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.
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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!
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**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
[01:36] – Grab a copy of Dan’s book, Before the Exit: Thought Experiments for Entrepreneurs, and a lot more over at TropicalMBA.com/BookResources!
[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.
[03:44] – Tune in to Episode 175 of Entrepreneurs On Fire to hear Dan’s first interview on EOFire!
[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!
[06:53] – JLD talks about an upcoming guest, Rand Fishkin, and his book, Lost and Founder
- 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
[53:57] – Learn more about Dan and Ian’s Business Exit through his book, Before the Exit, available at TropicalMBA.com/BookResources
[54:40] – Tune in to hear Dan’s final takeaway!
1) The Common Path to Uncommon Success: JLD’s 1st traditionally published book! Over 3000 interviews with the world’s most successful Entrepreneurs compiled into a 17-step roadmap to financial freedom and fulfillment!
2) Free Podcast Course: Learn from JLD how to create and launch your podcast!
3) Podcasters’ Paradise: The #1 podcasting community in the world!