10:10:23 - This week in The Hub - Main Street Weekly
10:10:23 - This week in The Hub - Main Street Weekly
What you need to know about buying, growing or selling small to medium businesses. The news, the pods, the social influencers. Curated from the world of SMB (small to medium business)
We do the research and bring you what’s pertinent when you want to grow, scale, buy or sell your first or your next business.
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In the News, Blogs, and AI …
How The Right Phasing Can Accelerate Mergers & Acquisitions’ Success
Those leading through a merger, acquisition, or the like do so to create more value faster. They look for revenues to double or more on the way to returning many times their initial investments. Maybe you’re driving or leading the investment. Maybe you’re leading the business itself or playing a supporting role. In any case, you need an appropriately phased timeline. (832 words) Read more here…
What to Consider If You Want to Grow by Acquisition
Many organizations are asking themselves when it makes sense to invest in homegrown research and development, or if they should consider inorganic growth. Acquisition is enticing because it can often speed time-to-value for product and platform innovation, accelerate new customer growth, expand relationships with existing customers — ultimately driving revenue growth. (735 words) Read more here…
How ChatGPT Can Help You Grow Your Small Business?
In today’s fast-paced digital landscape, small businesses need every advantage they can get to thrive and grow. One such advantage is harnessing the power of AI (Artificial Intelligence) tools like ChatGPT. ChatGPT, developed by OpenAI, is an AI-powered chatbot that can provide various benefits to small businesses. (495 words) Read more here…
Using AI agents as a virtual workforce for automation
Individuals or businesses that find themselves being over loaded in certain areas may be able to utilize the power of artificial intelligence by creating a workforce of autonomous AI agents to help out. The most basic form of an AI agent is typically a rule-based system that follows a set of pre-defined instructions, methods or strategies for making decisions and problem-solving. (611 words) Read more here…
Future-Proofing Your Business with Hyperautomation
Robotic process automation (RPA) is a well-established means of automating repetitive business processes implemented in software. It’s been around since the early 2000s. However since then great strides have been made in machine learning and artificial intelligence. Combined with RPA tools they enable much greater levels of automation of many business processes. This is hyperautomation. It enables automation of a much greater range of business processes than RPA and much deeper integration of automation into those processes, enabling processes to be streamlined end-to-end. (1211 words) Read more here…
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In the Pods …
Alex Hormozi - I Doubled A Business in 60 Days to Show It's Not Luck
View the full podcast here. Read the full review here.
The Hub Short Take
In this episode, the guest shares his experience of doubling the sales of one of his portfolio companies in just 60 days. He explains the five key problems that were holding the company back and how they were able to solve them. The problems included a low show rate, low close rate, organizational issues, and ineffective sales scripts. By implementing targeted solutions for each problem, they were able to significantly improve their sales performance and increase cash flow.
The Takeaways
Show rate, offer rate, close rate, cash collected, and units sold are key metrics to track in a sales-driven business.
Targeting the right audience and optimizing ad campaigns can significantly improve show rates and lead quality.
Multitasking can hinder sales performance, and separating roles and responsibilities can lead to better results.
Sales scripts should focus on deepening the discovery process and addressing objections effectively.
Hiring the right personnel, setting clear expectations, and optimizing sales processes can lead to significant sales growth.
The Quotes
"When you see a problem, see it as an opportunity to increase value."
"Having high-quality data allows you to identify problems and fix them."
"Companies will over-educate on the product and under-educate on the prospect."
"The number of sales you make is directly proportional to how many times you ask."
"Little one percent improvements over time can yield significant boosts in sales."
The Host
Alex Hormozi is not only a business leader, he has penned several insightful books in the business domain. Key publications include "$100M Offers," exploring the art of crafting irresistible offers, and "$100M Leads," aimed at effective lead generation and conversion. His book "Gym Launch Secrets" serves as a guide for aspiring gym owners. Through his writings, Hormozi shares his entrepreneurial journey and expertise. His books continue to guide and inspire many in the business realm.
