If you've resolved to make your company more valuable in the remainder of 2022, you may want to think hard about how your customers pay. If you have a transaction business model where customers pay once for what they buy, expect your company’s value to be a...
Nick Leighton started a marketing agency called NettResults with the idea of helping technology companies access consumers in the Middle East. Based in Dubai, Leighton built NettResults to around $2 million in revenue when he decided to sell. Leighton attracted a...
Ben Kellie got his start in the aerospace industry, helping Elon Musk figure out how to get his rockets to land on a floating barge without blowing up. In 2015, Kellie left SpaceX to start The Launch Company, where they supply hardware parts and consulting to a...
Back in 2006, Michael Kaplan and his partners bought into a Zerorez Carpet and Living Surfaces Care franchise. The business was generating $300,000 in revenue and losing $40,000 a year. By 2019, the company was generating $17 million in revenue when Kaplan and his...
A football defensive coordinator needs to protect against an “end run,” a tactical play where your opponent sends the running back wide around the offensive line to try to evade the oncoming tackle. Just like in football, you have to defend against an end run coming...
Cheryl Contee co-founded Attentive.ly along with Rosalyn Lemieux. Together, the partners offered a Software as a Service (SaaS) app that helped non-for-profit organizations perform “social listening”. Their offering was used by organizations to identify and drive...
If your goal is to build a more valuable company, stop selling your time. Billing by the hour or day means customers are renting your time rather than buying a result, which means that your business model lacks leverage. To grow, you need to either work harder or...
In 1994, Robert Hartline started selling phones in the back of his car. By 2019, he had built Absolute Wireless into a chain of 56 wireless stores and 350 employees. Hartline was able to systematize his business while he grew by creating employee onboarding videos and...
You've likely heard the adage that it is far easier to cross-sell an existing customer a new product than it is to find a new customer. And if your goal is to grow at all costs, then cross-selling makes sense. However, all of that sales growth may not do much for the...
James Prebble co-founded Palladium Digital, a consultancy helping companies think about their digital strategy. The company experimented with various business models until they landed on helping private equity groups get a return on their investments. Private equity...
Henry Hyder-Smith and Steve Denner started UK-based Adestra in 2004. Adestra is a digital marketing software that helps big companies handle email campaigns, among other things. The company grew nicely. By 2016, it had around $9 million in revenue and a client list...
Andrew Gazdecki was born in Detroit and lost his father as a young boy. He and his Mom grew up using food stamps. In College, Gazdecki created an online marketplace for freelancers (think a tiny version of Upwork). He sold his online marketplace for $50,000 and said...
Reoccurring Revenue vs. Recurring Revenue Mike Malatesta built Advanced Waste Services, a company that helped businesses dispose of their industrial waste, to $45 million in annual sales before a fateful lunch changed his life forever. It was with a...
American Horror Story I have met business owners who grew their business to about $1M in revenue, only to fall back to $800K or less. They did not realize that the skills, knowledge, and organizational structure needed to build a business to $1M in revenue must all...
Is it better to own a big chunk of a small business or a minority stake in a big company? It’s one of the fundamental questions all owners must wrestle with. Owning a relatively small slice of a big pie has worked out well for both Elon Musk and Jeff Bezos, who...
Legal Clean Up Before You Market Your Business Sooner or later, most business owners consider the prospect of selling their business. This could be initiated by a prospective buyer asking if your business might be for sale, you might be approaching retirement, or it...
How to get a big Payday when you Sell A business appraisal requires significant knowledge of your business, your industry, your financial situation, your management style, the application of complicated formulas, comparison with similar businesses, knowledge of...
One Hidden Thing That Drives Your Company's Value You already know that your company’s revenue and profits play a big role in how much your business is worth. Do you also know the role cash flow plays in your valuation? Cash vs. Profits A Buyer must write two checks...
When to Sell Your Agency You put a lot of time, effort, and money into building a great agency. You stayed focused on your goals and achieved them step by step. Now you are considering if this is the right time to cash out and begin the next phase of your life. Or,...
The hidden goal of the smartest business owners Here are five reasons why building enduring value should be your most important goal, regardless of when you plan to push the eject button. Enduring Value is personal freedom As long as your business is dependent on...
3 Reasons Not To Diversify How does Vitamix get away with charging $700 for a blender when reputable companies like Cuisinart and Breville make blenders for less than half the price? It’s because Vitamix does just one thing, and they do it better than anyone else. You...
Most business owners have invested considerable time and energy in their business, and the decision to sell the business can be particularly difficult. Unlike most business decisions you make, you only get one shot to get it right, so it pays to know what to expect...
Exit By The Numbers If you are like most business owners you will work until you reach your “number”. Many owners choose their number based on their age, or perhaps a calendar year. If these are your criteria for exiting you may be greatly disappointed when you reach...