go since I am making a profit. My Facebook has been growing rapidly just by word of mouth lately. I started the brand it had 1,500 likes I now have almost 2,100 and people are starting to actually engage. Twitter has over 600 real followers. Instagram has over 3K.

      Iv never been too much into the skate scene but I was going to make it blend in with the music field and make it more hip.
      You have a few really good options. One hold the site and pay the original owner off than sell the business for a profit. Or build the new business on the side and keep both while slowly moving into your new business. You can always fall back on the brand.

      Another Idea is to see if you can get the person who is currently interested in buying the brand to be a junior partner. You keep some profits and own the business while they run it. You are in control at this point and in a great position to bargain. You have other options too. Running two business or one giant super store.
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    • Profile picture of the author Mike Hill
      Originally Posted by bsurb View Post

      If I tell the original owner that I have $2500 to pay I could probably sneak by and get CMFA for that. I already have $1,200 paid off. If I sell it for $4200, I actually have about $1700 to play with. 24 shirts (one design) cost me about $300 to get printed.

      I just don't know if I should let it go since I am making a profit. My Facebook has been growing rapidly just by word of mouth lately. I started the brand it had 1,500 likes I now have almost 2,100 and people are starting to actually engage. Twitter has over 600 real followers. Instagram has over 3K.

      Iv never been too much into the skate scene but I was going to make it blend in with the music field and make it more hip.

      CMFA stands for Creative Mind For Art. Its a lifestyle brand. I refer the art to music, designing, etc

      Why would you hold stock or want to hold stock?

      I understand you bought the business with stock but if I where doing this I would sell all the stock fast at a discount and then move on the plan below.

      There is a lot of money being tied up in stock and when it isn't moving fast then that's dollars that could be used to build the brand (a.k.a. advertising)

      Here's what I would do:

      1. Sell off the remaining stock you have on hand (on sale)
        .
      2. Take your designs and put them out on TeeSpring and other similar sites that only print if you sell more than 10 (minimum).
        .
      3. Build the brand

      Otherwise I'd probably sell it and start over using the above mentioned formula.
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  • Profile picture of the author BWHadam
    don't sell it , try to grow your traffic and enjoy the money coming in. It will take the time and other complexities to go with the scratch.
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  • Profile picture of the author bsurb
    I'll probably end up keeping it. The other brand I wanted to start is kind of taken anyways. FYG Clothing is taken and I was going to use FYG Apparel. Or Fly and Famous clothing.

    But CMFA has lots of work and $ invested. The only thing that bothers me is when I tell people what my clothing line is, I say CMFA. I wish it was more of a word of that makes any sense. Like Fly & Famous.
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  • Profile picture of the author bsurb
    I can buy out cmfa for $2500 total. Sell it today for $4500..

    I already paid $1,000 which means $1,500 its paid off. $4500 minus $1500 actually leaves me with $3,000 to start a new brand and to get products....

    The pros for buying cmfa in the first place was it already had designs made up. I didnt have to do anything but make a new website and sell stuff. Basically starting it all from scratch because the site is dead.
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  • Profile picture of the author bsurb
    Bumppp.. need some advice
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    • Profile picture of the author valarmorghulis
      Okay, how about you invest some money and revamp the business. Why can't you rename it/rebrand? If the clothes are already branded, then try to sell those off and rebrand the new stock. Try to get some affiliates and drive some traffic. Get out there in instagram and social media. Get bloggers to wear your clothes. Get hot models on fiverr to take professional pics of themselves in your clothes. basically get higher quality images on your site. And market it. When its making more money, then you may consider to sell it, and it could be worth alot more than a couple thousand bucks.
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  • Profile picture of the author bsurb
    I dont see how I can re brand it if all of the tags have cmfa on them. There is so much product its not going anywhere anytime soon...

    So I shouldn't sell it for $4,500?..
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  • Profile picture of the author bsurb
    I was giving the stock away with the site if I sell it. There is so many shirts to sell it would take forever to do so.
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  • Profile picture of the author Assignmentwriter
    I suggest you do not sell your brand do more marketing for brand to get better results
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    • Profile picture of the author Richard King
      Originally Posted by Assignmentwriter View Post

      I suggest you do not sell your brand do more marketing for brand to get better results
      This...

      Don't sell, improve it, market it more. Get sales to a good point then sell it for 10 times that amount.

      Richard
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  • Profile picture of the author bsurb
    So even though the brand focuses more around skating because of the previous owner, how do I branch out to other tastes? Like for example, people who love hip hop music. How do I start selling designs that surrounds interests other than just skating?
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    • Profile picture of the author Steve B
      In my opinion, CMFA is not a great brandable name - in fact, and to be honest, it is pretty forgettable.

      You should think about your time and "sunk" costs. They are gone - you can never recover them. You're making a lousy $100/month - is that what you want for all your work? So you work hard and do ten times that amount. Now you have $1,000/month. Are you going to meet your needs with that amount? Most likely not.

      If I were in your shoes I would dump this business fast while you still have something of an asset. Maybe you can make a small profit on the sale based on what someone could do with it and the inventory you have.

      If you decide to ramp it up and it flops, then what are you going to do? Try to unload it on Flippa like all the other loser businesses?

      If you like the business, start smart, from scratch with a truly brandable name. Start small and use what you know to build a business you can be proud of.

      Given the questions you're asking, and the fact that you've owned the business for 4 months and have only averaged $100/month, I would say something is wrong with the model, how you're executing it and what you're doing to grow the brand.

      If it's the brand that isn't working, dumping it for a better one is the only way to overcome that problem.

      If it's you, the owner, I would say get whatever you can out of the sale, spend some time learning how to market and build a brand, then proceed cautiously in building a business from scratch the right way - building a subscriber base, tracking and testing offers, and scaling up only after you have found a profitable business system that consistently earns for you.

      It takes actual honest and hard work to build a profitable business. You haven't given your business a chance yet - what makes you think the next four months is going to be any different than the past four?

      Steve
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  • Profile picture of the author bsurb
    I wanted to start from the bottom regardless, but with my own name. I never felt motivated with CMFA because I didn't create it.

    So I was either going to start brand new with "LB Clothing" or "Fly & Famous Clothing".

    Live Brave Clothing
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  • Profile picture of the author bsurb
    Do you really think CMFA is forgettable?
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  • Profile picture of the author bsurb
    Also the buyer told me that we thought we were doing $4,500 without any paypal fees or shipping fees. If I cover shipping all the product it will run at least $150 to $200. And paypal fees are like $130. So Im getting like $4,200 after its all said and done...

    I'm in such a bind idk what to do -__-
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