Ted Egan’s $830 Million Exit: The Secret to His Success — The Deal Room: Aspect Legal -Joanna Oakey
View the full podcast here. Read the full review here.
The Hub Short Take
Ted Egan, a former sheep farmer turned entrepreneur, achieved an $830 million exit by co-founding a company that developed a software algorithm to predict fraud in banking transactions. Despite starting from humble beginnings, Ted’s determination, hard work, and ability to pivot his business model led to his success. He is now using his wealth to give back to the community, particularly focusing on helping children in need.
The Takeaways
Success is not an overnight achievement; it requires hard work and determination.
Building relationships and capitalizing on them is crucial for business success.
Being open, authentic, and adaptable are key traits for entrepreneurs.
Pivoting and adapting your business model can lead to significant growth and success.
Leaving a legacy and giving back to the community is important after achieving financial success.
The Quotes
“There’s no secret recipe, unfortunately. It’s just hard work and no such thing as an overnight success.” — Ted Egan
“It’s really just having the determination to know what you’ve got is a good offering and really just get out there, do the legwork, spend the time face to face.” — Ted Egan
“People from the country are very straightforward, transparent, and authentic.” — Charles Fairley
“Everyone needs to tell their story, and it could be a great big story or a little story, but it has a lot of inspiration behind it.” — Charles Fairley
The Show
“Deal Room” podcast, hosted by Joanna Oakey, serves as a rich reservoir of insights and stories from the entrepreneurial and business landscape. Joanna engages with a diverse array of guests to unravel the intricacies of business deals, exits, and legal facets, providing a blend of inspirational narratives and pragmatic advice to listeners navigating the business realm. Through enlightening discussions, the podcast offers a peek into the real-world challenges and triumphs that define the journey of business leaders and entrepreneurs.
The Guest
Charles Fairlie, the author of “50 Unsung Business Heroes”, and the interview as about the journey of Ted’s business through highs and lows, to his eventual exit, what his life looks like after sale, and the way a book can be used to record the legacy of business owners at exit.
Who they were talking about:
Ted Egan is a successful entrepreneur who grew up on a sheep farm in a small town in Australia. After serving in the Navy, he ventured into the software industry and eventually co-founded a company that developed an algorithm to predict fraud in banking transactions. The company grew rapidly and was recently sold for $830 million.
Turning a Business into a Sellable Asset with Scott Duke, Founder of OpnRoad (Ep. 22)
View the full podcast here. Read the full review here.
The Hub Short Take
Scott Duke, founder of OpnRoad, shares his experience of building and selling his Canadian property management company. He discusses the challenges he faced and the steps he took to make his business a sellable asset. Scott emphasizes the importance of removing owner dependency and building a strong team to maximize the value of a business. He also talks about the emotional detachment and post-sale transition that business owners may experience. Scott then introduces OpnRoad and explains how the company helps lower middle-market businesses prepare for sale and connect with strategic buyers.
The Takeaways
Building a sellable asset requires removing owner dependency and building a strong team.
Vacation rental management companies are highly sought after assets due to their difficulty to build and their competitive advantage.
Many businesses in the lower middle-market are unsellable due to lack of preparation and investment in people and processes.
OpnRoad focuses on serving lower middle-market businesses and helps them prepare for sale and connect with strategic buyers.
The Quotes
“The biggest challenge in building a sellable asset is removing owner dependency.” — Scott Duke
“Vacation rental management companies are difficult to build and have a competitive advantage in the marketplace.” — Scott Duke
“About half of the businesses we evaluate are unsellable assets at their current state.” — Scott Duke
The Guest
Scott Duke is the founder of OpnRoad, a company that provides valuation, sell-side advisory, and buy-side advisory services for North American companies with revenues between $2 million and $25 million. He has founded over 11 companies in the past 20 years and has experience in scaling and selling businesses. Scott is an entrepreneur and an avid extreme sports enthusiast.
