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Congratulations on the release, Michelle! Big thanks for letting me be a part of amplifying this book which I LOVE LOVE LOVE and highly recommend you get. Drop me a comment with to let me know you picked it up. ONLY 2.99$ for the entire month of MAY so don’t miss out! Seriously, just get the book. It’s fantastic.
Heck, drop a reply and if you’re in the US or Canada I’ll help a bunch of folks to pick up a copy before the price goes up.
Welcome everybody to the show. My name is Eric Wright. This is the DiscoPosse Podcast where we are bringing on a return guest, somebody who I really enjoyed having a conversation with the first time, which is why I was honored to be able to help Michelle Seiler-Tucker. We talked about her book “Exit Rich” that she co authored. It’s an amazing book. I’ve read it. We talk about the 6P framework in her original episodes. Go on, make sure you check out her original show. But to top this off, we’re talking today about lessons learned since the release of the book and an amazing announcement that the audiobook is now available.
So you can follow the links below. Get the audiobook because right now it’s on sale for $299. This is a really really amazing deal. Literally like less than a cup of coffee. Why in goodness name would you not get this book? It’s well read. I love the folks that they had, actually did the reading and just the content of the book is fantastic. So Michelle Seiler-Tucker, thank you very much for letting me be a part of helping with the amplification for the launch. And this is why great people support great things and I love supporting Michelle and all the work that she’s done. Speaking of support, of course, I want to give a shout-out to the folks that support this podcast that make it happen. If you have data anywhere in your world, which you do, I know you do, especially any of the systems you’ve got in your organization, you need to make sure that you protect your data, protect your business, protect yourself, protect everything. So everything you need for your data protection needs can be shopped out by the fine folks over at Veeam Software.
It’s also Veeam-On coming up next week. If you’re listening live and this is a really great time, everybody’s going back in person. So go head on over to vee.am/discoposse. You can see all that they’ve got to offer. I recommend it. I’m a user of the platform myself. Very cool. And also, we are super proud to continue to grow our partnership with the friends over at the Shift Group. So, JR at the Shift Group, if you caught his episode which you absolutely should, this week’s episode is brought to you by the team at Shift Group. They are turning athletes into sales professionals. So if your company is looking to hire driven and competitive former athletes, or considering how do you architect to go to market that can scale efficiently and effectively? Shift Groups not only offering a huge pool of really cool, diverse sales candidates from entry-level leadership, but they’re helping early stage startups to develop a hiring strategy, the whole interview process, and really building sales culture that’s going to scale with you and build high talent, early-stage companies. So head on over to shiftgroup.io and you can check it out. All right. With that, this is Michelle Seiler-Tucker. Get yourself the book. Click the link. Seriously, leave right now. Pause. Go over and download the book, it’s fantastic. Thank you very much.
All right, Michelle Seiler-Tucker, thank you very much. This is a rare treat to have somebody come back. I don’t often get the chance to spend more time, especially with somebody as amazing as you, because I know you are busy in day to day. Plus, we’re here for a special occasion right now. We talked in the past about “Exit Rich”. We talked in the past about your entire story, your business, your own way of helping people to get to success, both personal and professional. But we’re here today because we’ve got something new in the Exit Rich world. So Michelle, if you want to re-introduce yourself to folks that are brand new to you, and we’re going to talk about the new launch of the audiobook and everything wrapped around it.
Absolutely. Well, first of all, Eric, thank you for having me back on. I appreciate it. I am Michelle Seiler-Tucker. I was on your show, I think it was six months ago. I’m Michelle Seiler-Tucker, mergers and acquisitions master, intermediary senior business analyst, certified mergers and acquisitions professional, and a bunch of other acronyms behind my name. I’ve been in this industry a little over 20 years. I think what really makes me neat in M&A is I own other companies. So I’ve always been an entrepreneur. I’ve always sat on the other side of the desk. I’ve always had to be the one to make sure I meet payroll, pay the bills, et cetera. So a lot of my advisers, brokers, have not necessarily owned businesses before. And I think that helps me to be able to relate with my clients and really be empathetic and understand what they’re going through. So at any given time, I own several different companies. I’m also building to sell. Like I said, I’ve been in this industry for a little over 20 years. I personally have sold over 500 companies. My firms has sold probably even more than that.
And we really specialize in not just selling companies, Eric, but we specialize in buying companies, selling businesses, helping buyers buy the business of their dreams. We specialize in fixing and growing a business because Steve Forbes, who endorse “Exit Rich” says 80% of businesses on the market will never sell. 80% – I mean, that should be a big wake up call for business owners because that means you have less than a 20% chance of success when you go to sell your company. And so what I learned a long time ago is if I don’t get in and roll up my sleeves and help fix these companies, help position them and help them build the infrastructure on what we talked about last time, which are the 6P’s, then their business is not going to sell. So like I said, we don’t just specialize in selling. We specialize in fixing these businesses, growing these businesses. So the owner really has a sustainable business that’s scalable. And when they’re ready, sellable.
