Hi, I’m Dave Lavinsky, and below you will discover the 3 most dangerous trends facing entrepreneurs and business owners today.
Unfortunately, I’m talking about trends that can literally wipe out your business, ruin your life, and make you wish you had never become an entrepreneur in the first place.
But, importantly, I’m also going to hand you the one secret tactic that the world’s richest entrepreneurs use to achieve extraordinary success. And I’ll also give you the 5 keys to successfully executing on this tactic.
The first key trend you need to know about is that the number of new business starts is skyrocketing. According to the Kauffman Index of Entrepreneurial Activity, entrepreneurial activity in the United States is at its highest point in 15 years.
The Kauffman Foundation reports that 565,000 new businesses are created each month in the United States (that’s 6.8 million new businesses each year).
The second trend I want you to know about is that foreign competition is increasing dramatically. According to “The Future of Business” by Lawrence J. Gitman and Carl McDaniel, over the past 2 decades, world trade has climbed from $200 billion/year to more than $11 trillion/year (that’s an increase of 55 times!)
And while foreign competition here in the U.S. used to be relatively rare, it now occurs in almost every industry…
So what is the result of these first two trends?
And why should you care? Because this massive competition is causing the vast majority of new and existing businesses to fail.
Consider these miserable statistics:
And even when their businesses stay afloat, entrepreneurs are suffering big time.
Consider these facts taken from numerous research studies and published in Scott Shane’s book “The Illusions of Entrepreneurship.”
The typical entrepreneur:
Yes, this is terrible. And it gets worse…
Even when entrepreneurs grow revenues to $1 million, $5 million, and $10 million or more, most entrepreneurs still don’t realize their personal and financial dreams…
Why? Because they are working too many hours, incurring too much stress, not spending enough time with loved ones, and not doing most of the fun things they dreamt about when they decided to become an entrepreneur in the first place.
And here’s the kicker, even those entrepreneurs who grow revenues to $1 million, $5 million, and $10 million, they still don’t have enough money to do and buy the things they want. That’s because depending upon where you live, your marginal tax rate can be as high as 50%!
So even when you have a great year, you have to give half your profits to Uncle Sam!
So, I have an important question for you: is the American Dream a sham?
The dream that America is the land of opportunity….that you can start a successful business and live the life of your dreams?
The good news is that the answer is NO.
The American Dream is alive and well.
Here’s how I know…according to Smart Money magazine, there are over 930,000 pentamillionaires in the United States.
Now a pentamillionaire is someone who has $5 million or more in wealth. In my opinion, this is the amount of money you need today to live the dream life. To have an amazing house, go on dream vacations, and do all the things you’ve ever dreamed of doing.
And here’s the key…
According to Harrison Group Research, 80% of these pentamillionaires are entrepreneurs who sold their businesses.
There are two core reasons for this.
The first is that there is a massive tax advantage when you sell your business. Depending on how you sell your business, the capital gains tax rate can be as low as 5% versus up to a 50% marginal income tax rate that I mentioned before (so when you run your business you’re paying up to 10 times more tax).
The second reason you become wealthy by selling your business is that strategic buyers will typically place a significant premium on your value.
You might recall the definition of “synergy,” which is when the sum of the whole is greater than the sum of the parts.
Many times the value of your company plus the acquiring company is many times greater than the value of either company alone. Because of this, acquiring companies might buy your company for a whole lot more than you think it’s worth.
So, let me recap where we’ve been.
But, there’s one more dangerous trend that’s still in our way. And that is that selling your business has gotten tougher.
As you probably know, the tightening credit markets have made less money available for most companies to do acquisitions.
And more businesses started (remember, 6.8 million new businesses are started each year), means more businesses for sale, which means a lot more competition to sell your business.
The result of this has been pretty nasty for entrepreneurs wanting to sell their businesses.
According to “Buying a Business,” in 1978, the average time to it took to sell a business was just 57 days. By 2001, the average time jumped to 225 days. By 2006, it was 237 days.
And today, according to BusinessesForSale.com, the average time it takes to sell a business is over 270 days.
And according to Inc. Magazine, only 17% of businesses who try to be sold ever actually get sold. That's an 83% failure rate!
And, unfortunately these number are only going to get worse…because the baby boomer generation is approaching retirement age.
According to GW Equity and the University of Dallas Graduate School of Management, more than 75% of business owners currently generating between $1 million and $150 million in annual sales anticipates selling within a few years.
When asked why they expected to sell, 57% said it was because of their age. They want to retire.
Fortunately there is a solution. And companies are selling for millions of dollars EVERY SINGLE DAY…
The solution is that you must build a company a certain way, and with the goal of selling it clearly in mind!
Even if you have no plans to sell your company now, or even in a couple of years, you MUST start the planning and structuring process now!
And, importantly, if you wait until you want or need to sell, it’s often too late, and/or you’ll get only a fraction of your desired selling price.