The host:
The podcast “Finish Big” is hosted by Mark Dorman and is a venture from Legacy Business Advisors. This podcast takes its inspiration from the critically acclaimed business author Bo Burlingham and his book “Finish Big: How Great Entrepreneurs Exit Their Companies on Top” 1. The primary goal of the podcast is to guide entrepreneurs through the intricate journey of exiting their businesses successfully. It emphasizes the importance of having a well-thought-out exit plan and offers practical advice on how to go about it 2 3 4.
In each episode, listeners are treated to success stories that illustrate exit plans executed right, thus providing practical insights and tips. Through conversations with various entrepreneurs, Mark Dorman delves into their experiences, shedding light on the different facets of exit planning, succession planning, and the transition processes essential for a successful business handover.
Building a Fun and Profitable Portfolio of B2B SaaS Companies with Kevin McArdle | How2Exit - E148
Watch the full interview here. Read the full review here.
The Hub Short Take
Kevin McArdle, CEO of Big Band Software, shares his journey from being a high school math teacher to becoming a successful entrepreneur in the software industry. He discusses the origin story of Big Band Software and its unique approach to mergers and acquisitions. Kevin emphasizes the importance of building a strong company culture and highlights the criteria his team looks for when acquiring businesses.
He also provides insights into the current landscape of the software industry and the opportunities it presents for entrepreneurs. In addition, Kevin and Ronald Skelton explore the risks associated with using homegrown software and the importance of a stable and supportable tech stack. They also discuss the characteristics of Kevin's dream business and the factors that make a business attractive for acquisition.
The Takeaways
Building a great company culture is essential for long-term success.
Big Band Software focuses on acquiring profitable and growing B2B SaaS businesses.
The software industry offers numerous opportunities for entrepreneurs due to its low barrier to entry.
It is important to avoid using homegrown software and instead opt for stable and supportable tech stacks.
Characteristics of an attractive business for acquisition include solid technical foundations, high revenue margins, low customer churn, and a niche industry that is easy to understand.
The Quotes
"Building a great business to sell also means you have a great business to run." - Kevin McArdle
"Entrepreneurship is hard. Leadership is hard. Hiring is hard. But if you can make it work, you've accomplished something incredible." - Kevin McArdle
The Guest
Kevin McArdle is the CEO of Big Band Software, a SaaS holding company that acquires and operates B2B SaaS businesses. With extensive experience in the software industry, Kevin has successfully acquired 45 businesses throughout his career.
The Host
How2Exit podcast interviews industry leaders, authors, business owners, M&A experts, and other influencers to discuss what it’s like to buy, grow via acquisition, or sell your business.
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Founding Member Shout-Out
Shout out to our new founding member, with over 30 years in M&A, this company offers a Resource Center helping you buy good businesses. Very underpriced - get it now before they finish upgrading the site and very likely up the pricing.
Catch the latest issue of Acquisition Aficionado Magazine - a proud sponsor of The Hub! click here
In the Knowledge
Starting a Small Business: Your Complete How-to Guide
The U.S. is home to 33.2 million small businesses, which drive over 43% of GDP.1 If you are looking to start a business, there are key factors to consider—from market research and creating a business plan to scaling your business. These factors are critical to your journey and can make a big difference no matter what stage of the process you are in.
Entrepreneurs who take concrete action can differentiate themselves from competitors, innovate, and grow. For successful entrepreneurs, the execution of the business is often what means the most. (2,366 words) Learn more here…
3 Strategies for Small Business Survival in a Time of Economic Instability
Making the decision to start a small business is no easy feat, but it’s incredibly inspiring that so many people try; in fact, on average, 4.4 million people across the U.S. open a business. And while not all of them succeed, there are a few keys to success that vastly improve their chances.