When this is very important too, Michelle. We often forget about the numbers. And in fact, you are one of my most quotable episodes because in the industry, we’re constantly thrust with this number where people say like 99% of startups fail. And I continue to go back to remind them, watch the episode with Michelle Seiler-Tucker where she talks about how that’s actually inverted. Right. The upside-down numbers that we get from the SBA. And now that 80% that you and Steve talked about there of businesses that are sitting unsold. That is an interesting stat. But if you don’t mind, let’s recap on sort of the failure in this metric that we talk about that small businesses are failing.
Yeah. So small businesses are failing. And to go back over those matrix, I was actually quite shocked myself because when I wrote my very first book, “Sell Your Business For More Than It’s Worth” in 2013, I did the research back then and learned that 90-95% of businesses were going out of businesses were startups. So that is true. However, what’s changed so dramatically is when I did the research for “Exit Rich” in 2019 and 2020, I learned that the business landscape has really flip-flopped. So now it’s not startups a great risk anymore. Startups only have less than a 30% chance of going out of business. A 30%. So they have a 70% success rate. But, what’s so mind-boggling is when you look at America and you look at what the economy is really built-on, there’s 3.2 million businesses in the United States employed over half the US workforce. Over half the US workforce. Think about that.
So small business is really supporting the economy, the American economy. If we lose small business, we lose jobs. What happens when you lose jobs? We lose spending power. And then what happens? It’s a trickle down effect. We stopped going to restaurants. We stopped buying ice cream. We stopped doing a spinning discretionary money because we don’t have it anymore. So now you have a triple down effect where more businesses will close. So 30.2 million businesses now, out of 27.6 million companies in the United States, those businesses have been in business for ten years or longer. 70% of those companies are going out of business. 70%. See how it flip-flops. So now startups have a 70% success rate, whereas startups, existing businesses have a 70% failure rate. Pretty scary. And you hear about the big companies all the time in the media like, the media will talk about public companies, Toys R Us – in business 75 years ago, goes out of business. Montgomery Ward, Sears, J.C. Penney’s, Pier1 – I love Pier1!
Right. Crate and Barrel, a recent one as well. Lord &Taylor, lots of the big retail players.
Yeah, but the media doesn’t talk about the private companies. They only talk about the public businesses. On the private side, we got businesses on every street corner and every city and every straight across our great nation. These businesses are dropping like flies. They’re selling from – they’re actually poor, not rich. They’re selling for pennies on the dollar, closing the companies or even worse, filing bankruptcy. And so it’s really scary. And by the way, Eric, that was before the pandemic. I hate to see my numbers now, but that was before the pandemic. And I always say the number one reason for that, why it’s kind of flipflop is because startups are really a different breed now. It used to be the dreamer mentality. People would leave their corporate jobs and say, oh, I always wanted to own a coffee shop. I always wanted to own a restaurant or a clothing store. But they don’t have the business experience. They’re probably not really an entrepreneur, you know, they’re really probably not an entrepreneur. And they have that build-it-and-they-will-come mentality like “Field of Dreams”. Remember the movie “Field of Dreams”, build it and they will come? Now, a lot of those startups go out of business because they’re brick and mortar.
Plus, the business owner is not really an entrepreneur. They didn’t do their due diligence. They didn’t study their area and run demographics. And most businesses fell in those first one to five years because they simply run out of money. They run out of working capital. The startups now are younger generations and they are forward thinkers. They’re problem solvers. They’re solution-oriented. So they’re not just building another coffee shop. We don’t need another coffee shop or another restaurant. So they’re looking around and saying, well, what’s the problem? What’s the solution? How can I fix this problem? Right? And so you have a lot more tech businesses. You have a lot more e-commerce businesses. You have a lot more businesses that are started by, like I said, newer generations. But also, people got laid off from their job during this pandemic. And a lot of people are going – wait, what can I do to start my own business and really make a difference in the world? Now, on the flip side of that, for existing businesses, existing businesses are going out of business because of what I call lack of AIM. Aim is “Always Innovate and Market”. So business owners become complacent. You know that. I mean, look at Toys R US. They didn’t do anything different in 75 years. Look at Blockbuster. Blockbuster had the opportunity to pick up Netflix, to buy Netflix. They sat back to nothing and are out of business. So this is going to become complacent. They also, really they’re in love with their original baby, with their original concept, their original idea. And they don’t like change. And that’s a big problem because you’re either growing or dying. There is no in-between, which is why I always tell business owners, you got to get comfortable with being uncomfortable. And so that’s the big reason that so many business owners are going out of business because they stop innovating. Here’s the bottom line. The marketplace has changed dramatically. The way consumers purchase products and services is completely different than the way they used to place them or buy them. And you can pick Amazon for that, you can pick the Pandemic for that. But you really got to innovate, and you really got to look at your industry and you got to ask your client, what do you want? What do you want to experience when you do business with us? What can we do to make your experience more pleasant? What can we do to make it easier for you to do business with us? And you got to innovate. You’re either innovating or like I said, you’re dying.
