I’m going to talk to you about ten
things you can do to increase the value
of business but before I do that let me
kind of put things in perspective so you
kind of have an idea why this mindset of
value profit conversations you always
hear about so many people run a business
and by the time the year-end comes with
taxes any profit that the company makes
they like to take it out pay taxes on
and put in their own checking account by
because it’s my profit it’s my business
as – it’s my dad and then there are
those that say then this is what I need
to live off of but let’s let it ride let
it ride let’s grow it let’s let it ride
let’s invest let’s let it ride what is
the difference between the two and why
there’s some do one over the other
here’s a difference profit value short
term long term working in the business
to make money now working on the
business to increase value later now
okay later
instant gratification delayed
gratification the more like a sales
mentality more like a CEO mentality
independent contractor mentality
business owner mentality so this is this
is something you see a lot in business
so you may be wondering yourself in st.
Pat I get it but I want to increase the
value of my business okay what should I
do to increase the value of my business
I got 10 keys for you number one if the
business is based on a technology that
you own that a person a company may have
interest in wanting to buy your company
that that technology can be used in to
their entire spectrum a business that
they’re doing that increases the value
of business especially if you own the
technology if your business has ran on
technology and systems and CRMs and
back-office all these things that makes
things go faster where you know you’ll
typically need 200 employees to do this
but because you have the technology you
only need 45 employees to do this people
who want to buy a company like that and
that increased the value the company
number to focus your focus into what
you’re doing there was once a book
written I read it’s called I think it’s
built to sell
built to sell as a book phenomenal book
I think every entrepreneur running a
business how to read the book built to
sell because what the book tells you is
not to focus on selling your business
for
it’s on getting focused with your
business so what is the product what do
you do hey I’m trying to do this I’m
trying to do this I’m who we do this we
do this so many different things that
you do were to increase the value your
business why don’t you focus it to one
two or three things that you do but
increase your attention on those things
it increases the value of your business
I understand how sometimes it can be
tempting to save a paddock we do more
the value goes higher does not more
focused or the more increase your value
your business number three a business
that’s ran on systems not just you
increases value if I can come into your
company and I walk through and I say
what did she just say on a phone call
right now oh she said this this this
this do you have it on sheet of paper
no we just taught her what if a new
person comes in how does it how do they
learn oh they just sit right next to her
is that typed out no that systems you
don’t have a unit of time okay we’ll
type it up if I come in and you have a
new employee what is a step when a new
employee comes in step number one two
three four five six you don’t have that
you need that if the person buys this
product what’s their next step what do
you do next what do you do follow we
don’t have that we don’t have that
written out these are systems and
procedures businesses built on systems
grow more value because it’s got a life
of its own without the human being
novice you need a driver but the system
takes a business value told it from
level number four strategic partners
what are we talking about with strategic
partners look strategic partners not
only validate the business they increase
the value of the business they have good
things to say about you when it comes on
comes down to it they can bring complete
different aspects to your business that
you may not have yourself so I think
strategic partners play very big role in
increasing value of business number five
is recurrent revenue ask yourself to
business you have right now what part of
it is recurring what do you make every
single month in your business whether
you make a single sale or not recurring
revenue produces the highest multiples
that if somebody buys this book it’s got
the highest multiples next it’s
supporting cast operation operations and
supporting cast who is around you who’s
running the company this is the part
where somebody who is driven on profits
they don’t invest into the people so the
value doesn’t increase I remember many
years ago I was running a sales office
and there were these two guys who were
my competitors
and I’ll never forget a call I had it
was within a week apart with each one of
them and we were doing a cruise contest
something like that I was running for
sales contests and by the time they both
had bigger distributions than I did I
had a smaller one but by the time it was
done they only had six people or four
people they wanted to pay to go because
it was going to cause some $600 or 800 I
said no I’m not going to pay for them
because about that thought that does it
mean you gotta listen to your people so
what I did is I went and paid into it
for 43 people demand their spouse and we
went on the cruise those guys that to
this guy had three we had 43 people
there okay I invested into the people
the level of loyalty we got from them
who were willing to come back and want
to learn more improve more better the
company more was a lot higher that’s
investing into supporting cast that
wants to be in the company so the more
you invest into your supporting cast to
help them get better the more indebted
to they’re more loyal to they’ll stay
with you longer and the value of the
company goes higher the better
supporting cast yeah by the way this
also goes with your executive team who
you bring on board as an executive team
you’re your sales force every single
