Have you ever wondered how to increase the value of your business?
Let’s face it, starting a business is challenging at the best of times. The learning curve is steep, and the stakes are high.
It’s little wonder that most businesses fail.
I should know. I started my business right out of school with no money, experience or team.
The daily grind was one of the hardest things I’ve ever done.
But along the way, I found techniques that worked.
Like a jigsaw puzzle, I began to piece together a business success playbook that got results.
Thirteen years later, I had a 9-figure exit based on a 13 time EBITDA.
Talk about a game changer.
I set out to change the social fabric of society with my EdTech. In my own way, I made a difference.
But what if?
What if I could tell my younger self the seven specific things that took me thirteen years to figure out?
I’ll never know, but I can imagine by the larger impact I could have made to change more lives.
Success in life is knowing what to do, but also what not to do.
Both are important.
Your journey brings its own unique set of challenges.
But what if?
What if you could leverage my failures into your biggest success?
Wonder no more.
Read and prosper as you learn the seven specific things you must do to increase the value of your business.
Have Your Company Run Without You To Insanely Increase The Value Of Your Business
You get in life what you have the courage to ask for – Oprah Winfrey
Here’s a loaded question for you.
Do you want to be happier and richer?
If you answered “yes,” and of course you did, you better figure out how to have your business run without you.
Most entrepreneurs fail when it comes to having their companies run without them.
Once I figured out that my customers and company were better off without me “in” the business, I never looked back.
My biggest innovations and game changers came once I had my team run the day-to-day of my business.
Sell your business or keep it forever, you’ll have a better company when you’re not needed day-to-day.
Having a management team that runs the day-to-day of your business does three things for you.
First, it gives buyers confidence that your business will be around once you’re gone.
Second, your team thrives knowing there are more opportunities and money for them.
Third, and most important, you have peace-of-mind and a life.
When you can work on the business, instead of in the business, you can create a market disruption and win.
Know this, and know this well.
Have your company run without you to insanely increase the value of your business.
Prosper And Win When You Hire An Investment Banker Early To Increase The Value Of Your Business
No one can whistle a symphony. It takes a whole orchestra to play it – HE Luccock
Prosper and win when you hire an investment banker early to increase the value of your business.
Conventional wisdom tells you that investment bankers are for selling your business.
As usual, both conventional wisdom and the so-called experts are wrong.
Why would you spend time and money on an investment banker when you’re not ready to sell your business?
Because you’ll save time and make more money.
I learned this lesson late in the game and paid the price, but you don’t have to.
As an aside, most buyers hope you make seven mistakes that will lower the value of your business. Not hiring an investment banker is at the top of the list.
Why hire an investment banker before you’re ready to sell?
Investment bankers offer knowledge, contacts, and industry insights that you don’t have.
The golden seal of approval from your investment banker earns you a higher value with buyers.
To your investment banker, you’re a one-time transaction.
Your future buyer will do many transactions with your investment banker.
Will your investment banker burn a bridge with your future buyer on your account?
Not a chance.
Get in early with an investment banker so you can increase the value of your business to prosper and win.
Do yourself a favor. Check out my article how to dominate and win when you know how to choose an investment banker.
Increase The Value Of Your Business (A Lot) Through A Revenue Sharing Business Model
I’m always doing things I can’t do, that’s how I get to do them – Pablo Picasso
My EdTech started with a business model that was fee-for-service.
The truth is, my business model sucked, and so does yours.
But know this.
Increase the value of your business (a lot) through a revenue sharing business model.
My EdTech profits went off the charts when created a revenue-sharing business model.
If you plan to sell your business, higher profits lead to a higher valuation.
On the flip side, keep your business and live the dream with higher profits.
Either way, you win.
Go from a one-time transaction to a subscription model.
Subscriptions are the future, and the future is here. Netflix and Spotify can tell you all about this.
A subscription business model gives you predictability on cash flow through repeat business.
Next, figure out how to move to a subscription model based on revenue sharing.
Easier said than done.
Why would your customers share their revenue?
End your customers’ pain by solving their most painful problem.
My EdTech helped cash-strapped universities fill the seats with no risk.
It took my EdTech half a decade to figure out the problem and solution. But it was worth it.
My 9-figure exit and 13 times EBITDA, in large part, came from my revenue sharing model.
Go forth and prosper!
Run Like A Cockroach Startup To Increase The Value Of Your Business
Do more with less – Anonymous
Want to increase the value of your business to retire rich and happy?
Quick, what do Google and Facebook have in common?
Before each company took over the world, they started as cockroach startups.
A cockroach startup is a company that bootstraps its way to success.
Resourcefulness, and not resources, rule the day.
