0 (2s):
Lights that spark fire nation. JLD here with an audio master class on exiting rich to drop these vibe bombs. I brought Michelle Tucker on the mic. She is the founder and CEO of Seiler Tucker incorporated as a 20 year old veteran in mergers and acquisitions. She has sold hundreds of businesses. Michelle is also the best-selling author of the book, sell your business for more than it's worth in her latest book. Exit rich is available now for purchase in today for our nation. We'll be talking about why 70% of businesses that have actually been in business for 10 years or more are not going out of business. How you can design a business to sell for a profit in the future.

0 (42s):
The five types of buyers and a business, the S T six PS method, and so much more. When we get back from thanking our sponsors, ready to launch and sell your online course, then you need to tune in for amplify 2021. With Thinkific, this free jam packed event produced by our friends at Thinkific will bring together 20 plus international course creation experts to share their behind the scenes tips and strategies to get you on the fast track to launching a course that will sell, visit thinkific.com/amplify to RSVP today. That's T H I N K I F I C.com/amplify fire nation.

0 (1m 23s):
Are you looking for a step by step roadmap to financial freedom and fulfillment while I have some great news for you? My first traditionally published book, the common path to uncommon success is available for pre-order now visit uncommon success book.com to pre-order today and lock in the incredible bonuses that are going away soon. Uncommonsuccessbook.com. Michelle say what's up to fire nation and share something interesting about yourself that most people don't know.

1 (1m 56s):
Sure. I think most people don't know that I have a huge soft spot, a soft spot in my heart for children. And I have a 10 year old daughter who is my heart, my soul, my love, my heavy thing, but I have really, you know, I give to different charities like St Jude's and I am starting a nonprofit called Tucker teens and taughts and soccer teams. And tots is going to be a nonprofit that focuses on abused and neglected children. We're going to provide entrepreneurial skillsets, entrepreneurial lists, lessons, mentorships, job placements, business partnerships, and even business ownership to these children that are unfortunate because I haven't had, you know, some of the things that that many children have and I've been neglected and abused.

1 (2m 45s):
So a percentage of all proceeds from solid Tucker incorporated will go to taco teens.

0 (2m 52s):
That is fantastic. Michelle, thank you for sharing that. And we're going to transition now into the main focal of our interview, which is exiting rich now, fire nation. You know, I brought the right person to talk about exiting rich because she actually wrote the book exit rich. So she is a absolute expert in this area. And I want to start off by just talking about the fact that 70% Michelle of businesses that have been in business for the past 10 years or more, those businesses are not going out of business. Why is that?

1 (3m 26s):
That's correct. And you know, it's kind of a flip-flop John, because it used to be that 85 to 95% of businesses will go out of business in the first one to five years. Well, now in 2019, when I wrote exit, rich is 70% of businesses have been in business 10 years or longer. This is that out of 27.6 million companies. These businesses will go out of business. And the reason for that is because these business owners have become complacent. They stop aim. Aim is always innovate and market. They stopped innovating and they stop marketing. And the problem is that you have companies like Amazon who has really changed the habits of how consumers purchase products and services.

1 (4m 9s):
And if a business owner is not going to step up and innovate and try to compete with that, then you're going to be out of business. So all business owners must innovate and

0 (4m 20s):
Always innovate in markets. I love that acronym, aim, fire nation always innovate in market. And it's really fascinating when you do a deep dive and you actually think about what Michelle is saying with how Amazon is changing. This world is changing this marketplace. And he said, change fire nation. How us as entrepreneurs are interacting with our customers, with our clients and with each other, with other businesses in general, it really needs to make you sit down and think, where do I need to aim? Always innovate in markets. So Michelle was so many businesses failing right now. When is the best time to sell a business? And then of course, breakdown why

1 (5m 1s):
64 says eight out of 10 businesses will not sell. And the reason that eight out of 10 businesses will not sell because business owners don't plan or exit, they really don't think about selling until an internal or external catastrophic event has occurred. And by then, it's typically too late because your business is typically turning downward. The best time to sell your business is when your business is doing well. And at its peak, the problem is most business owners don't plan or access. So an exit rich I've developed what I call the STG PS exit model. And as for, from day one of starting or buying a business, you should start with the end in mind. So you should plan just like a GPS. When you get in your car and you turn on your GPS, what are you putting on your destination?