It is interesting that when we look at – especially the historical changes and then the tightening up of that type of thing, I mean, the pandemic obviously reshaped everything, and it made a huge opportunity for a lot of businesses. There are small environmental changes that can ravage a business. I remember I lived in Vancouver, British Columbia, at the time when the Olympics were coming. And so they said, well, we’re going to build a subway from the airport to the city to make it easier for the Olympics. So it seems like a fantastic idea to build the economy. What do they do? They tunneled underneath the main roads, and in order to do so, of course, you block off the road because you can’t be driving while they’re tunneling. Well, that took 14 months and literally destroyed every business on that road because they were all traditional little tiny met restaurants with local businesses and no parking other than two spots in front. And I think to myself like good galley in that kind of a snap, that stuff can occur over snap, a snap decision that has a 24 month effect, whatever over. It took a few years for it to really finally pay out.
But their inability to go into a new area of the market to attend to a new customer, to figure out a way to get out of that thing, that single event ultimately wiped out. And we see that often, right? And it’s not just whether it’s going towards exit ultimately, but just going towards sustainability if a single market change can fundamentally affect. You taught me this lesson, and I hold it, it’s in my heart every day. And I think this because we talked about this idea of solopreneurs and the risk that people think that they’re in business when they’re a solopreneur. And you taught me these words, if you stop working and the business stops working, you are not in business.
You have a qualified job that you got to work with me versus the business that works for you.
And it reminded me and everything I do I have that in my mind. I’m like, what would Michelle tell me to do to automate this? Make it repeatable, make it scalable, offload it, whatever I can do, not just outsource. Also, another lesson you taught me, just outsourcing it, putting it on Upwork or Fiverr is not actually running a business because you’re not building a team. You’re not building a scalable system. These lessons stuck, Michelle. And I thank you for that.
Glad I can make a difference.
So let’s talk about the book, because not only did I enjoy it thoroughly and I’ve read it and it’s marked up and highlighted and bookmarked all over the place. But I’m not the only consumer. Lots of folks taking the stand. Let’s talk about how the book has been doing.
Well, the book has been doing great. I think I was under show in January and you know, look, like you said, something can happen and completely stop us dead in our tracks. And actually wrote “Exit Rich” in 2019 and we were supposed to publish in 2020. And then this pandemic happened. So we ended up publishing June of 2021. Now is on the show, I believe, in January. So the book is really great. It’s a Wall Street journalist bestseller, not in New York Times, but it will be.
We’ll get it there.
So Wall Street Journal, USA Today bestseller, and it’s in the Hudson bookstores and 99 different Hudson bookstores all around the United States. We’re getting boring recommendations. What I really love and what I guess really inspires me to continue to write and continue to educate is when I get letters from entrepreneurs that have been in business for decades. And we had a media company that emailed us and said, look, Michelle, your book changed my life. That’s what changed my life. I’ve been in business 20 years. I thought I was doing everything right. I read your book and realized I was doing everything wrong. I basically took your book step by step, broken out to different divisions in my company and told them follow this book to a T for everything that she says. And he says it’s really changing his business dramatically. It’s going to come to us in about two to three years to sell. And then we had another owner entrepreneur in Texas. It’s a pharmaceutical company. And he actually bought the book before the booking and launched. So we emailed him the digital version. He printed it out in ledger paper and highlighted everything, gave it to different teams, his teams, and said, listen, do everything she says, on the people, on the product, on the processes, on the proprietary.
And he came to me to sell this business, and we’re going to be selling it for the $25 to $50 million range. And so I love getting those letters. I love getting those calls because it means I’m making a difference. And that’s what inspires me. That’s where my true passion is – is to really help entrepreneurs, really help business owners be able to save that business and be able to not become a statistic of the 80% of the statistics don’t sell, but become in a 20% to where you can sell for premium for maximum value and exit rich. That’s really what my passion is. It breaks my heart when I see baby boomers, their heart, their energy, made huge sacrifices along the way. These baby boomers are actually poor. Many of them are losing not just their business assets, losing their family assets, too, because they take out a mortgage against their family home. And that breaks my heart. I really want entrepreneurs to be able to really retire for their desired sales price and exit rich so they can finally sit back and enjoy the fruits of their labor, because as entrepreneurs, they make huge sacrifices. We go into this and we’re going to have better quality of life.