thing is part of the supporting cast to
grow in the business number seven data
sometimes you you see companies that buy
another company and they cut a big
billion dollar check and he say when a
company’s revenues was only 50 million
year why do they buy check box cutter
check like that because they have access
to a lot of data that they need so if
you have data that increases value of a
business what type of data are you
gathering yourself and how big is it how
wide is it how deep is it that another
person another company could say this is
valuable and it increased the value of
business number eight a bit of versus
neat let me explain what a bit of versus
need is even a stands for earned
I think it’s earned income before earns
earnings before income taxation
depreciation and amortization that’s
what even a stands for right so a lot of
times you’ll hear a company say well why
would we buy your company because you’re
a better and you know if we do the
multiples based on your a better yes
your top-line revenue with XYZ but you
even as
small you know why would we do that
because you’re selling for a bit uh I’m
not solving for a bit I’m solving for
value you’re solving for profit if I
solve for profit I stay flat because I
solve for value I’ve grown quarter after
quarter after quarter as a business
because I’m solving for value so the
more you focus on a need meaning going
to your industry whatever business
you’re in and find a need that exists
that no one’s focused on for us there’s
a need that we have increase the need
where if somebody has an interest in
your business one day it won’t be based
on the e better it will be because this
need will fill another void that they
have that the profits here will go up to
the roof because they locked in a need
here two businesses this one increases a
site that’s about distribution this site
increases the profit this profit that
they make here is well worth they’re
paying for the company the value of the
company because you’re solving for need
not just for able to although you still
need to have profits no company that
goes out of business your company’s
worth nothing you do need to have a
focus here but not to the phone where
it’s only short-term instead of
long-term next subscribership and
distribution what is that that’s an
audience you know when you see a company
like Instagram being bought but they
don’t how to make money why they buying
them because they have an audience
there’s a distribution so always focus
on what you can do to increase the
distribution of your business your
company the eyeballs the amount of
people that are seeing that the
subscriber should the customer base it
has something to do with recurring
revenue but it doesn’t there’s somebody
that’s constantly coming to you that’s
logging onto your website like you know
a Huffington Post has subscribership
that people are coming to it an email
subscriber ship a you know anything
that’s enlisting into something that
you’re offering that increased the value
and last but not least a hands on to
increase the value of business I think a
lot of times people take your hands off
the business too early and they become
CEOs too early instead of becoming you
know somebody that’s a businessman that
at the end of the day your job is
increased to value the company and if
you do good job increase in value the
company your CEO your great CEO but
don’t take your hands off too early I’ll
stay on hands on a CEO or an executive
or
tripping or knows about what’s going on
with technology knows about how focused
a product is and if we’re getting
distracted knows about the system it’s
hands-on with the strategic partners
because he makes the calls it’s hands-on
with the recurring ribbon is its hands
on supporting cats its hands down with
the data that’s been gathered it’s
hands-on with the need and the even on
paying attention it’s hands on
increasing distribution and
subscribership always stay hands on to
increase the value of your business
with that being said Lewis throw me a
pillow right there because your buddies
are not here today we got a flight I got
to get on a flight to New York and
Madrid here and I got a few meetings in
New York before going to Madrid anyways
so this is a topic that I went and try
to do in a few minutes because I have a
conference call here myself to do but if
you got questions about it comment on
the bottom about how to increase your
value of your business this is a topic
that is extremely important for you to
pay attention to if you watch it once
watch it again
take notes print out what we have reread
it and find ways on what you’re doing
yourself or your business to increase
the value of your business and if you
have not subscribed to our channel yet
if you haven’t subscribed to Value table
yet please do so click right here to
subscribe we do mr. Lewis click right
next to it to be part of the
notification squad the alert you see
click on that as well and with that
being said have a good one everybody
take care [Music]
things you can do to increase the value
of business but before I do that let me
kind of put things in perspective so you
kind of have an idea why this mindset of
value profit conversations you always
hear about so many people run a business
and by the time the year-end comes with
taxes any profit that the company makes
they like to take it out pay taxes on
and put in their own checking account by
because it’s my profit it’s my business
as – it’s my dad and then there are
those that say then this is what I need
to live off of but let’s let it ride let
it ride let’s grow it let’s let it ride
let’s invest let’s let it ride what is
the difference between the two and why
there’s some do one over the other
here’s a difference profit value short
term long term working in the business
to make money now working on the
business to increase value later now
okay later
instant gratification delayed
gratification the more like a sales
mentality more like a CEO mentality
independent contractor mentality
business owner mentality so this is this
is something you see a lot in business
so you may be wondering yourself in st.