1 (5m 44s):
Same thing with your business. You need to put in your destination, what is your desired sales price? If you want to sell your business for $20 million plug in $20 million, then what do you need to know for GPS? You need to know where you're starting from. What is your current evaluation, your current location. If you were $5 million and you want to sell for $20 million, then you need your timeframe. If you want to do this in five years, and you say, okay, I want to sell for five years for $20 million or more $5 million. Now who's going to be my buyers. There's five different types of buyers. You're not going to be able to sell to a first time buyer because they can't afford you. So you can roll them out. You can roll out a turnaround specialists because they buy distressed assets.

1 (6m 24s):
So either a strategic competitor, serial entrepreneur or a private equity group will be buying you. Then you need to know what is their PRI buying criteria? What does the gross revenues have to look like? Where does the EBITDA earnings before interest taxes, depreciation and amortization have to be? And what are the characteristics of the business? Meaning does a business run on all six cylinders? What we call all the solid Tucker six PS

0 (6m 46s):
Fire nation eight out of 10 businesses will not sell. I mean, think about that. 80% of businesses are not going to be sold. And so many of them, I would say probably at least eight or nine businesses that start, start at least wanting or thinking some day they will. But like Michelle just shared, they don't start with the end in mind. You must start with the end in mind. And I love how you developed that system, Michelle, that find it. You can follow along step by step by step so they can start on the right foot. And then of course, and on a high note and on that right foot. So how specifically can new entrepreneurs, we're talking people that are just getting, going, designed their business to sell for a profit in the near term.

1 (7m 30s):
Yep. So first it needs to get their hands on exit rich John, because it is literally a step-by-step blueprint, by the way, it was endorsed by Steve Forbes as well. And so in an exit rich. So we go about a step-by-step blueprint, even for new entrepreneurs, new entrepreneurs need to follow what I just went through, which is the STG PS exit model. And then they need to build their business on what are called the . And if you build a business on the six PS, you're going to have a sustainable scalable. And when you're ready, sellable business, you want me to go through those PS? Now, John, break it down, girl, all right, I'm going to break it down. Here we go. So, number one, the most, one of the most important pieces, people you don't build a business, you pill, you build people and people build a business.

1 (8m 13s):
So you have to have the right people in the right seat. And you have to ask the who question, who in your business opens up, who deals with customer service issues, who does with manufacturing, who deals with logistics, distribution, environmental issues, tax issues, accounting, who deals with human resources, the clues to the who John is. It should never be you. So you should always have somebody name next to that. Who, so you have a sustainable business that runs without you and have the right people in the right seat. Many business owners have people. They have good, talented people, but to have them in the wrong seat. And let me just illustrate this a little bit further. If you're a dental practice and you're the only dentist and I try to sell your dental practice, I take you out of business.

1 (8m 59s):
There is no business, same thing with a chiropractic office or a law firm, a medical practice. So you got to make sure you have the right people in the right seat and ask the who question and make sure your name is never next to the who. The second P is product. So ask yourself, is your industry on our way up or on the way out? Do you have an Amazon or do you have a blockbuster? And if you have a blockbuster, you need to pivot, you need to figure out what to do next. You need to ask yourself, transformational questions, get out of transactional and become transformational. Ask yourself what business am I in? What do I do really, really, really well. And what business should I be in?

1 (9m 41s):
And let me just illustrate this a little bit farther. Amazon, John, what business did it? Amazon start in books, books. So Amazon asks themselves, what business are we in? We're in a book business. Then ask themselves, what do we do really well? What did they do? Very well, John, they sold books. Yes, they sold books. But what did I do really? Really, really well. They did fulfillment. Really, really?

