Build A Business That Will Sell For Millions

12 Month Plan

Goals & Valuations

It's important to start with the end in mind. Many people start businesses with the intention of running them forever, but eventually, they may want to move on. By planning for a potential sale early on, you can avoid feeling miserable and sell when the time is right.

When it comes to your goals, it's not just about making as much money as possible. It's also about having the freedom and time to enjoy that money. So, think about your financial goals and how much you'd like to make, but also consider how you can achieve that without being tied to the company forever. Maybe you want to sell in five years, build a strong team, and ensure that everyone who works for you has the opportunity to become a millionaire.

It's also important to think about the transition period. You may not want to stay on for too long after the sale, so consider a timeline where you can smoothly hand over the reins. And finally, think about the legacy you want to leave behind. Make sure you sell to a company you respect and aligns with your values.

Recurring Revenue

This means finding ways to continue getting paid even after you've initially sold your products or services to clients. It's recommended to have at least three types of recurring revenues in your business.

The first type is long-term contracts, which can be divided into three subcategories: retail contracts (like a phone contract), B2B contracts, and government contracts (like a street cleaning company contracted to clean up the streets). These contracts provide stability and consistent income.

The second type is auto-renewal subscriptions, where customers are automatically billed on a monthly or annual basis without needing to manually renew. Think of subscriptions like the Wall Street Journal, which keeps billing you every month.

The third type is sunk money subscriptions or replenishment, where customers purchase a product and also regularly buy additional items related to that product. For example, if you buy an air filtration system for your house, you might also need to purchase air filters every three months. By incorporating these recurring revenue streams into your business, you can create a stable and valuable company that has a higher chance of selling for millions.

Repeatable Sales Process

Focus on building a sales team instead of relying on just one salesperson. This way, you create a repeatable sales process and ensure that sales will continue even if someone leaves. Having a sales leader and a team helps establish credibility with buyers, showing them that your sales will be consistent and reliable.

Next, it's important to measure and manage your sales performance. Keep track of your success rate, the number of people you reach out to, and the total market size of potential clients. This data will not only help you understand your target audience better but also demonstrate to buyers that your business has a solid track record and growth potential.

Additionally, don't forget about sales enablement. Provide your sales team with the resources they need to effectively convince customers that your product or service is worth it. By focusing on these aspects of building a business, you'll create a strong foundation for success and increase the value of your business when it's time to sell.

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