Want to sell your company?
8 frameworks that can make you incredibly rich:
8 frameworks that can make you incredibly rich:
Rule of 3
Anything that you do more than 3 times that has more than 3 steps, document it.
This creates an SOP database.
If you don't have systems and processes, you have a job, not a business.
Anything that you do more than 3 times that has more than 3 steps, document it.
This creates an SOP database.
If you don't have systems and processes, you have a job, not a business.
KPI Scorecard
Make it easy to see the important levers in your business.
KPIs, (key performance indicators) should be shown:
• Daily
• Weekly
• Monthly
The longer the history, the more derisked the purchase.
Make it easy to see the important levers in your business.
KPIs, (key performance indicators) should be shown:
• Daily
• Weekly
• Monthly
The longer the history, the more derisked the purchase.
Justify Your Spend
Some companies don't even have a P&L, so you're winning.
But also show why you spend.
Where is your spend vs your competitors?
Some companies don't even have a P&L, so you're winning.
But also show why you spend.
Where is your spend vs your competitors?
Lower the debt higher the price.
Keep your overall debt-to-income ratio at or below 43%.
It varies wildly by industry and size but...
If you leave room for them to add debt you'll make more.
Keep your overall debt-to-income ratio at or below 43%.
It varies wildly by industry and size but...
If you leave room for them to add debt you'll make more.
No Clients as Kingmakers
You don't want any single customer to be more than 15% of the revenue for your business.
Single client risk kills a lot of deals.
Diversify.
You don't want any single customer to be more than 15% of the revenue for your business.
Single client risk kills a lot of deals.
Diversify.
No Platform as Savior
Get all your traffic from Instagram?
What if your account gets shut down?
Single platform risk means decreased multiples.
Run a traffic gap audit and figure out how to diversify.
Get all your traffic from Instagram?
What if your account gets shut down?
Single platform risk means decreased multiples.
Run a traffic gap audit and figure out how to diversify.
Clean vs audited financials
Option 1 Clean: You ask your accountant to create a financial statement.
Option 2 Reviewed: Accountants review your financials to add a layer of confirmation.
Option 3 Audited: Accountants certify your financials at their liability.
Option 3 wins.
Option 1 Clean: You ask your accountant to create a financial statement.
Option 2 Reviewed: Accountants review your financials to add a layer of confirmation.
Option 3 Audited: Accountants certify your financials at their liability.
Option 3 wins.
Budget Like Brushing Teeth
Be consistent.
What are you going to spend and make for a year?
Then track your actual performance.
Be consistent.
What are you going to spend and make for a year?
Then track your actual performance.
The less variance between the two...
More likely you'll get a valuation based on your forward-looking projections.
Not your last 12 months.
More likely you'll get a valuation based on your forward-looking projections.
Not your last 12 months.
If you prep a biz for sale like this you'll make more, I can pretty much guarantee.
If you run a biz like this regardless my statement still stands.
If you run a biz like this regardless my statement still stands.
Follow me @Codie_Sanchez for more on business, money, and investing.
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If you like threads like this, you might enjoy our upcoming webinar (9/22 - 2 pm CST):
• Cashflow Investing
• How to trade time for money
• Replace your 9-5 Income
• Passive income & revenue streams
Learn all of these frameworks, even in a Recession
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• Cashflow Investing
• How to trade time for money
• Replace your 9-5 Income
• Passive income & revenue streams
Learn all of these frameworks, even in a Recession
contrarianthinking.co
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