0 (10m 2s):
It was amazing.

1 (10m 5s):
Yup. And then they ask themselves, then what business should we be in? And they said, we should be in the fulfillment business, not just the book business. So those three questions, those three transformational questions is what turn Amazon into the multi-billion dollar conglomerate that it is today. So ask yourself those three questions. And sometimes you need an outsider's perspective to help you see what you do really, really well and what you should be doing different.

0 (10m 37s):
Yeah. Just to hold you on that point real quick, because that's so important. Fire nation. Like sometimes we're just so like in our own head, in our own business and you can't always see the forest from within the trees. That's why you need to be going outside and asking people that you know, that you like that you trust to say, Hey, what am I missing here? Or what do you see that I might not be seeing? So Michelle keep on rocking.

1 (10m 60s):
Sure. And then a third P is processes and processes are typically, never thought about until something tragic occurs in your business and asked the wrong time to be thinking about processes. You should design your processes from the beginning and design your processes with the customer experience in mind. John, have you ever watched a movie that founder? I love that movie based upon the McDonald's story, that McDonald brothers that started McDonald's right. They started McDonald's back in the forties, back in the forties, you had the drive up restaurants where they would come out on roller skates. The order was always cold. Food was always bad. It was always wrong. And it took forever. So McDonald's brothers said we're gonna develop a fast food restaurant.

1 (11m 42s):
Whoa. Our objective, our mission statement is to provide quality food that tastes great in two minutes or less. Well, how are we going to accomplish that? So they went up to a tennis court, took all their employees out there, drew out the processes and they stayed out there all day. Remapping it, remapping it, remapping it until finally they got the processes, right? Who's going to take the order. Who's going to toast to bums. Who's going to cook the PIR burger. Who's going to put the pickles on the barns and who's going to deliver it to the client in two minutes or less. So they designed the process is what the customer experience in mind to meet their mission statement, to meet their objective, that process right there, those processes, or why you can go to McDonald's in Hong Kong, Russia, America anywhere, and have the same experience.

1 (12m 31s):
Unfortunately, many businesses design a process without the customer experience. In mind, it doesn't create a wow experience. It creates quite the opposite. So you want to make sure you design it with the customer experience in mind that your processes are productive efficient, and that they're well-documented and you have policy and procedure manuals. You have SOP checklist because buyers won't buy a business unless you have that documentation. The fourth P let me know if you want him to stop me, John, but the fourth P is proprietary, but prietary is the most valuable. It is the highest value driver. There are six pillars to proprietary.

1 (13m 12s):
Number one is branding. The more well-branded you

2 (13m 16s):
Are, the more

1 (13m 18s):
Money you're going to get for the sell of your business. Who's the biggest brand in the world.

2 (13m 23s):
Amazon Apple with an a

1 (13m 27s):
Close apples were $389 billion. That's without inventory cashflows, furnitures fixtures, equipment, real estate, that's just the brand alone. So build your brand and then build your exit. Rich also trademark to very valuable. One of the mistakes that business owners make as they start a business and they get a trademark in their state, but they don't check to make sure that federal trademark is available and they don't go and get a federal trademark. So that could be in business five, six, seven years, and all of a sudden receive a cease and desist letter to stop using their company name because somebody else has that trademark and owners will spend thousands upon thousands of dollars, but end up losing and end up having to stop using a company name and have to build the brand all over again.

1 (14m 17s):
So go spend a 1500 to $2,000, get a federal trademark. The other thing that's way valuable is patents. We sold a company for $18 million. It had 18 patents, a million dollars a patent. So if you have something that's unique, get a patent contracts are extremely valuable. Manufacturer contracts, distribution, exclusive vendor agreements, client agreements are the most valuable of all, but here's the caveat. John gotta make sure you have that transferability language. The two sentences that say this contract is transferable to the new owner or to the new entity because 99% of all deals are asset sells.

