This past week, Playboy enterprises announced that the ultimate bachelor pad had been placed on the market, with a list price of $200 million. As a business owner yourself, you may be asking why? Hasn’t operating the mansion been successful for Hugh Heffner? Hasn’t the image and reputation of the mansion turned a profit for him over the years? The answers would be yes, but as any business owner knows, times change. The once notorious mansion, known in past decades for its lavish parties and risqué guests, has lost its allure in popular culture in more recent years. The mansion’s naughty reputation that made it unique and marketable has faded over time, along with the magazine. As technology has increasingly advanced through internet, streaming television, and smart phones, Hefner’s techniques have only become dated. CEO Scott Flanders said in a statement that the proposed sale is a tactical decision that will allow Playboy “to continue to reinvest in the transformation of our business”.
Changes occur in all business, large and small, and unfortunately some of these changes can negatively impact the success of a business if they cannot keep up with the evolving times. In the past few decades a technological boom has taken over the business world. With the birth of social media, television streaming, websites, online advertising, YouTube, and smart phones and apps, it changed the way business conduct business. It takes a substantial amount of time and effort to be able to keep up, not to mention funds if you are employing someone to do this for you. As an established business owner, you have either evolved and adapted, or you are struggling to keep up and stay relevant.
If your business has been impacted over the years and you find yourself considering placing your business on the market, you should take a cue from Hugh. Are you willing to continue to be the tortoise in the race, or are you willing to be the hare (or bunny in this case), and see if you can fast forward your potential profit and sell? Are you willing to reinvest in the transformation of your business by allowing the next person to take it to the next level and make it relevant?
The decision to sell should not be taken lightly. Many factors should be taken into consideration prior making the commitment to place your business on the market. A business broker can assist you in making the right decision for you, and your business. For more information, call us today at, 1-800-BIZ-BROKER.
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