Back in 2015 Dan Andrews and his partner, Ian Schoen, sold their product business. They had been building this business over the course of 7 years, employed 15 people, and had grown it to a multi 7-figure per year business. Today, Dan is here to talk about what mistakes could have been avoided during their exit and also to teach us how to plan a powerful exit strategy.
Your Big Idea: Successful Entrepreneurs have One Big Idea. Follow JLD’s FREE training & you’ll discover Your Big Idea in less than an hour!
Grab a copy of Dan’s book, Before the Exit: Thought Experiments for Entrepreneurs, and a lot more over at TropicalMBA.com/BookResources
Entrepreneurs On Fire Episode 175 – Dan’s first EOFire episode
Rand Fishkin, and his book, Lost and Founder – Upcoming guest + a book JLD mentioned
Rich Dad Poor Dad – Book Dan mentioned that defines Financial Freedom
The Mastery Journal – Master productivity, discipline, and focus in 100 days!
3 Value Bombs
1) If you’re thinking of selling your business, think twice and take a period off to assess how you really feel about it.
2) Your business doesn’t have to stay the same as it is now — recapture the entrepreneurial spirit by implementing changes.
3) Stop using boredom to mask your incompetence. There’s nothing boring in taking your business to the next level!
Right Networks: Helps entrepreneurs securely transition applications like QuickBooks Desktop or Microsoft Office to the cloud. To learn more give Right Networks a call at 888-469-5905. And for a special 10% discount mention “Entrepreneurs On Fire” before May 1, 2018!
LegalZoom: With LegalZoom’s Business Legal Plan you’ll get legal advice for your business from vetted independent attorneys and tax professionals who are available in every state. Check out LegalZoom’s Business Legal Plan today at LegalZoom.com and get special savings when you enter EOF at checkout! LegalZoom: where life meets legal.
**Click the time stamp to jump directly to that point in the episode.
[00:05] – This week’s audio masterclass is all about Planning a Powerful Exit Strategy!
[00:58] – The 5 Thought Experiments you’ll learn about today from Dan:
- #1 The Lifestyle Ladder
- #2 The Mock Tax Rebate, featuring the Mediocre CEO Test
- #3 The Hidden Upsides
- #4 The Cash Conundrum
- #5 The Dirty Secret
[01:57] – Dan talks about moving to Barcelona, Spain and taking up cycling. He also talks about why he believes endurance sports are for entrepreneurs.
[04:36] – Why planning your exit is important: Dan explains why you, Fire Nation, NEED to learn this!
- Fact: 50% of small business entrepreneurs who exit are dissatisfied and miserable about it
- Dan and his partner Ian felt this way after selling their business, and after talking to other entrepreneurs, Dan found out they weren’t the only ones with regret…
- START with the EXIT in mind — Dan talks about the reality!
- The Perception vs The Reality
[08:47] – The 1st Thought Experiment: The Lifestyle Ladder
- What is your number? The FREEDOM LINE. Dan talks about his own levels on the ladder:
- Being in debt
- Being broke
- Having basic savings
- Having a financial platform
- “The effective cash in your lifestyle is nonlinear”
- The QUESTION you’ve got to ask yourself — Don’t miss this, Fire Nation!
- Start writing your own lifestyle ladder!
- Dan and JLD share their own Freedom Numbers
- “Your business platform provides you with a lot of opportunities and optionality”
- Think about your future, Fire Nation!
[17:18] – The 2nd Thought Experiment: The Mock Tax Rebate, featuring the Mediocre CEO Test
- The issue when you have a business that’s consistent — you start worrying!
- When you sell your business, you WILL have a global financial crisis
- The Mediocre CEO Test — Dan talks about what this is and why you should care!
- If you want to walk away for a lifetime, just try it out for a month. Don’t instantaneously jump into selling your business; just try to get out of it for a period of time and see how you feel about it
- Think about where you could have taken your business during the 2 years you prepared for the exit
[24:48] – The 3rd Thought Experiment: The Hidden Upsides
- Just because you’re business has been consistently boring doesn’t mean it has to remain that way
- Why entrepreneurs tend to undervalue the platforms they’ve built
- JLD talks about retooling EOFire and the changes he’s doing to bring the podcast a new vibe after asking the same 4 questions for almost 2,000 episodes
- Recapture the entrepreneurial spirit!
[34:03] – The 4th Thought Experiment: The Cash Conundrum
- Dan reveals the truth: not ALL business models are created equally
- Cash Flows VS Cash Piles. Tune in to find out what the difference is!
- Dan mentions Rich Dad Poor Dad and the definition of Financial Freedom
- If you want to cash pile, set an intention for it
- The difference between the investment skill set and the entrepreneurial skill set
- Dan drops the truth re: the “opposite strategy”
[40:30] – The 5th Thought Experiment: The Dirty Secret
- Dan talks about using boredom as a way to mask incompetence & The Peter Principle
- Remember: “What got you here, won’t get you there”
- The TRUTH: There’s NOTHING BORING in taking a business to the NEXT LEVEL
- How masterminds can be a problem — hear this out!
- Another dirty secret: The chances of building another successful business
- A question to ask yourself: Do you have the desire and energy to build another business?
[49:53] – The Business Brokers
- Note: Your business broker is NOT on your side
- Value Bomb Drop: Brokers are not incentivized to maximize deal price
- Exiting and selling a business are two different things. Selling is about getting the right price for your business, while exiting is about a career change for the entrepreneur
[54:40] – Tune in to hear Dan’s final takeaway!
1) Free Podcast Course: Learn from JLD how to create and launch your podcast!
2) Your Big Idea: Follow JLD’s FREE training & you’ll discover Your Big Idea in less than an hour!
3) Funnel On Fire: Learn how to create a funnel that converts!