KNOWLEDGE BOMB: Running Your Business As if You Were Going to Sell It In 3 Years

Show Notes

Clay and Doctor Zoellner share what steps you would need to take if you were going to sell your business in 3 years including raising prices, cutting ineffective advertising, negotiating a better deal on credit card fees, etc.

  1. If you knew you were going to sell your business in 3 years, how would you change your business practices?
    1. You want to try to increase your profit as much as possible
    2. Tighten up your books
    3. Earnings before interest, tax, depreciation and amortization (EBITDA)
  1. You can’t just cut costs because you would cut revenue.
    1. Increase prices by 1 to 3%
      1. Your vendor’s are going to increase their prices so why don’t you? If you don’t, your margins will slowly get smaller and smaller.
    2. You can get into a drift on things like prices. You have to step in and check on things regularly. Check on your vendor’s regularly.
    3. Look to cut/reduce
      1. Non-Essential Employees
        1. Every April I played a fun game.
          1. In the first quarter we have our busiest quarter.
          2. I tell my managers to go find your weakest employee and fire them.
      2. Jackassery
        1. The average American employee is wasting an average of an hour per day by doing nothing.
        2. In order to eliminate this, you should install cameras, record calls and hold everyone accountable by following up.
          1. This is a way to find the good employees not make good employees.
        3. You have to police them a little bit
      3. Networking Events / Memberships
        1. Local chambers
        2. Associations
        3. You’re going to get one opportunity to sell that business. You need to focus on how you’re spending your time.
        4. You run a lot of personal stuff through the business to make it look like business stuff. Clean that stuff up. You will only sell the business once and you have taxes every year.
      4. Advertising That Doesn’t Work
        1. I cut an ad that didn’t work today
      5. Credit card fees
        1. You can negotiate those fees
        2. Shop around
        3. If you can pay 1% rather than 3% then that is incredible
  2. But you would want to be more lean. Are there any tricks or tips?


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Audio Transcription

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