1 (15m 0s):
Not stock sells.

0 (15m 2s):
Just stop you there, Michelle, because financially I hope he does see that last point that Michelle just made. I mean, it's literally worth its weight in gold because you miss those two sentences. You might be missing out on millions and millions in potentially more of dollars because you don't have that right language in, at the start at the beginning. And that's why if you want to exit rich, you're going to follow experts like Michelle here, who has been there, done that and fire nation. We're going to be hitting the rest of these peas and some other awesome things. When we get back from thanking our sponsors, imagine you can learn everything you need to know about creating, launching, and selling an online course in just two days. Great news. Our friends at Thinkific are inviting you to kick off 2021 at their free online event amplify where you can do just that this jam packed virtual summit will empower you to create launch and scale your first or next online course.

0 (15m 55s):
Over the two days you'll hear from me and the 20 plus other top course creation experts who have created transformational online courses that their students rave about. So if you're ready to create an online course to help you reach a wider audience, build revenue and make a bigger impact than amplify 2021 is a must attend event tune in from anywhere, even the comfort of your home for interviews and real tactical workshops spanning everything from course creation to business strategy and marketing and growth sign up for free today at thinkific.com/amplify that's T H I N K I F I c.com/amplify what's up fire nation.

0 (16m 35s):
I'm so fired up for the launch of my first traditionally published book, the common path to uncommon success right now you can pre-order your own copy and lock in some incredible bonuses that will be disappearing soon by visiting uncommon success book.com for all of 2020, I've worked tirelessly to create this life changing book. The common path to uncommon success has 17 crucial, yet simple steps that will guide you to your version of uncommon success. To sum it up. The common path to uncommon success is your roadmap to financial freedom in fulfillment. Also I've convinced 17 of the world's most successful entrepreneurs to contribute their genius to these 17 steps. We're talking about entrepreneurial all-stars like hel L rod Selena, Soo, John Morrow, Billy Jean, Leslie Samuel, Sean Stevenson, Jeff Walker, Amy Porterfield, Russell Brunson, Stu McLaren PatFlynn Ramit Sethi and many more fire nation.

0 (17m 24s):
The time to take control of your future is now visit uncommon success book.com and pre-order your copy today pre-orders will help so much in making this book launch a success. So if I've added value to your life in any way over the years, it would mean the world. If you pre-ordered this book today and locked in your amazing bonuses, uncommon success book.com. So Michelle we're back and you were talking about having patents and doing all these different, great things with contracts and the transferability. Keep on rolling. Sure.

1 (17m 57s):
So make sure, make sure the contracts are transferable. And then the other, a couple of other pillars in proprietary is databases. So databases are typically undervalued because most M and a advisors don't know how to value a database. If your database can be re-targeted and repurposed, it's worth a tremendous amount of money to the right type of buyer who wants to buy these synergies. I'll give you an example. Facebook pay $19 billion for WhatsApp and WhatsApp was hemorrhaging money, but Facebook bought WhatsApp because they had a billion users. So if you have a lots of users and it can be repurposed and re-targeted, we can get you a lot of money for that, for that one particular proprietary asset.

1 (18m 39s):
And then also you got to think of business real estate. I call this business real estate. This is not commercial property. This is intellectual real estate. So let's say that you have a skincare company and you have Glenn back or are Oprah Winfrey or somebody endorsing your product. They can only endorse one scare product, one skincare product at a time. This is huge real estate. This is very tough to get. Let's say that you make pillowcases and sheets and bathrobes and, and all these products. And you're number one on Wayfair. That's huge. Let's say that you have a certain product and you're on Oprah's favorite things.