Now, I’ve put together a great program called “Million Dollar ExitsTM” that shows you exactly how to do this. And later on this page, I’ll tell you how to get it.
But for now, I’m going to give you the 5 keys to building and selling a company for millions of dollars.
Here’s what I mean by this: someone who wants to buy your business will want to be sure the business can run without you. So you need to set up your business so it does that.
You need to figure out things that you’re currently doing that someone else can do. And you need to establish systems so the business can grow without you.
And the good news is that once you “put yourself out of business,” your quality of life goes WAY up…you’re doing the fun, exciting growth work, and not the day-to-day grind.
Let me give you an example of one of my clients who did just this.
His name is Marcus Katz. Marcus founded Educational Loan Administration Group. He completely systematized the business and then focused his time on marketing.
The result…he grew the business dramatically and sold it to American Express for a huge sum.
Better yet, after selling to American Express, he started 2 more student loan businesses, completely systematized them so they ran without his day-to-day involvement, and he sold those too!
The key here is that when you only have a few large customers, your business is at risk. Because if one or more of these customers leave you, your business could fail.
That’s why you always need to be diversifying your customer base. You should be thinking about new customer segments to target. And, you should realize that the more customers you have, the more customers the company who acquires you could sell to.
Let me give you an example of one of my clients who did just this.
You’ve probably heard of them. The company is Fathead. Fathead built a highly diversified client based of tens of thousands of consumers.
But it didn’t stop there. In addition to consumers, Fathead started serving corporate clients and photographer clients.
The result…Fathead was acquired in a BIG acquisition
I’ve identified 21 key value drivers of a business, which are the things in your business that can drive your acquisition price higher and higher.
In my “Million Dollar ExitsTM” program, I go through all 21 in detail, but here I have time to go through three of them with you.
The first key value driver is customers. The more customers you have and the more valuable your customers are, the more acquirers will pay to buy your company.
The second key value driver is Intellectual Property. According to ThinkFire, an intellectual property firm, the average patent was acquired for $383,000 over last few years. So, the more intellectual property you have, such as patents, trademarks, copyrights, and trade secrets, the more your company is worth to acquirers.
The third key value driver is your team or employees. The company that acquires you generally also acquires your team. So, the more talented your team is, the higher the price the acquirer will pay for you. It’s obviously important to keep this in mind as you hire and train your employees.
Let me give you an example of one of my clients who did a great job in identifying and building his value drivers. His name is Ari Sandel. Ari started a small medical devices company called Devon Industries. He developed 22 patents and a highly skilled team. As a result Johnson & Johnson purchased his company for tens of millions of dollars.
And like Marcus Katz did, Ari Sandel then started another company similar to his first. This time, it was called Sandel Medical. He once again received numerous patents and built a highly skilled team. And then he successfully sold that company to another publicly traded company for millions of dollars.
Continuity or “membership” programs are programs in which you sell a customer once, and they pay you over and over again, such as every month or every year. Like a gym membership where you have to pay a monthly fee.
Having a continuity program greatly increases your value to acquirers since it removes the risk of your sales plummeting after the acquisition.
So, in building your business, always think about how to get customers to pay you over and over again, because this will dramatically increase the value of your business to acquirers.
Let me give you an example of one of my clients who did just this. His name is Craig Rowe, and he is the president of WhyPark.
WhyPark monetizes “parked” sites (“parked” sites are sites in which someone owns the domain, but they haven’t yet built the site).
WhyPark was making money by offering “one and done” services like writing articles for and getting links to people’s websites. But he achieved real success when he started offering continuity programs. He started offering $10/month and $25/month services including RSS feed integration, social networking applications and statistics.
And once he built up the number of members paying WhyPark every month, the company’s revenues and value skyrocketed, and an acquirer came in and paid him a ton of money to buy it.
The fifth and final key to successfully building a sellable company is to “skillfully execute the transaction.”
You see, you can DOUBLE the amount for which you sell your business by having the right 1) presentation, 2) professional sales process, and 3) negotiating and closing skills.
With regards to presentation, the way you position your company and support your valuation in it has a huge effect on how much an acquirer will pay for you.
Likewise, with a professional sales process, you will get more potential buyers who will start a bidding war that results in the highest possible price to buy your business.
And finally, by having the right negotiating and closing skills, you will get the acquisition deal done with the best possible deal terms.
Let me give you an example of one of my clients who did just this. His name is Walter Alessandrini of Ometric.
Ometric provides innovative solutions for industrial processes. Growthink advised Ometric over 18 months, and ensured that he had the right presentation, professional sales process and negotiating strategy. As a result, we helped him sell Ometric for more than 14 times his revenues, which is an enormous multiple.
So, now that you know the five keys to successfully building a sellable company, let me tell you about my Million Dollar ExitsTM Program which guides you to achieving this critical result.
The four benefits of the Million Dollar ExitsTM Program are as follows:
These six comprehensive video training sessions are the cornerstone to the Million Dollar ExitsTM Program.
