11:07:23 - This week in The Hub - Main Street Weekly
11:07:23 - 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 …
7 Red Flags When Evaluating a Potential Acquisition Partner
In the world of entrepreneurship, choosing the right business partner for growth can be a make-or-break decision. A merger or acquisition (M&A) can bring fresh perspectives, diversify skill sets, and increase the financial backing needed to achieve bigger goals.
However, the risk of failure is high, between 70 and 90 percent by some estimates. One reason is that business owners often miss critical red flags. (581 words) Read more here…
To Realize M&A Value, Avoid These Three Pitfalls
While the rapid rise in interest rates has frozen credit markets and therefore the pace of merger and acquisition activity, it has also created buying opportunities for banks with strong balance sheets as other financial services companies rationalize products, portfolios, and investments.
That said, achieving deal model valuations with a high cost of capital requires companies to nail integrations. So more than ever, acquirers need to squeeze every ounce of value from technology, data, people, and customers while effectively managing risk, compliance, and finance. (615 words) Read more here…
How to Scale Your Small Business: Best Advice From an Expert
For all the challenges that come with starting a business, scaling one is often even harder. That’s when you’ve established your business, have regular customers and clients, and have something to lose if you can’t sustain and scale it.
To learn more about the common challenges small business owners face when they’re ready to expand, I talked to Heather Sperduto, the VP of sales operations-accountant channel at ADP. Sperduto is also ADP’s small business expert and shares her insights into the key strategies small businesses can adopt to effectively manage growth and expansion. (1023 words) Read more here…
Managing Rapid Business Growth: 13 Tips for Strategic Expansion
Rapid growth is an exciting phase for any small business, as it reflects success, increased opportunities, and the potential for greater impact. However, managing the transition from a one-person operation to a team of 25 or 50 employees can be a daunting task. Here are some practical tips to help small businesses effectively manage their expansion. (1093 words) Read more here…
How To Build Sustainable Business Growth Through Strategic Networking
In the ever-evolving landscape of business, achieving sustainable growth is the holy grail for entrepreneurs and executives alike. While there are numerous strategies and tactics that can contribute to this goal, one often overlooked yet incredibly powerful approach is strategic networking. (996 words) Read more here…
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In the Pods Reviews …
How I’ve Sold $1 Billion In Products Online (A Marketing Masterclass) — My First Million
Read the review here. Watch the podcast here.
The Hub Short Take:
Craig Clemens shares his expertise on marketing and reveals the seven human hijacks that marketers use to sell over a billion dollars of products online. He discusses the power of demonstrations, the importance of making it about the customer, and the impact of changing daily behavior. Clemens provides examples of successful marketing campaigns throughout history, including the toothpaste campaign that made brushing a daily habit, the elevator demonstration that made elevators safe, and the orange juice campaign that made it a staple of breakfast. He also highlights the role of rebellion and feeling superior in marketing, as well as the power of creating events and using unquestionable proof.
The Takeaways:
Successful marketing campaigns tap into human psychology and use demonstrations, unquestionable proof, and events to capture attention and change behavior.
Making the product about the customer and addressing their desires and needs is crucial for effective marketing.
Rebellion and feeling superior can be powerful motivators for consumers.
Changing daily behavior can have a viral effect and lead to long-term success.
Demonstrations and powerful visuals can leave a lasting impact on consumers.
The Quotes:
“Marketers created so much of our daily behavior that people don’t even want to accept it.” — Craig Clemens
“Help them rebel or feel superior.” — Craig Clemens
“Change daily behavior to create something big.” — Craig Clemens
“Humans love physics. We’re obsessed with physics.” — Craig Clemens
“Humans brain has the same attention span as a gold fish” — Craig Clemens
The Guest:
Craig Clemens is a highly successful marketer and copywriter who has built a billion-dollar company without any outside investors. He is known for creating hit after hit and has been instrumental in shaping the marketing landscape.
The Host:
A podcast where Sam Parr and Shaan Puri brainstorm new business ideas based on trends & opportunities they see in the market. Sometimes they bring on famous guests like Mr. Beast, Rob Dyrdek, and Sophia Amoruso to brainstorm with them.
How to Sell My IT/MSP Company: Insights from Tim Mueller | How2Exit E156
Read the review here. Watch it here.
The Hub Short Take:
In this episode, Tim Mueller, President of IT ExchangeNet, shares valuable insights on how to prepare for and navigate the process of selling an IT company. He discusses the key factors that sellers need to have in order, including legal and financial documentation, a strong management team, and well-documented processes. Tim also explains the step-by-step process of selling an IT company, from initial contact to closing the deal, and highlights the importance of maintaining confidentiality throughout the process.
The Takeaways:
Sellers should have their legal and financial documentation in order, including operating agreements, board minutes, and properly categorized financials.
A strong management team is crucial for buyers, as they want assurance that the business can continue to thrive after the seller's departure.
Contracts with recurring revenue, such as managed service provider contracts, are highly attractive to buyers and can increase the value of the business.