1 (19m 21s):
Or let's say that you have a certain vacuum cleaner that you have all these patents and you've cornered the market on Amazon. This is what we call business real estate. The strategic buyers will pay top dollar for okay, very valuable. Their fifth P is patrons. So you have to ask yourself, do you have customer concentration or customer diversification? And one of the reasons that businesses are going out of business, 70% remember are going out of business is because business owners stopped asking their clients, what do you need? What do you want? How can I make it easier for you to do business with us?

1 (20m 0s):
Amazon is winning because they make it so easy to do business with them. You can order practically anything you want and have it delivered in two days. So that's what business owners have to stop. Start doing, asking our clients, what do you need? What do you want? How can I make it easier for you to do business with us and make sure you have customer diversification. If you have customer concentration, if you follow the 80 20 rule where 80% of your business revenues come from 20% of your clients and you lose a couple of clients, you could be out of business. Also, if you've been in business 20, 30, 40 years, your clients could be aging out. So you have to make sure that you're always on top of that. And yet you're replacing clients and have client diversification.

1 (20m 41s):
And then the last piece, one of the most important piece, John is profits. We're all in business to make a profit. However, profits is never. The problem profits are never. The problem. Lack of profits are never the problem. It's always the symptom of not operating on one or the other PS. If you don't have the right people in place, you're going to lose money. If you're in a dying industry, if you don't have the right product, you're going to lose money. If your processes are not efficient, productive, designed with the customer experience in mind, you'll lose market share. If you haven't protected your IP, you're gonna spend thousands upon thousands of dollars and practically be out of business.

1 (21m 22s):
If you don't have customer diversification, then you could lose market share and lose profits. So profits is never, the problem is always a symptom. Those are the six PS. Wow,

0 (21m 34s):
No, there was a lot, but Hey, that's why exit rich allows you to go back and go through step by step by step. And this was very thorough. Michelle. I really want to focus right now on a bidding war because I know that, Hey, when we have a lot of demands and there's not much supply, then the price goes up and this could be the case of one supply your business. And a lot of demand, the potential buyers. It can create a bidding war. So talk to us about that benefit.

1 (22m 1s):
Absolutely. So w you know, one of the benefits, I mean, we have over 28,000 buyers in our database, probably the largest buyer database in the industry, and we have the five different types of buyers. It's imperative to know what buyers are looking for, what synergies are willing to outbid everybody else on. And then when we work with our clients, with our business owners to know what synergies I have. So some of the synergies I mentioned was patents, contracts, databases, prime, real estate. Like somebody owns that number one spot on Wayfair or somebody is in Oprah's favorite things. So we know like, I'll give you an example. We, we sold the business, it was a manufacturing business or manufacturing, and it was a price for it in a $9.8 million range, $2 million range.

1 (22m 47s):
And right under 10 million, we have 550 buyers for that one business. We ha we narrowed it down to 12. We had 12 LOI and one buyer was a strategic. This buyer had some more pot, has similar products and services and wanted to make sure he outbid everyone else because he was mine. One thing he was buying the contract. So this company had a contract with BP, that customer concentration, 60% of the revenue was tied up in the BP contract, but he didn't care because they had been getting into, they've been trying to get an, a BP for years and years and years with their products and services and never could get into tour.

1 (23m 27s):
So they knew if they bought this business, it was synergistic to the current company and they could finally get their products and services in front of BP. So they paid $15 million for 70% of the business for a business that was appraised for nine, four, 9.8 million. So that's 5% higher than the price value

0 (23m 48s):
Fire nation. This is just one example of the power of bidding Wars. Like you don't know what other people's aspirations or goals or, you know, what they're hoping to get out of a deal might be. That's why, when you're covering all the bases at the beginning, you just might be surprised what is actually appealing. What is really appealing. Like I love when Michelle was talking about how WhatsApp was hemorrhaging. I mean, that word is strong hemorrhaging cash. And guess what? Facebook didn't care. They wanted the users, the billion plus users. And I can tell you, like, I use WhatsApp literally every single day. And when I log in, what do I see? The little effort Facebook. And it makes me think of Facebook now. And it was like, Oh, and it makes me maybe want to buy Facebook stock too, because now I'm using multiple of their services, Instagram, WhatsApp, Facebook.