We’re going to have more time, we have more money. Well, guess what? We don’t always have that right. I talked to a business owner who’s in business for six years. He said, Michelle, I miss every one of my kids soccer games. I miss my girl’s plays. I miss pretty much everything in life. My life just passed me by while I was working in my business. While I was working in my job.
Versus my business working for me.
I still remember years ago working in retail, and there was a fellow who had a restaurant inside a mall. So in Toronto, Ontario, was living in Canada at the time, very busy mall. And millions of people come through here and traffic every day because it’s a subway stop and there’s lots of office towers nearby. And so it was like a falafel restaurant in the food court. And he was doing an incredible amount of business. But it wasn’t enough that he had real margins. And what ended up happening was he ended up after a few years of working there, selling the business to go back to work for a restaurant, because in the end, his direct money he was making to take home to his family was less than he could make in an hourly rate. But he was working open to close every day.
Yeah, that’s sad. That stories are prevalent and it’s very sad. So it’s always been my mission. So they help entrepreneurs build a business, not a job, and really build people, because you don’t build a business. You build people and people build a business.
That’s why I really enjoyed the book, not just in the processes and lessons that it teaches which are real, tangible things you can do that work. I know this. I literally am living the experiences of doing it. So I’m not like I said, I chose my guest. And it was a blessing to know that I was going to get to spend time with you to thank you for this, Michelle, because on top of that, there’s additional stuff that comes from the book you’re able to get in. You’ve got lots of online community. You’ve got great folks that you can get connected with and learn lessons beyond what’s written in the book. But now let’s talk about what’s coming up, because not only is the book printing and doing well on that side, but you’ve got an audiobook coming out as well.
We do. And the main reason for that is because everybody’s asking me, Michelle, I have the printed version but I want the audio so I can listen you know during my commute to and from my company or wherever they’re traveling. So we did come out with the audio version just a little bit more on Exit Rich. Exit Rich again, is endorsed by Steve Forbes. My co-author is Sharon Lechter who wrote “Rich Dad, Poor Dad” with Robert Kiyosaki. Kevin Harrington is the Ford. And Kevin Harrington was the original shark of Shark Tank in the United States. I think in Canada you all have Lionston, I think it’s called. Yeah. Anyway, so Exit Rich, I just want to be crystal clear. Exit Rich is not just about selling the business, because in most cases, you don’t have a business to sell. Exit Rich is all about, number one, figuring out what do you want, what do you want? What is your end game? Like Steven Covey always says, start with the end in mind. Exit Rich is all about planning your GPS exit model, planning your exit from the beginning, and really determining what is your destination. What do you want to sell your business for?
You can’t wake up one day and say, I want to sell my business for $20 million when you haven’t grown a $20-million company. So you really have to plan it in the beginning and say, I want to sell for $29, and then you have to build that $20 million company. You need to know who are the buyers, what’s their buying criteria, where do your numbers need to land? So you need to know all of that. And you also have to go through what I call the “Seller Sanity check” to really check yourself to see what’s the most important thing to you. Is it what you walk away with. Sometimes it is, sometimes it’s not. Is it making sure your place is taken care of? Is it to make sure that your clients are in good hands. Is it making sure that the new order is going to grow your legacy. So you really have to go through that seller sanity check. And then one of the most important lessons of Exit Rich is to build that solid infrastructure, because it’s the infrastructure of the people, the product, the processes, the proprietary assets, the patrons – diverse client base, the profits.
Those 6P’s is what will maximize value. Those 6P’s is what we’re taking it from a three multiple to five, to six, to eight to ten. And then it’s all about how do you package your business for sale. And then so the first half is getting it ready to actually build a sustainable, scalable business. The second half is all about selling your business. So it’s almost two books in one. And so we all come out with the audio version in May. Go get it today. You can go get it right now. You can get it in apple – I believe it’s in Apple, Barnes & Noble and Kobo. So Kobo, Barnes & Noble and Apple – $2.99 which is less than a cup of coffee, less than a quarter pound of cheese meal at McDonald’s. So with $2.99, you can get the audiobook After May, it’s going to go back to its original price, which is going to be $24.99 I believe.
And so with that $2.99, you also become what Eric was talking about – an “Exit Rich” club member. So you get access to documents. Documents to operate your business. Like sample employee handbooks, non-competes, policy and procedure manuals to sell your business. Sample prospectuses – what they should look like. Sample letters of intent, due diligence checklist, closing documents. All the stuff you need to operate your company and sell your business are there for your download and your use. And guess what, Eric? These documents cost me over $50,000 to create, and you can get them for the $2.99.