Why run like a cockroach startup/
Cockroach startups act like their existence depends on each customer. Because it does.
As a cockroach startup, profits are everything. To generate profits, you better have a small team that walks on water.
You live and breathe your offering. Your entire company is all about customer service.
Customer service that creates raving fans has your company win, and win big.
Is bootstrapping easy?
Not a chance.
But know this, and know this well.
My EdTech ran like a cockroach startup and dominated the industry.
My well-financed competitors were rolling in money and had resources that I lacked.
But I had the resourcefulness that my competition lacked.
Resourcefulness trumps resources. All day. Every day.
Increase the value of your business by running like a cockroach startup.
Create A Blue Ocean Strategy To Win And Prosper
Why fit in when you were born to stand out? – Dr. Seuss
Looking to increase the value of your business?
Create a blue ocean strategy.
What’s a blue ocean strategy?
Being different than everyone else.
Why be different?
Solve painful problems that affect many people who will pay you to take the pain away.
When you take the pain away for customers AND you’re the only one who’s doing it, you name your terms.
Timing is everything.
Thinking about starting a search engine?
You’re late to the party and will fail.
My first blue ocean strategy was to get schools online. My EdTech, Embanet, was one of the first.
When other competitors started to enter, I was already on to my next blue ocean strategy.
Embanet, version one, kept students in the seats instead of dropping out.
Embanet, version two, filled the seats with students on behalf of universities.
When I sold Embanet, I was working on version three which was to go international.
The blue ocean strategy kept Embanet thriving and prospering.
Buyers placed a premium on the company for its profits as well as the bright future ahead.
If you want to increase the value of your business, create a blue ocean strategy.
Win The Day By Preparing Your Own Virtual Data Room
Thorough preparation makes its own luck – Joe Poyer
When you prepare your virtual data room you increase the value of your business.
Most business owners don’t follow this advice at their own expense.
What’s a virtual data room, you ask?
A virtual data room stores your financial statements and other sensitive company information.
Prospective buyers access your information through your secure virtual data room.
Your investment banker usually helps you assemble and create your virtual data room.
Why go to the time, trouble, and expense to create and assemble your virtual data room?
The simple answer is that you’ll have a higher company valuation.
Part of the due diligence process in creating a virtual data room is to find the “skeletons” in your closet.
First impressions count.
When you find and fix those “skeletons” in your closet, you come with a clean slate to your investment banker.
You’ll impress your investment banker and create more confidence in your company.
More confidence from your investment banker creates more confidence with your future buyer.
You get the point.
I didn’t know this strategy or deploy it when I sold my company.
I will tell you, without a doubt, it lowered my valuation. Even with a 9-figure exit and 13 times EBITDA.
If you want to increase the value of your business assemble your virtual data room.
Focus On Profits, Not Revenue, To Increase Your Business Value (A Lot)
We are what we repeatedly do. Excellence, then, is not an act but a habit – Will Durant
If you’re looking to increase the value of your business, look no further than your profits. Not your revenue.
Conventional wisdom and the so-called experts will tell you otherwise.
As usual, both the conventional wisdom and the so-called experts are wrong.
Whether you sell your company tomorrow or you decide to keep it forever, always focus on your profits.
Give me a choice for my company to be either the largest in the industry or the most profitable, profits win.
When you want to increase the value of your business, knows that the bottom line is the bottom line.
A quick question for you.
What would you think of a company that generates $100 million in revenue per year?
Chances are, you think it’s a great company.
What would you think of the same company if I told you its expenses are $105 million per year.?
That’s right, the $100 million dollar company lost $5 million.
Know this, and know this well.
When you want to increase the value of your business, stay focused on your profits.
Interested to know how to increase the value of your business so you can change lives and live the dream?
Chances are, this is why you started your business in the first place.
Success in business, and in life, is knowing both what to do and what not to do.
But where do you start and what do you do if you want to increase the value of your business?
That’s the question I asked myself when I started my EdTech right out of school with no money, experience, or team.
It took thirteen grueling years of trial-and-error.
But it was worth it.
My business playbook comes from my in-the-trenches experiences. The playbook I developed helped me generate a 9-figure exit based on 13 times EBITDA.
In this article, I’ve shared the seven specific things you must do to increase the value of your business.
Some of the strategies I’ve shared are ones I learned after-the-fact.
As a result, I left money on the table from not knowing some of these strategies before my exit.
But my loss is your gain.
Start today with the first strategy, put in place it and master it. When you’re done, move on to the next one until you’ve mastered all seven.
Whether you keep your company forever or sell it, you’ll have a more profitable business.
You win either way.
So what are you waiting for?
Go forth and prosper.
Here’s to you and your success.
Your Biggest Raving Fan,