Hi, Matt Stefanik here, and in this video I'm going to be discussing How to Build a Sellable Asset.
There are two books that after reading prompted me to part ways with my partner at the time and start all over from scratch.
And we were making really good money at the time!
We had a digital course we were selling discussing how we were making money with affiliate marketing and also selling t-shirts on Teespring.
With webinars alone and zero affiliates we generated over $200,000 in sales in under 2 months with the course alone.
This is in addition to the affiliate launches we participated in and the selling of the shirts on platforms such as TeeSpring and Represent.
We also had a thriving coaching business on top of that, where clients paid us $5k/month to take them by the hand and show them how we did it all.
So why would I want to walk away from that, you ask?
Well, I blame John Warrilow, author of the two books I'm about to share with you.
These two books changed my business and they changed my life, and now I want to share them with you.
Here we go, the first book is "Built to Sell: Creating a business that can thrive without you."
The Second, "The Automatic Customer" which is all about how to build a subscription-based business and the critical important of doing so.
So I asked myself.
Does my business have a monthly recurring offer?
Can my business run without me?
If I stop, it stops.
We must build it again.
So I called my partner and told him my thoughts and ideas.
He did not want to change our business model.
I'm gonna burn this mother down, and he was like you better not. You better not.
But I did. And although it was a very tough decision, it was the best thing I've ever done.
He was not happy, but he understood.
So, think about your business and ask yourself those same two questions.
Does it have a recurring revenue and can it run without you.
If it does not, you most likely will never be able to sell it.
You might be saying, but I don't want to sell it.
Perhaps you're building a legacy business that you want your children and grandchildren to eventually own.
I think that's great.
If that's the case, you need to ask yourself is it recession-proof, and will advancements in technology eventually make us obsolete.
Look I know these are not fun questions to think about, but they're crucial for the longevity of your business.
If you look at some of the massive exits in the startup world, you can see several common components of these business.
- They've got perfect product market fit
- They've got a massive total addressable market
- They're scalable
- They serve a purpose, solve a problem, or fill a void.
- And, most importantly, they've got recurring revenue and a business model that can run without the founders.
I know, we're not all going to be able to get bought out by Paypal, Amazon, or some other massive company that has more money than they know what to do with, but why not do everything you can to give yourself that chance.
Now don't get me wrong. I used to think this was the ONLY way to build a business and if you weren't building a sellable asset you're doomed to fail or become obsolete.
I was wrong.
The important thing is to recognize that if you just can't make your business fit the mold, that you use your business as a vehicle to fund the purchase of other sellable assets like real estate, stock, and other investments. We obviously should be doing this anyway but it's even more critical if your business can't run without you or it's not something that is likely to be sold.
Remember, it's not about getting a ridiculous exit number, it's about the impact you'll be able to make with it.
Remember your mission.
Never forget that.
So there you have it, pick up these two books, "Built to Sell" and "The Automatic Customer" both by John Warrillow and adjust your business and processes accordingly.
I'm Matt Stefanik, bye for now...