First and foremost, having the right mindset and a clear path forward are important—these improve prospective business owners’ chances of leading a career and life of fulfillment, both personally and professionally, and are key for staying grounded during challenging periods. (1,113 words) Learn more here…
Pathways to Progress: Accelerating Entrepreneurship & Small Business Growth
The big picture: On Tuesday, September 19, Axios hosted an evening reception in Washington, DC examining the unique challenges faced by entrepreneurs and minority-owned businesses in the U.S. and the policy and business solutions that could offer greater support to these entities. SBA Administrator Isabella Casillas Guzman, Rep. James Clyburn (D-SC) and the founder & owner of The Spice Suite, Angel Gregorio were interviewed by Axios reporters at the event. (407 words) Learn more here…
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In the BIG Guys Corner … (middle market and above)
Lilly Deepens Oncology Pipeline with $1.4B Point Biopharma Purchase
Eli Lilly on Tuesday announced it is acquiring Point Biopharma in an effort to bolster its cancer business with the Pennsylvania-based company’s pipeline of clinical and preclinical radioligand therapies.
Under the terms of the agreement, Lilly will pay $12.50 per outstanding share of Point, representing a 67% premium to the radiopharma company’s 30-day volume-weighted average price. In total, the acquisition has a value of $1.4 billion, payable at its closing. The board of directors of both companies have approved the transaction, and Lilly and Point expect to close the deal toward the end of 2023. (498 words) Read more here…
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In the Sosh … who to follow this week
Lakrisha Davis, MBA
As a LinkedIn Branding Expert, I teach individuals how to get more visibility, leads and sales from LinkedIn through my coaching and course offerings.
Connect with her on LinkedIn or lakrishadavis.com.
Shari Levitin
“As a bestselling author, business growth expert, sales trainer, virtual and live keynote speaker & overall rock star (except for in the kitchen—I can’t cook), my passion for helping others transform their business, their relationships, and their outlook on life has truly been the driving force of my career.”
Connect with her on LinkedIn or ShariLevitin.com
In the calendar …
The Exit Meetup by Flippa, In a City Near You Soon
The Exit Meetup is a local meet-up for like-minded business owners.
Meet others, and talk about growth and the opportunity to buy or sell. Plus, hear from a successful acquisition entrepreneur. This is an informative and entertaining meetup aiming to connect owners and investors in a fun environment. Check it out...
SMB Acquisitions Entrepreneurs Bi-Monthly Networking
A twice-monthly networking meeting where acquisitions entrepreneurs come together online to build teams, share ideas and resources, and help each other succeed. The first and Third Tuesday of each month. Check it out...
Rice's Entrepreneurship through Acquisition Conference - Saturday, October 14 - Houston, TX
The State of Search in the U.S. Conference focuses on search fund entrepreneurs, bringing them together with investors, students, and faculty. By Rice Entrepreneurship Association. Check it out...
10th ANNUAL ENTREPRENEURSHIP THROUGH ACQUISITION CONFERENCE - Wednesday, November 1, 2023 - Chicago, IL
The Booth-Kellogg ETA Conference is an annual event that brings together search fund entrepreneurs, investors, MBA students, faculty, and other participants in the ETA ecosystem to meet one another and share insights into this rapidly growing area. The 10th Annual Booth-Kellogg ETA Conference at the Marriott Magnificent Mile | 540 Michigan Ave, Chicago, IL. Check it out...
Main Street Summit - November 8-9 - Columbia, MO
A festival for SMB owners, operators, and investors.
An immersive two-day experience for small to medium-sized businesses with ~10-500 employees. Choose your own adventure amongst a diverse set of presentations, interviews, debates, workshops, and conversations.
Every business has a birthplace and it’s never too far from Main Street. Check it out...
Capital Camp - May 21-23, 2024 - Columbia, MO
Capital Camp is an upcoming event scheduled for May 21-23, 2024, in Columbia, Missouri. The event is described as a gathering for "curious, kind, and thoughtful investors, capital providers, entrepreneurs, and executives" who are pushing boundaries and breaking new ground. The event spans three days and three nights, offering serious investing conversations in a relaxed setting—think shorts and sandals rather than suits and ties. Attendees can expect interactive programming, a variety of outdoor activities, and an endless supply of food, drink, and entertainment. The event has received high praise from past attendees, with many describing it as the most valuable and best investing conference they've ever attended. Check it out…
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