Build your company to sell it...because eventually, you will
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- He had a graphic design small business and was doing everything on his own without leveraging content marketing or systems
- He was told his business was worthless because it was dependent upon him (25 years ago)
- For your business to be valuable, it must be valuable without you
- We think top-line / bottom-line are key, which keeps us on the hamster wheel
- You need to narrow your focus so you can create training programs for your staff and remove yourself from the equation
- Use TVR
- Teachable—can I teach it to my team?
- Valuable—is it valuable coming from me?
- Commodities are not valuable
- Repeatable—how often do customers need to buy it?
- Find one with the ability to sell
Ask your customers "why do you buy from us?"
- Companies make a "build vs buy" decision when they look at buying you
- When you have all the money in the world like McDonald's you can add another revenue stream
- It's not easy to build a subscription but it's worth it
- Recurring revenue drives value
- Security companies have installation and monitoring revenue
- You'll get 75 cents on the dollar for every installation dollar of revenue but you'll get $2 per every monitoring dollar
- How a chiropractor can create a subscription model
- Stop thinking, "I'll make my money when I sell," only to find out they created a job for themselves. Pull your money out as you go.
- Moved to a syndicated research model and sold it to what is now Gartner
- Six different forms of recurring revenue
- Simple consumables like coffee
- Sunk money consumables like a Keurig machine
- Subscription revenue
- Sunk money subscriptions like the Bloomberg terminal for traders who also pay for the subscripption
- Auto-renewal—in perpetuity with a storage facility like Iron Mountain
- Contract revenue is the best—CRM HubSpot subscriptions, etc.
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