Yeah. So it’s amazing value and go out and get your copy today. Again, that was Barnes & Noble, Apple or Kobo. And it will be worth every single penny. I know Eric read the book so he can attest to that.
I stand 100% behind. I bought it for full price. It’s funny. I think even your production crew were like, hey, let us know if you need a copy of the book. I said, oh, too late. I knew I could ask, but I also knew I was willing to pay for it. So I wanted to make sure people know that me endorsing this book is 100% because I believe in the book. And like I said, I’m using it in lessons that I’m doing to build things that not even looking at a near term exit right now, but to build sustainable processes and a sustainable business, because that’s just healthy for me. Right. I know what my intent is in growing what I do. And like you said, you set that. What is your expectation, what is your goal? And then how do we build processes to make that business achieve that goal? I can tell you on that side of the lesson. I haven’t gotten to the exit yet. But like I said, we’ll talk in a couple of years when I’m a Michelle Seiler-Tucker, you’re selling my business. We’ll do business together that way, too.
And, you know, I think you just hit the nail on the head, too, because you might say, well, I never want to sell my business. That’s okay. First of all, I never say we’re number one, because you never know what life has in store for us. And number two, even if you go and sell your business, at least you’re building a valuable asset. At least you’re building a sustainable business that can run without you. So you truly do have financial freedom. So you truly do have a better quality of life and you’re in charge of your own destiny and your ability in a business that you can scale. And if the situation ever occurs that you do have to sell, you’ll have a valuable asset. I get calls all the time, Eric, from spouses, where they say, like, a lady called me from Dallas, her husband dropped out of a heart attack at the age of 45, left her with a pile of debt and asked me if I could sell her business. Well, guess what? He didn’t have a business. He had a job. He had a construction company. He didn’t have any employees. He had all subcontractors. He didn’t have any processes, no possible procedure manuals. Everything was in his head. So when the business owner died, he died. So the most important thing here is set your family up for success. We never know what’s in store for us. So we want to make sure that we’re taking almost valuable asset, which is our business, and we want to make sure we’re setting it up for success. So if anything does happen, God forbid, our family will be taken care of.
Yeah. And even as a successful transfer, why wouldn’t somebody want to pass it on to their kids and give that option? Right. People often just think exit means sale, but exit is bringing the business to a new stage and you yourself are exiting. But it’s only good if you can pass that on to somebody else and they can continue to grow it and know how to operate it. Definitely feel and for $2.99, it’s a crime not to get this. There is nothing that is worth more than the time you invest in reading this book, for sure. So I know I will be an early listener and a repeat listener because it’s also not like a read and walk away situation. It does play out like a manual that you want to revisit and recheck. It’s very well written in that way. You and Sharon work together and created a great book.
Well, and that’s why we came out with the audio version, because like I said in the beginning, so many of our readers are saying, look, do you also have the audio version? Because we want to listen in the car, not just read it. So go out there and get both. But if you don’t get anything, get the audio version. Make sure you get that audio version and you’ll love it. It also comes with all the supplements. So like all the glass and charge and things like that that we have in the book, the surveys, all of that will also come with audio version.
That’s always the funny thing when I talk to people and they’re like, how can you listen to a business book? Because it has lots like charts and such. I’m like, well, because they come with a PDF, you can get all those assets, which is great. Now as 2022 kind of a wild time. We’ve got inflation, we’ve got a lot of things going on. But Michelle, what’s the positive outlook? What can people look to do in a good way to embrace sort of current market conditions?
I mean, like I’ve always said, innovate, take a survey of your clients, of your market share. Really survey your clients because so many business owners really lose that perspective. Why are you in business? You’re in business to serve your clients, right? Without clients, without users. If you’re a tech business, if you’re a SaaS business, you got to have users. If you don’t have any users, you don’t have any business, right? So really take stock of your clients, of your market share and actually go back to your clients. A lot of times we think we know what we want our clients to experience, but you really need to go ask your clients. Mcdonald’s did this back in 1940s when they created the fast-food McDonald’s chain and they created a fast-food system. They asked clients because they did surveys and they asked themselves, what do we want our clients to experience? Three things. We want them to get hot food. It’s great-tasting, 30 seconds or less. Come up with the three things you want your clients’ experience, but really look at the markets. Look at what’s happening. Make sure that you research and not just learn from your industry, but learn from other industries as well.