Pat I get it but I want to increase the
value of my business okay what should I
do to increase the value of my business
I got 10 keys for you number one if the
business is based on a technology that
you own that a person a company may have
interest in wanting to buy your company
that that technology can be used in to
their entire spectrum a business that
they’re doing that increases the value
of business especially if you own the
technology if your business has ran on
technology and systems and CRMs and
back-office all these things that makes
things go faster where you know you’ll
typically need 200 employees to do this
but because you have the technology you
only need 45 employees to do this people
who want to buy a company like that and
that increased the value the company
number to focus your focus into what
you’re doing there was once a book
written I read it’s called I think it’s
built to sell
built to sell as a book phenomenal book
I think every entrepreneur running a
business how to read the book built to
sell because what the book tells you is
not to focus on selling your business
for
it’s on getting focused with your
business so what is the product what do
you do hey I’m trying to do this I’m
trying to do this I’m who we do this we
do this so many different things that
you do were to increase the value your
business why don’t you focus it to one
two or three things that you do but
increase your attention on those things
it increases the value of your business
I understand how sometimes it can be
tempting to save a paddock we do more
the value goes higher does not more
focused or the more increase your value
your business number three a business
that’s ran on systems not just you
increases value if I can come into your
company and I walk through and I say
what did she just say on a phone call
right now oh she said this this this
this do you have it on sheet of paper
no we just taught her what if a new
person comes in how does it how do they
learn oh they just sit right next to her
is that typed out no that systems you
don’t have a unit of time okay we’ll
type it up if I come in and you have a
new employee what is a step when a new
employee comes in step number one two
three four five six you don’t have that
you need that if the person buys this
product what’s their next step what do
you do next what do you do follow we
don’t have that we don’t have that
written out these are systems and
procedures businesses built on systems
grow more value because it’s got a life
of its own without the human being
novice you need a driver but the system
takes a business value told it from
level number four strategic partners
what are we talking about with strategic
partners look strategic partners not
only validate the business they increase
the value of the business they have good
things to say about you when it comes on
comes down to it they can bring complete
different aspects to your business that
you may not have yourself so I think
strategic partners play very big role in
increasing value of business number five
is recurrent revenue ask yourself to
business you have right now what part of
it is recurring what do you make every
single month in your business whether
you make a single sale or not recurring
revenue produces the highest multiples
that if somebody buys this book it’s got
the highest multiples next it’s
supporting cast operation operations and
supporting cast who is around you who’s
running the company this is the part
where somebody who is driven on profits
they don’t invest into the people so the
value doesn’t increase I remember many
years ago I was running a sales office
and there were these two guys who were
my competitors
and I’ll never forget a call I had it
was within a week apart with each one of
them and we were doing a cruise contest
something like that I was running for
sales contests and by the time they both
had bigger distributions than I did I
had a smaller one but by the time it was
done they only had six people or four
people they wanted to pay to go because
it was going to cause some $600 or 800 I
said no I’m not going to pay for them
because about that thought that does it
mean you gotta listen to your people so
what I did is I went and paid into it
for 43 people demand their spouse and we
went on the cruise those guys that to
this guy had three we had 43 people
there okay I invested into the people
the level of loyalty we got from them
who were willing to come back and want
to learn more improve more better the
company more was a lot higher that’s
investing into supporting cast that
wants to be in the company so the more
you invest into your supporting cast to
help them get better the more indebted
to they’re more loyal to they’ll stay
with you longer and the value of the
company goes higher the better
supporting cast yeah by the way this
also goes with your executive team who
you bring on board as an executive team
you’re your sales force every single
thing is part of the supporting cast to