Sellers should be prepared to provide detailed information about their sales and marketing processes, including prospecting, communication, and customer retention strategies.
The due diligence process can be time-consuming and requires sellers to gather and provide extensive data and reports to potential buyers.
The Quotes:
"We want to keep the confidentiality very close. And only when an NDA is signed by a buyer could he or she then learn the identity of the seller." - Tim Mueller
"The better buyers will go in deeply... to ensure that the day after the transaction is closed, there are no surprises." - Tim Mueller
"The more you can show that you are in tune with ways to get in front of potential clients, the more buyers will realize that you are a machine." - Tim Mueller
The Guest:
Tim Mueller is the President of IT ExchangeNet, a subsidiary of Martin Wolf M&A Advisors. With over 25 years of experience, Tim specializes in helping IT companies, particularly those in the smaller mid-market, navigate the process of selling their businesses.
The Host:
Currently Ranked #1 M&A Podcast on the planet by Feedspot, How2Exit Interviews of M&A industry experts and mentors from around the world: US, London, Australia, etc. We talk about acquisitions and mergers of small to medium businesses, We speak with Mentors and authors who teach the ins and outs of buying, growing, and selling small to medium businesses. I also interview brokers, buyers, attorneys, investment bankers, family office owners, and even business owners looking to sell.
Tommy Mello | Building Wealth by Investing in Recession-Resistant Businesses | A Better Life with Brandon Turner - E34
Read the review here. Watch it here.
The Hub Short Take:
Tommy Mello, the founder and CEO of A1 Garage Door Service, shares his journey from a kid shoveling snow to building a $100 million home service company. He emphasizes the importance of hard work, delegation, and building a strong team. Tommy discusses the misconceptions around wealth and the importance of enjoying every minute of every day. He also shares his insights on the home service industry and the keys to success in building a profitable business. Tommy highlights the significance of reading, networking, and taking calculated risks. He encourages entrepreneurs to prioritize time and invest in hiring the best people to maximize efficiency and productivity.
The Takeaways:
Work hard, delegate, and build a strong team to grow a successful business.
Focus on providing exceptional service and creating memorable experiences for customers.
Money is not inherently bad; it’s the love of money that can lead to negative outcomes.
Building a strong network and connecting with influential people can open doors to new opportunities.
Reading is a powerful tool for personal and professional growth.
Wealth and success can be enjoyable and fun, contrary to popular belief.
Focus on profit, not just revenue, when evaluating the success of a business.
Your network and relationships are valuable assets in business and life.
Take calculated risks and be willing to fail in order to achieve success.
Prioritize time and invest in hiring the best people to maximize efficiency and productivity.
The Quotes:
“Money is not bad; it’s the love of money that is the root of all evil.” — Tommy Mello
“Your net worth is determined by your network.” — Tommy Mello
“The love of money is the root of all evil, not money itself.” — Tommy Mello
“Enjoy every minute of every day and mix business with fun.” — Tommy Mello
“Focus on profit, not just revenue, to build a successful business.” — Tommy Mello
The Guest:
Tommy Mello is the founder and CEO of A1 Garage Door Service, a multi-million dollar home service company with over 700 employees across 20+ states. He is known for his expertise in the home service industry and his success in building a thriving business.
The Host:
Brandon Turner is a real estate investor, podcaster, author, entrepreneur, and speaker. As the host of the BiggerPockets podcast with over 100 million downloads, Brandon is widely recognized as one of the foremost experts on real estate investing.
On this show, join expert guests — from business moguls to fitness gurus, from real estate tycoons to relationship experts and beyond — to learn how to unlock success and build wealth without sacrificing your health and relationships.
Starting, Growing, And Selling Small Businesses: Christine McDannell’s Entrepreneurial Mastery
Read the review here. Watch it here.
The Hub Short Take:
Christine McDannell, founder of The Magnolia Firm, shares her insights on building and selling successful businesses. She emphasizes the importance of thinking about the future in the present and journaling goals to make them a reality. Christine discusses her journey as a serial entrepreneur and the pivots she made along the way. She highlights the significance of prioritizing profit, hiring and retaining A-players, and building a strong reputation. Christine also provides valuable advice for small business owners who are planning to exit their businesses in the future.
The Takeaways:
Journaling goals helps make them a reality by engaging the subconscious mind.
Prioritizing profit and focusing on the bottom line is essential for business success.
Hiring slow and firing fast is crucial for building an exceptional team.
Building a strong reputation through excellent customer reviews and media coverage is key.
Planning for the future and working towards a successful exit is important for long-term business success.
The Quotes:
“Journaling every day what I’m grateful for, and my future goals helps make them a reality.”
“Hire slow and fire fast to build an amazing team of A-players.”
“Your reputation is hard for a buyer to fix, so focus on building a strong one.”
“Work on your business, not just in your business, to maximize its value.”
“It is worth the hard work and sacrifices to achieve the freedom and success of entrepreneurship.”