Each training sessions is accompanied by handouts so you never get lost. Importantly, the video training sessions teach you everything you need to know and do to build and sell your company for millions of dollars
Here’s an overview of each of the six sessions:
In this session, you’ll learn:
In this session, you’ll learn:
Importantly, virtually all of these strategies will also boost your immediate revenues and profits, and afford you more time off and less stress from operating your business
In this session, you’ll learn:
In this session, you’ll learn:
In this session, you’ll learn:
In this session, I show you how to expertly complete your Million Dollar ExitsTM Roadmap.
The Million Dollar Exits RoadmapTM, which you also get when you sign up for the Million Dollar ExitsTM program is a Microsoft Word template that guides you through taking everything you have learned, and putting it together into an action plan that you can follow to build and sell a multi-million dollar company.
But that’s not all. In addition to my comprehensive video training program, handouts and Million Dollar Exits RoadmapTM, when you sign-up today, I will give you immediate access to EIGHT Expert Interviews I conducted.
These interviews will give you even more tips, insights and tactics to maximize your business’ growth, profits and selling price!
Here’s a summary of these interviews:
So, to recap, when you sign up for Million Dollar ExitsTM today, you get:
Now, I want to be very clear that this is a $5,000 program. What I mean by this is that I have purchased training programs for other disciplines that were less comprehensive than Million Dollar ExitsTM and which cost $5,000 or more.
And $5,000 is well below the price that the entrepreneurs and companies you’ve just heard about have paid me and my company to give them only part of the information covered in Million Dollar ExitsTM.
But I will not charge you $5,000 for the program. And I won’t even charge you $1,000, which is the price that hundreds of entrepreneurs happily paid when I first launched my Million Dollar ExitsTM program in 2011.
And they were thrilled to pay that amount. Because they all loved the program and have gone on to build and sell tremendously successful ventures.
And here’s what one of them said:
“I was totally blown away by how much of his ‘secret sauce’ Dave gave away in ‘Million Dollar Exits.’ The level of detail and specific instructions on what to do that Dave shares in this program - along with the highly detailed slides and worksheets - make this a no-brainer in my book.
I would highly recommend Million Dollar ExitsTM to any business owner who wants to get a good grasp on what to do NOW to build a business that they can sell for millions in the future.”
Bruce Johnson, President
Accelerated Growth Consulting
So, what is the cost to you? Well, I think this information is so absolutely critical to your success, that I priced it at a level that every entrepreneur can afford.
That’s why the price to you for Million Dollar ExitsTM is only 3 payments of $97 each.
Yes, you get the six comprehensive video training sessions, the detailed training session handouts, the Million Dollar Exits RoadmapTM and the eight expert interviews, all for just 3 payments of $97 each.
If you're not 100% thrilled with either the quality of the Million Dollar ExitsTM program OR the quality of your results ... then at any time within the next year - 365 days - just let me know and I'll refund 100% of your money.
You only pay for it if you love it and it works!
Right now, I'm offering you my proven Million Dollar ExitsTM program...so you can build a business you can sell for millions of dollars.
Think about it...
You get it for just three payments of $97...
If you don't like it, you get your money back...
If you're ready to take your business to the next level...click the "Add to Cart" button below, order through my secure online shopping cart, and start building your sellable business today.
Since I’ve sold Million Dollar ExitsTM before (at over triple today’s price), I know some of you have questions as to whether the program is right for you.
Answers to the four most common questions are below. If you have any additional questions, please email us at [email protected] and ask them.
Q. Is Million Dollar ExitsTM for Startups or Existing businesses?
A. The program is for both startups and existing businesses. The sooner you start building your business to eventually be sold for millions of dollars, the better. So it’s never too early.
Q. Will Million Dollar ExitsTM work for MY business?
A. Yes, Million Dollar ExitsTM can help any business grow in the RIGHT WAY so it can ultimately be sold for millions of dollars.
In fact, here is just a small sample of my clients who have achieved just that:
Q. Is Million Dollar ExitsTM for companies who are ready to sell now?
A. If you’re ready to sell your business now, Million Dollar ExitsTM will teach you a ton. You’ll learn how to find buyers, how to negotiate the highest price, and so on.
But to get the full value of the program, you want to get it well before you want to sell. That way, you can follow the Million Dollar Exits RoadmapTM and build the perfect company that’s worth many times more than it would have been had you not gone through the program.
Q. Will I receive any Million Dollar ExitsTM materials in the mail?
A. To keep the price of Million Dollar ExitsTM low enough so every entrepreneur and business owner could afford it, I am not printing or shipping any DVDs or other materials. Rather, once you sign up below, you will receive an email with your special link to your online member’s area. In the member’s area, you can watch the video training sessions, and download the training notes, Million Dollar Exits RoadmapTM and each of the eight expert interviews.
So, don’t wait any longer. Sign up for Million Dollar ExitsTM now and start building your sellable business today!