Look at some of the leaders and what they’re doing. Like, look at Amazon. I mean, Amazon is a great company to learn from. So is Disney. So is the Ritz Carlton. There’s so many different, so is Apple. So many different companies to really learn from, because you can take some of the things that they’re doing and adapt it to your industry. But innovation is the name of survival. Innovation is survival right now. With inflation and everything else and the cost of just doing business and retaining employees and everything, you just got to get really creative. You got to throw the box away. You got to do things different than you’ve ever done it before. And if you can’t really see clearly because you’re so in it and sometimes we’re in our pocket foggy, sometimes you’re so close to it, you really can’t see it. Like I always say, it’s hard to read the label. It’s hard to read the label from the inside of the bottle. You need an outsider’s perspective to read the warning sign to keep you out of the danger zone. So if you can’t really see what you need to do differently and innovate, get a mentor. Get somebody who’s been down the road you want to travel. Learn from other people’s mistakes. You don’t have to learn from your own all the time. Get somebody out there to see something that you can’t see yourself. I mean, that’s what I’m really good at. I’m really good at looking at other businesses and asking the question, what business are you in? What’s your superpower? What business should you be in? And those are very important questions to ask ourselves right now. Amazon did that back in the 80s. They asked themselves, what business are we in? We’re in the fulfillment business. What’s our superpower? Fulfillment! What business should we be in? Fulfillment for everybody. But it’s true, right? Same thing with McDonald’s. What business are we in? Everybody says they’re in the restaurant business. No, they’re not. They’re in the real estate business. Mcdonald’s are huge because of Ray Kroc’s starting McDonald’s Corporate Realty, gave him leverage over the McDonald brothers. It is the reason why McDonald’s is the largest real estate holding company in the world. But guess what, Ray Kroc didn’t come up with that on his own. As an outsider, go watch a movie – The founder, that was an outsider looking in on Ray’s conversation when he was trying to borrow more money after being overlapped. So a lot of times, it takes an outsider’s perspective to help us see things more clearly and help us really be able to innovate. But you can’t do the things the way you’ve always done them. The world is changing so quickly. Consumer’s buying habits have changed dramatically. Number one because of Amazon and number two because of this pandemic. And you really got to look at all that and eyes wide open. And don’t do business the same way you’ve always been doing it because you’re going to lose market share and end up going out of business.
Yeah. And if anything, like you said, the lessons are out there to be had. And founders, builders, operators, they love to share lessons because it’s as important for them to talk through what they’re doing. It actually is a great validation. I forget what the process is. Something like, see, say, do teach that’s the way that they do medical school. Right. You watch it, you learn about it, then you explain what it is because by having to explain it, you’re rationalizing it while you’re explaining it. Then you do it and then you teach it. And that cycle flow, there are lots of people who are at that teach phase. If you’re a gamer, it’s like a cheat code for business. Like, why would you just wait to turn a hard lesson on yourself when you can find somebody else that maybe has already had that lesson learned and impart that on them.
Right. But before you get that mentor, we are going to make mistakes along the way. I was just talking to a roofing company. And they’ve done really well in three years. Victor’s EBITDA is earning some franchise taxes. Depreciation is around 2-3 million. In three years, it’s pretty good. And they’re like, Michelle, we made every stake in the book. We made it. And I said, did you get a mentor? And I said, no, I wish we would have. Three years ago. They said, but we felt forward. We keep selling forward. We keep learning from our mistakes. And you know what? If you don’t quit, you didn’t tell.
But they were cracking me up because they’re like, well, nobody can make as many mistakes as we have made. And you know, what they also did is they didn’t just learn from their industry, their roofers. They went and learned from the funding trade, from the logical trade, from the HVAC trade, from all other different service trades instead of just learning from their own industry. And then they figured it out. And then they became marketing geniuses. And it really blew up their business in pretty much a year and a half. So half of the time they made all the mistakes. The second half they go on their business exponentially. But go out there and get that mentor. And that’s what I’m talking to them about. I’m like, okay, I’m going to start a company, but then I want you to go help others. I want you to go help others forward and have them learn from the mistakes that you’ve made in the past so they’re not having to make the same mistakes. I mean, we can all learn from each other. We can all help each other better ourselves.
That’s it. And like you said, it’s how you react to it that will change the outcome, right? There are lots of mistakes that are made, and there are lessons learned from them, and it’s what you do beyond it. There’s a great I think it’s like an Instagram sort of meme or video. And this guy just started talking the back almost like a preacher. And he says, practice, practice, practice. Like he’s talking to crowd. He goes, practice makes what? And you hear the whole crowd go perfect. He goes, Absolutely not. Get that mindset out of your brain. He says, practice makes better. Better means more practice. That’s really how we have to think. Like, you do it and you will make mistakes and you will survive them and you will learn from them, hopefully.
I tell my daughter the same thing. My daughter’s in gymnastics and the apparatus she struggles with the most is the balance beam – she’s great on everything else. This is her first year in competing and she hates practicing the balance. And like, you have to practice, practice will make you I never say perfect. I say practice will make you better. It’ll make you fall less. It will make you fall less. It’ll make you get a little bit higher score. And I had an interesting gentleman on my podcast the other day, Peter Taunton, who was founder of Snap Fitness, he says 10% is what happens to you and 90% is how you react to it.
