Posts Categorized: Value Builder System™

Buying a Business to Sell It

  Connie Fenyo started out as an employee at Dye & Durham, a company that makes software for lawyers. She rose to Executive Vice President when she learned her boss was looking to sell the 200-employee firm. Fenyo decided to make a bid. She scraped together all the money she could find, borrowed (in return… Read more »

How To Avoid The Hodgepodge Discount

  Nobody likes paying for a hundred TV channels when all you want is a few, which is why so many people are dropping cable in favor of a subscription to only the select channels they’ll watch. Similarly, no investor wants to buy a business with a hodgepodge of product lines if they can’t figure… Read more »

Why You Should Exit Your Business While You’re Ahead – A Cautionary Tale

The very best time to sell your business is when someone wants to buy it.  While it can be tempting to continue to grow your business forever – particularly when things are going well — that decision comes with a significant downside. Take a look at the story of Rand Fishkin who started his entrepreneurial… Read more »

8 Things That Drive the Value of Your Company

If you’re like a lot of entrepreneurs, you use your Profit & Loss statement as your report card at the end of the year.  You may even use your P&L to figure out what your company is worth by applying a multiple to your profit.  But having worked with and surveyed more than 40,000 entrepreneurs,… Read more »

How To Avoid The Idiot Tax

Kenan Hopkins spent 7 years paying what he calls “the idiot tax”, until he learned the more efficient way to run a business. Kenan Hopkins founded his delivery food service company, Blue Ridge To Go, with no real management skills, no idea how to run a business, a lump of personal credit card debt, and… Read more »

How to Lose $200 Million

You’ll never know the ideal time to sell your company — but in many cases, it’s when someone’s willing to buy it. Rand Fishkin, the bestselling author of Lost & Founder, learned this lesson the hard way when his company Moz received a $25 million dollar offer from HubSpot despite only expecting to do around… Read more »

5 Ways To Package Your Service

If you’re a service provider, it can be difficult to separate the service from the provider. Your customers might demand you, which means you can’t scale your business beyond the number of hours you’re willing to work. In the absence of a point of differentiation, offering generic services leads consumers to evaluate the people doing the work. Referring… Read more »

3 Strategic Reasons Big Companies Buy Small Ones

Ottawa-based phone company Versature was acquired by net2phone in the fall of last year. In this episode of Built to Sell Radio, you’ll hear Versature co-founder Jonathan Moody describe: • The surprising downside of offering too many things • The impact your geographic location can have on the value of your company • How Moody… Read more »

Two Exiting Tips From One Of The Top 40 Under 40

Wind Mobile founder Anthony Lacavera has started 12 businesses, six of which he has exited. His exits have ranged in value from the $6 million he got for one of his recent start-ups to $1.3 billion when he sold Wind Mobile. He did it by following two key tips. Understand what kind of company you… Read more »

How to Get One Million More from PwC

Can a small, 30 employee team make a successful transition to the corporate environment of one of the Big Four auditors (and stay on-board)? Find out  what happens post-sale on today’s candid episode. Ann Bennett was founder of Applied Information Services (AIS) – a first-of-its-kind, PC-based software company that processed K-1s (internal tax forms given to… Read more »