grow in the business number seven data
sometimes you you see companies that buy
another company and they cut a big
billion dollar check and he say when a
company’s revenues was only 50 million
year why do they buy check box cutter
check like that because they have access
to a lot of data that they need so if
you have data that increases value of a
business what type of data are you
gathering yourself and how big is it how
wide is it how deep is it that another
person another company could say this is
valuable and it increased the value of
business number eight a bit of versus
neat let me explain what a bit of versus
need is even a stands for earned
I think it’s earned income before earns
earnings before income taxation
depreciation and amortization that’s
what even a stands for right so a lot of
times you’ll hear a company say well why
would we buy your company because you’re
a better and you know if we do the
multiples based on your a better yes
your top-line revenue with XYZ but you
even as
small you know why would we do that
because you’re selling for a bit uh I’m
not solving for a bit I’m solving for
value you’re solving for profit if I
solve for profit I stay flat because I
solve for value I’ve grown quarter after
quarter after quarter as a business
because I’m solving for value so the
more you focus on a need meaning going
to your industry whatever business
you’re in and find a need that exists
that no one’s focused on for us there’s
a need that we have increase the need
where if somebody has an interest in
your business one day it won’t be based
on the e better it will be because this
need will fill another void that they
have that the profits here will go up to
the roof because they locked in a need
here two businesses this one increases a
site that’s about distribution this site
increases the profit this profit that
they make here is well worth they’re
paying for the company the value of the
company because you’re solving for need
not just for able to although you still
need to have profits no company that
goes out of business your company’s
worth nothing you do need to have a
focus here but not to the phone where
it’s only short-term instead of
long-term next subscribership and
distribution what is that that’s an
audience you know when you see a company
like Instagram being bought but they
don’t how to make money why they buying
them because they have an audience
there’s a distribution so always focus
on what you can do to increase the
distribution of your business your
company the eyeballs the amount of
people that are seeing that the
subscriber should the customer base it
has something to do with recurring
revenue but it doesn’t there’s somebody
that’s constantly coming to you that’s
logging onto your website like you know
a Huffington Post has subscribership
that people are coming to it an email
subscriber ship a you know anything
that’s enlisting into something that
you’re offering that increased the value
and last but not least a hands on to
increase the value of business I think a
lot of times people take your hands off
the business too early and they become
CEOs too early instead of becoming you
know somebody that’s a businessman that
at the end of the day your job is
increased to value the company and if
you do good job increase in value the
company your CEO your great CEO but
don’t take your hands off too early I’ll
stay on hands on a CEO or an executive
or
tripping or knows about what’s going on
with technology knows about how focused
a product is and if we’re getting
distracted knows about the system it’s
hands-on with the strategic partners
because he makes the calls it’s hands-on
with the recurring ribbon is its hands
on supporting cats its hands down with
the data that’s been gathered it’s
hands-on with the need and the even on
paying attention it’s hands on
increasing distribution and
subscribership always stay hands on to
increase the value of your business
with that being said Lewis throw me a
pillow right there because your buddies
are not here today we got a flight I got
to get on a flight to New York and
Madrid here and I got a few meetings in
New York before going to Madrid anyways
so this is a topic that I went and try
to do in a few minutes because I have a
conference call here myself to do but if
you got questions about it comment on
the bottom about how to increase your
value of your business this is a topic
that is extremely important for you to
pay attention to if you watch it once
watch it again
take notes print out what we have reread
it and find ways on what you’re doing
yourself or your business to increase
the value of your business and if you
have not subscribed to our channel yet
if you haven’t subscribed to Value table
yet please do so click right here to
subscribe we do mr. Lewis click right
next to it to be part of the
notification squad the alert you see
click on that as well and with that
being said have a good one everybody
take care [Music]
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