The Guest:
Christine McDannell is a serial entrepreneur, author, and speaker. She is the founder and principal business intermediary of The Magnolia Firm, an M&A brokerage firm specializing in helping digital business owners achieve successful exits. With over 20 years of experience in founding, growing, acquiring, and selling businesses across various industries, Christine is passionate about helping entrepreneurs achieve their dream business exit.
The Host:
Michael Morrison is a small business coach and podcaster, this podcast they “provide expert advice, tips, and strategies to help small business owners achieve success. This channel shares insights on small business strategy, goal setting, time management, mindset, company culture, marketing, sales, operations, finance, management, systems and processes, and more.”
Selling to a Search Fund with 37th and Moss | Defenders of Business Value - E102
Read the review here. Watch it here.
The Hub Short Take:
Nick and John discuss the search fund model and how they operate as entrepreneurs looking to acquire and operate businesses. They explain the origin of the name 37th in Moss and their focus on B2B services and technology companies. They emphasize the importance of building relationships with business owners and being transparent about their intentions. They also discuss the benefits of long-term hold strategies and the value they place on the existing team within a company.
The Takeaways:
The search fund model has grown rapidly in recent years, with different approaches and structures.
37th in Moss is a traditional search fund that focuses on B2B services and technology companies.
Building relationships with business owners and being transparent about intentions is crucial.
Long-term hold strategies allow for sustainable growth and compounding wealth.
The existing team within a company is valued and relied upon for continued growth.
The Quotes:
“We’re operators with entrepreneurial experience, but we’re also folks that have experience with financial services.” — Nick Smith
“We want a business that has a good team, and we don’t intend to introduce change to the team.” — John Washington
“Getting your business ready for sale can maximize its value when the eventual transition happens.” — Nick Smith
“Understanding unit economics helps make strategic decisions that benefit the business.” — John Washington
The Guest:
Nick Smith and John Washington are the founders of 37th in Moss, a traditional search fund focused on acquiring B2B services and technology companies. They have a background in software engineering and entrepreneurship, and they are passionate about small business ownership and operation.
The Host:
The How to Sell a Business Podcast combines 30 years of exit planning, valuation, and exit execution working with business owners. Ed Mysogland has a mission and vision to help business owners understand the value of their business and what makes it salable.
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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
How To Start A Business In 11 Steps (2023 Guide)
(You may not be starting a business, but many of the points in this guide will help you acclimate when you’re ready to acquire a business, including what questions to ask. It’s worth the short read and even a “save.” So give it a quick look and whenever it has “starting,” just mentally replace it with “buying.” Enjoy!)
Starting a business is one of the most exciting and rewarding experiences you can have. But where do you begin? There are several ways to approach creating a business, with many important considerations. To help take the guesswork out of the process and improve your chances of success, follow our comprehensive guide on how to start a business. We’ll walk you through each step of the process, from defining your business idea to registering, launching, and growing your business. (5462 words) Learn more here…
Time Management Hacks: 5 Tips for Busy Small Business Owners
As a small business owner, you’re likely wearing many hats—juggling everything from product sourcing to inventory management, front-end work, human resources, marketing, and more. With a mile-long to-do list, it’s all too easy to give into "the overwhelm," especially if your personal life is a little out of sorts as well.
A few years ago, I ditched a corporate job I loved to pursue my true calling: starting a small business. Yes, this move allowed me to spend more time with my family while growing my business, but I’d be lying if I said I didn’t feel overwhelmed in the beginning. (1770 words) Learn more here…
Hey, friends, we could use your help to grow The Hub - Main Street Weekly, and bring it to more people so we can continue to serve you and others. If you like something we shared this week, please share it on X (formerly known as Twitter) or LinkedIn and tag us when you do. Let’s get people talking.
In the BIG Guys Corner … (middle market and above)
Treasury Wine is a $1.6b bet on California’s Daou Vineyards
The chief executive of Treasury Wine Estates aims to turn California’s high-end Daou Vineyards, which is being acquired in a deal worth up to $US1 billion ($1.6 billion), into a global brand like the company’s flagship Penfolds.
Tim Ford said on Tuesday that Daou was generating 98 percent of its sales in the United States, but it had the cachet and quality to go global. Read more here…
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In the Sosh … who to follow this week
Chris Do
As the Founder and CEO of The Futur, I have over 27 years of experience in brand design, strategy, and consultancy, working with clients such as Microsoft, Sony, Nike, and Starbucks. I am passionate about helping people realize their value and communicate it to others, whether through design, content, education, or coaching.
Connect with her on LinkedIn and her website.
Russell Brunson
Russell has been featured on major publications and websites such as Forbes, Entrepreneur Magazine, and The Huffington Post. He is also the host of the #1 rated business podcast, Marketing Secrets. In 2018, he was awarded ‘Entrepreneur of the Year’ in the Utah region by ey.com. Russell also regularly works with non-profits like Operation Underground Railroad and Village Impact.
Connect with her on LinkedIn and her website.
In the calendar …
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...
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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