Recently, Sohail Khan just signed an 8-figure deal for his IP. Over the years, he knew exactly how to build the value and position himself to be worth over $10m to another company.
When you are a #MillionDollarCEO and you have a vision…it is possible to create a ton of value in your business. So much value in fact, that another business would gladly pay 8-figures to take over a highly profitable business, rather than doing it themselves.
But here’s where most business owners fail. They don’t understand what creates value in a business.
Nope, it’s not your great idea. Nope, it’s not the future potential. And nope, it’s not because you see a market that no one else does. It’s simply this.
They are confident that they will 10x their investment by acquiring you.
This confidence comes from three key elements:
1) You know your numbers. You understand your projected value, your conversion ratios and your asset utilization. You understand exactly what works and what doesn’t work in your business. You know how to project with reasonable accuracy the growth rate of your business because your marketing and sales systems are simple and profitable.
2) You’ve got cash flow. You’re not thinking like a start-up waiting for the next round of seed money to fund a losing operation. You have a proven system that you can turn on or off as you please to generate cash flow. You have a history of earning consistent cash flow, year after year, and are not spending all the cash on your personal lifestyle and draining the company of its resources. You are diligent, persistent and have a good track record.
3) It’s runs without you. YOU are not the value of the company. In fact, the more the company relies on you, the less valuable it is. A buyer wants to see that the system and the people run well without you so they make the transition without disruption. The value is dependent on the ability of your company to be a smooth-running profit machine whether you’re at the beach or snow skiing with your family.
In order to create a valuable and profitable exit strategy, let’s get your numbers in order and start running your business like a fine-tuned machine!
To learn how to grow your business through Joint Ventures and increase the value to over $10m, contact me today (707) 322-2259 and get a seat in our exclusive training.