0 (24m 31s):
I mean, it's like one of these things where it makes companies stronger. So a lot of interesting stuff, and Michelle, I want to end on a high note here, your book, exit rich, it's available. Talk to us about why fire nation needs to pick up this book and where you want them to do so. Absolutely.

1 (24m 51s):
Thank you, John. So far, our nation, you know, this last 20 minutes is like drunk Palm drinking through a fire hose. Right? So, so have you really interested in what I have to say? Go to exit rich book.com, exit rich book.com. I just want to add a couple of things. Number one, exit Rich's Inc. Original. It's endorsed by Steve Forbes foreword by Kevin Harrington, who was the original shark on shark tank. Last we got Brian Tracy, Tom Hopkins, Les Brown. We got some great entrepreneurs backing us up. Sharon Lechter is my coauthor who wrote rich dad, poor dad, Robert Kiyosaki. And she's written several books and under Polian Hill foundation.

1 (25m 31s):
So she's a CPA and a financial literacy expert. Plus the advisor to several different presidents. And her husband is an intellectual property attorney. So when you read exit rich, not only are you getting my 20 years plus experience selling over a thousand businesses, you're getting a CPA, a financial literacy expert, and an IP attorney all combined in one. So you can go to exit rich book.com, where you can get the book now for $24 and 79 cents, which includes shipping and you were to receive the digital download immediately. Plus the book will be shipped to your doorstep when it comes out and you will get a lifetime book membership and to exit rich book membership club, where you will receive video training of me doing transformational questions, doing deep dives and these different strategies and techniques that we've been talking about.

1 (26m 20s):
Plus, most importantly, you'll receive all the digital downloads you need. So if you've never seen an employee handbook or an organizational chart or a sample purchase agreement on a sample Levin tent or sample due diligence checklist, or closing documents, every documentation that you need to build a sustainable scalable sellable business is in there for your review. Plus there's more, you'll receive 30 days of me in club CEO's, which is a club I founded with like-minded entrepreneurs where we'll do Q and A's masterminds hot seats to help ask those burning questions, those transformational questions to help you not only survive but thrive, and when you're ready, exit rich

0 (27m 5s):
Anish. And you're the average of the five people you spend the most time with. And you've been hanging out with MST and J L D today. So keep up that heat and make sure you take that strong call to action. Visit exit rich book.com, check out the book, pick it up, get all the awesome bonuses and Michelle mentions. If you want to exit rich and fire nation, I know that many of you listening want to do just that. So, Michelle, thank you so much for sharing your truth, your knowledge, your value with fire nation today, for that we salute you and we'll catch you on the flip side. Thank you, John. It was a pleasure. Hey, fire nation today's value bomb content was brought to you by Michelle ans fire nation.

0 (27m 49s):
I've created a treasure trove of free courses for you and teach you how to podcast run a mastermind, create funnels that actually convert come up with your big idea and so much more. All you need to do is visit EOFire.com/resources, EOFire.com/resources to start learning today. I'll catch you there, or I'll catch you on the flip side, ready to launch and sell your online course. Then you need to tune in for amplified 2021 with Thinkific. This free jam packed event produced by our friends at Thinkific. We'll bring together 20 plus international course creation experts to share their behind the scenes tips and strategies to get you on the fast track to launching a course that will sell, visit thinkific.com/amplify to RSVP today.

0 (28m 39s):
That's T H I N K I F I C.com/amplify fire nation. Are you looking for a step-by-step roadmap to financial freedom and fulfillment? Will I have some great news for you? My first traditionally published book, the common path to uncommon success is available for pre-order now visit uncommon success book.com to pre-order today and lock in the incredible bonuses that are going away soon. Uncommonsuccessbook.com.