I’m a Wake Forest grad that built and sold a renegade museum tour business
When I graduated from Wake Forest in 2004, I didn’t have a plan and I didn’t have a job lined up.
Eventually, I started a business, Museum Hack, without any money.
And in 2019, I sold that business for millions of dollars.
Dr. Bennett asked me to write this article about what I learned from the sale of Museum Hack. I’m excited to share these insights with you because I believe they can help you build your own successful businesses and projects. I’m sharing information I’ve never shared anywhere else.
Let’s get into it…
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I started leading renegade museum tours at the Metropolitan Museum of Art way back in 2011. It was just me and my friends appreciating art in a new way. Then, a journalist wrote an article about my tours and called them the best thing to do in New York City. The next day I had over 1300 people that wanted to join one of my museum tours. I recruited some friends and later hired a guide to help lead the tours, and then I started charging for tickets so I could pay the guide. The first tickets for my museum tour were $20. That’s how I funded the company: by selling tickets. I worked my day job during the week and then did this on nights and weekends.
By 2019, Museum Hack was a successful business. We had just finished a record year with $2.8 million in revenue and 20,000+ guests. We had 50+ employees around the US, were privately consulting for some of the most prestigious institutions in the world, and had enterprise clients like Google, Facebook, and Johnson & Johnson doing team building activities with us. The Inc 5000 included Museum Hack in their list of fastest-growing private companies in America two years in a row.
So, why would I sell?
Why I Sold Museum Hack
I’ve written about the sale of Museum Hack once before, and you can read the backstory on my personal blog. The short version is:
- I had a unique opportunity to sell to people who care about the business as much as I do.
- I was ready to move on to new projects.
The first one, the opportunity to sell, was unexpected. Most people, including me, dream about an IPO or a big flashy sale to a giant company. Instead, I went out for hot pot with Museum Hack’s CEO and Director of Marketing and they offered to buy me out. My gut reaction, both to the boiled meat and the sale opportunity, was surprisingly positive.
Over the next few months, we worked on the details: How? When? How much? I had some hesitations during that time, like “what does it mean to pass on my legacy?”, “what will I do with my time?”, and “am I getting the best possible price?” Ultimately, I found peace with these thoughts because of a much stronger one: there are no two people in the world that better know the ins and outs of our quirky business than the people currently running it. I believe that Tasia, the CEO, and Michael, the Director of Marketing, will not only maintain the business we built together but make it even more successful and impactful.
Financially, it made sense too. In addition to the funds I have and will receive for the sale of the business, I still own 15% of the equity and advise the company on certain projects. I’m excited about the future growth potential.
Who I Called When I Needed Help
I had dozens of phone calls while figuring out the sale. I called friends, competitors, successful business people I look up to, and my mother (for love and support and also because she is a smart accountant. Thank you, Mom!).
I also called my lawyers. We structured the deal as a seller-financed transaction. That means that in exchange for transferring the ownership of the business, the buyers took on a debt to me. A deal like this is more complicated than a cash purchase. We needed multiple supporting contracts and documents to make it all work. The advantage of a seller-financed transaction is you can negotiate more favorable terms.
The two people I talked with most were the buyers. We have been friends and worked together for years. We are still friends. The negotiation was occasionally fierce, but we genuinely wanted the best not just for ourselves but for the other parties as well. In the end, we made a deal that is fair and a great opportunity for all involved.
Advice on How to Build and Sell a Business
I learned a lot from Museum Hack, from regulatory stuff like business registration and trademarks, to marketing, sales, team building, and more. Here are some specific lessons.
- Your business idea doesn’t have to be a business idea. I started Museum Hack as a hobby. It was a fun way to spend time with my friends and show them something I loved. I genuinely wanted to create the best museum tours possible. The project didn’t become a business opportunity until serendipity took it that way. Find a hobby you love that others appreciate and work on that.
- Find something other people are doing and make it your own. The first part ensures there will be a market for what you do, the second part gives you a better shot at reaching customers. If I had just started a regular museum tour company it may have done okay, but Museum Hack was able to capture major interest and be featured in the New York Times, Wall Street Journal, Bloomberg and hundreds of other media outlets. This attention fueled our growth.
- Invest in great marketing. A good concept and a lot of work can build a successful business, but you will almost definitely need marketing to grow it.
- Have realistic expectations. A lot of great businesses are not billion-dollar opportunities. If you can build a profitable company, and provide great jobs for your team, then that is a win.
What’s Next for Museum Hack
The new owners are taking Museum Hack in exciting directions. They’re taking it to places that I never was able to grow to. There are more tours happening at more museums and top-secret plans for international development. The company also recently acquired teambuilding.com to grow its team-building offerings to new cities like Austin and Denver. In addition to public tours, Museum Hack also does these B2B “team building activities” for employees at companies like KPMG, LEGO, and Chipotle. Building a new website focussed on that industry is an opportunity to do more of this work.
What’s Next for Nick Gray (me)
One thing that really helped me launch my business was my network in New York City. But what even is a network these days, why do you need one, and how does someone in their early 20s build one? The thing that changed everything for me and my relationships was when I started to host small cocktail parties. It’s a longer story, but I’ve been writing a book about it to help teach anyone how to build big relationships by hosting small parties. See more info about that here on my website. I’m also very active on Instagram, Twitter, and Facebook. I also keep a personal blog where I share business and travel tips.
More Information
I’d love to answer any questions you have about Museum Hack, the sale, or business and entrepreneurship in general. Ask me anything! Either on this blog or email me at hello@nickgray.net