They Got Acquired - Watch for this in your non-compete

January 26, 2024
​Read on web​

As Jared and Sara Springer brainstormed what business they wanted to create, they noticed many brands sold products for dogs, but not for their owners.

Once they decided to focus on pet lovers in 2016, they started, scaled, and sold their e-commerce shop — Happy Puppin — in just three years.

To scale, they ran a mix of paid ads and organic content on social media, featuring individual products alongside funny and adorable dog memes that dog owners could easily relate to.

Jared had reached 60,000 Facebook followers when he found a small robotic bank in the shape of a dog. He started selling it and got so many orders he had to make a huge wholesale order from a supplier in China to fulfill the demand.

Despite shipping delays and winter weather, the Springers got all 5,000 orders out the door in time for Christmas.

“It was the first product to launch the Happy Puppin brand into profitability,” author Ryan Moran wrote in a profile of Springer in his book, 12 Months to $1 Million. “One year later, the brand had brought in a million dollars in revenue.”

Here’s how the Springers found a buyer and sold for mid-7 figures:

​Online shop for pet lovers used dog memes on social media to grow to $1M+ in revenue​

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Why the non-compete deserves your attention

The $ matters. The terms matter. The buyer matters.

But too many sellers underestimate the importance of this part of the deal: your non-compete.

It looks like a little clause in a big agreement. But it can drastically affect what you're able to do with your life after you sell.

Here's why...

First-time sellers are often shocked to find that selling your business might require you to leave the field entirely. The space where you have all your knowledge, all your connections.

Some even sign off on this without quite realizing what it means. That's because non-compete agreements tend to be strict as a starting point — until you ask for what you want and need.

So amend that language before you sell! Make sure it allows you to go on and do what you want to do next.

Sometimes, a buyer will hold tight onto a strict non-compete. But especially for 6 and 7-figure deals, the buyer is often amenable to adjusting the language so it plays nice with your future vision.

Think about it from their point of view: The buyer wants to ensure you don't come into this space as a direct competitor.

What if the non-compete was written in a way that gave them that assurance AND also allowed you to pursue your next dream?

It's possible. Just make sure you ask.

See you next time,

Lexi Grant
Founder & CEO
​They Got Acquired​

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P.S. If you want to dig in deeper on non-competes, including what's typical and what's not, head to the 25-minute mark on this interview.​