10% is what happens to you and 90% is how you react to it.
Yeah. There is very much that mindset. And that’s really why mentoring is important, because even the strongest founder’s mind and the perseverance you got, you can still get stuck sometimes and you can still get hung up or feel like you don’t have a path. And going to the community and finding folks that are, like you said, even better sometimes to leave your industry and look outside because a lot of those practices transcend the industry. And in fact, even the best things come. Right. Look at how many companies like you said, McDonald’s, they happen to make burgers. But I remember when McDonald’s and this is back in the 80s, I think, or the 90s, they decided to add pizza to their menu for a very short period of time. Rightly.
I don’t remember that.
Yes. It might have been a Canadian thing. And literally overnight, McDonald’s became the largest pizza restaurant on Earth because they rolled it out to every restaurant across multiple countries. Right. So that scale of business meant like if they are in the scaling business, they were in the logistics business. They were like, that was the thing they were doing. So you can look at that lesson. I don’t want to go to McDonald’s to learn how to cook a burger. I want to go to McDonald’s to learn how to move people in through the restaurant experience.
And how to really create those processes in system to where if you got to, unfortunately, hire someone, McDonald’s get rid of people all the time. People quit all the time. Mcdonald’s can take that SOP checklist and have an employee train within 30 minutes and look at the drive-through or any other position at McDonald’s.
So to really learn their systems or processes and how they do things is just amazing because again, it’s all about those processes and it’s all about getting the right people in the right seat to run those processes. Mcdonald’s and Burger King is a great example of that.
There are many things. And even though some people get stuck in the idea that I don’t want to make a checklist out of my vision, well, you’re not. You’re making a checklist out of the operations to achieve your vision and so, don’t ever get lost in the idea of your vision.
What happens to your vision if you don’t have processes. You would never achieve your vision. That’s what happens to so many entrepreneurs, because entrepreneurs are visionaries. I mean, most of them are visionaries. They’re not integrators. Entrepreneurs are like squirrel, squirrel, squirrel, squirrel and he’s visionaries. But they need a good integrator. Every entrepreneur has to have a good integrator. An actually fun moment with entrepreneurs is, there’s more entrepreneurs by the neuron integrator? There’s really good integrators. And that’s what every entrepreneur needs is that great integrator to really get their vision onto a policy procedure and they don’t really get their vision into implementing it.
Well, if you want to build for the right outcome, then you got to think like you need to Exit Rich. I can tell you, like I said, so congratulations on the release of the audiobook and for folks that are watching and listening, get on it, $2.99. This is absolutely, I’ll buy a bunch of copies, drop a comment on the YouTube. I will make sure I enrich people with this. And a lot of my friends are getting a copy right now. I can tell you because this is absolutely worth it.
You got to be out of your mind if you don’t get it for $2.99. You must be out of your mind.
It’s always amazing to me when people be like, well, they’ll negotiate by 10, 20, 30, $50,000 on the price of a house. But then it’s like $2.99 for a book that could change the future of my business success. If this is the $2.99 you’re fighting in your head over, then maybe you shouldn’t be in business to start with.
It’s really giving up a cup of coffee at Starbucks.
Absolutely is. So Michelle, thank you.
Coffee is like $5 now at Starbucks.
That’s it. That’s it. 100% ROI, I can guarantee that. Michelle, thank you very much. And of course for folks you can go to exitrichbook.com. That’s where you can find it. I’ll have links for everybody to get to it and look forward to having you on again as we get further into the year and hear about how the uptake has gone and hopefully that inflation. We’re on the right side of inflation and the economic story. It’s going to be an interesting year ahead for sure.
Yeah, I tell you, it is definitely going to be an interesting year.
And Michelle, I guess I should say just in case any other, what is the best way for folks that they did want to get connected with you? Of course we will have your own website also there. But what’s the best way to reach out?
Yeah, so they can reach out at seilertucker.com. If you want to take the 6P quiz to see how you stack up and how you rate, you can go to seilertuckeracademy.com to take that quiz. Follow me on social media – @michelleseilertucker everywhere: Instagram, Twitter, LinkedIn, and then you can also listen to my podcast Extra Rich.
It is fantastic. I was going to say, I also forgot to tell people to go check out the podcast. You got a great array of guests and it’s really well done so I appreciate the listen for sure. Michelle, thank you very much.
Sponsored by Diabolical Coffee. Devilishly good coffee and diabolically awesome clothing
Michelle Seiler Tucker is a #1 bestselling author and leading authority on buying, selling, fixing, and growing businesses. Michelle joined forces on her new book, Exit Rich, with Sharon Lechter, finance expert and co-author of Rich Dad Poor Dad, to create a must-have guide for all business owners – whether they’re gearing up to sell a business now or just starting to build out their company – to sell for huge profits in the future.
