How to Build Your Company

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Following your dreams is crazy-cool-oh-yeah, but then there's also that practical side:

  • Ensuring you'll live that dream forever-and-&^%^!-@^^%-day.

How do you do it? Do it by building your business like you're gonna sell the sucka. (Even if you'll never sell your business.) We'll explain.

The "Sell My Business" Mindset

Why do private equity companies ridiculously increase their firms' values over a short time? According to a recent HBR entry by Goold and Barber, private equities use the "build-the-sucka-to-sell-the-sucka" approach. That is:

  1. They buy high-potential companies.
  2. They pimp them out.
  3. They sell them for high profit -- ASAP.

Private equities know they better deliver something awesome that's promising both short-term/long-term -- or risk their futures.

The Benefits

Over a short period of time, private equities:

  • Place people where they'll thrive.
  • Get dope advice from the brightest.
  • Cut bureaucracy inch-by-inch.
  • Cut communication with costly customers.
  • Bargain with vendors further.
  • Automate repetitive tasks.
  • Write ridiculously-detailed operation manuals.
  • Seek growth opportunities.
  • Yadda, yadda, yadda, yadda.

Result: Freakishly fattened value provided to their firms.

Build-to-Sell Mindset = Sexy Profitable

Adopting the build-to-sell mindset gets you focused on the more profitable aspects of your business (i.e. the bigger picture). Because your mindset tells you:

  • "I have to build my business where if hand it off, it'll still rock as if I'm not there!"

You automate your business's profit machine to continually churn bla-bling without your presence. That makes your business more adaptable for growth, cuts costs, and increases its agility.

Exponentially Awesome

With (1) exponentially reduced time spent, (2) exponentially reduced money invested, and (3) exponentially reduced energies expended, what do you get? Exponentially increased value/profits/sales/yadda. Shabam!

"So, how do I start?!"

Challenge yo-self:

  1. You have 7 days to sell your business.
  2. What would you do?
  3. Ready. Set. !@^^% Go!

(You'll surprise yourself to your business's true potential.)



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Posted on September 17

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