We explore tons of solid lessons in buidling and growing a successful business, the reasons the market data you think you know are wrong, and so much that is needed as real truths in business for startups and major organizations everywhere. Thank you Michelle for sharing so much great info!
You can get a preview of the book at https://exitrichbook.com which also gets you the hardcover copy to you when it launches in June. That gets you access to Club CEO and much more as well.
You’ve brought a lot of great information to the market. You’ve got a recent book called Exit Rich. We got a lot of stuff we’ll talk about. So with that, Michelle, do you want to give yourself a quick a quick bio to folks that are brand new to you? And then we’ll talk about the book and in your background, what brought you to write it?
All right, so I’m not sure what you want me to say on my M&A mergers and acquisitions, Michelle Seiler-Tucker been in business for best selling companies a little over 20 years. I personally sell 500 businesses. My team has.
So my myself and my team have sort of a thousand companies and we’ve done thousands upon thousands of valuations. I also specialize in buying, selling, fixing, growing companies. So I’ll buy businesses, flip them. I partner with business owners, investing my time, energy effort and capital and resources to put business owners on a bill to sell program. And like I said, what we really specialize in doing is fixing businesses because eight out of 10 businesses will sell, according to Steve Forbes.
And so we fix businesses, we grow them. We put them on a bill to sell model and we merge businesses and sell businesses.
So that’s what we do at any given time. On five to 10 businesses, I’m actually building to sell.
Now, that obviously has come from you’ve effectively built a strong system around what it is you need to do to be successful in this.
I’m curious, Michelle, what was the background that brought you to to taking this on as a as a task in your first time show? And I forgot to mention, I’m an author of three books.
That’s right. Yeah. Not just one book. Of course, it’s a rich the most is one we’ll talk about, but we’ll talk about the others as well. You’ve got it. You’re very prolific. What brought you into being in the business of buying business and mergers and acquisitions? Michelle.
So I’ve always been an entrepreneur of all many different companies, even from a very young age. And I did go into franchise sales, franchise development and franchise consulting and sold hundreds and hundreds of franchises.
But I kept having lots of buyers ask me for existing businesses and how many existing businesses, because I was selling new franchises and I was actually partners in different franchise laws and equity partner. Then I decided, you know, there’s so many buyers out here for good existing businesses versus new startup franchises that I should start my mergers and acquisitions firm. And that’s really how I got started.
Now, the you talked about being an early entrepreneur, what actually gave you the the entrepreneurial bug? Was it because I’m imagining you? Probably that’s something we we develop, but we learn about often quite early in our lives.
Yeah. I don’t say there’s anything that gave me I didn’t really grow up in a family of entrepreneurs. My dad had a couple of businesses. He wasn’t really I wouldn’t say he was very successful, but he had a few businesses. Other than that, I didn’t really grow up with entrepreneurs.
I just knew from early on that I didn’t like to be told what to do and I want to do my own thing, march to the beat of my own drum. And I just knew I always knew I wanted to be my own boss, I guess.
Yeah. My favorite thing is founders often described themselves as unemployable just because it’s like they they know what they want to achieve and they certainly are. They can’t take direction in order to get to it. So, yeah, I mean, we still got to be employed by our clients, right? Our clients. Employers don’t we don’t listen to our clients and don’t follow our client’s instructions. Sometimes we can become unemployed very easily. So rather, you want to be employed or be told what to do.
Even if you own your own boss, you still are answering to somebody.
Now, when you were working through in the franchise area, you know, which is developed on the idea of using a systematic approach. When did when did you sort of see that as an opportunity to go outside and bring that systematic approach than to, as you said, like existing businesses? And I’m curious that that first one or the first few that you you decided to take on.
What I’m sorry, what systematic approach are you referring to, or just like when do you when did you see how you could take the practices that you had learned from working in the franchise and then bring this that sort of those methodologies to an existing business?
Yeah, so it’s extremely different. And if you’re not familiar with it or most people aren’t, it’s very different. I mean, becoming a partner with a new franchise or a franchise or and doing a franchise sales franchise development, franchise consulting is extremely different than selling existing businesses and fixing and growing and going to sell existing businesses. There’s really very little similarity. The only similarity is maybe in the existing franchises or because existing franchises are really has to operate on what I call the six P’s, the six P’s that we talk about in my book, Exit Reg, if they don’t build a vault, a solid foundation of solid infrastructure on the six PS, they’re not going to they’re not going to be sustainable.
They’re not going to be able to scale. They’re not going to be able to stay in business for very long. So there are some similarities there. As far as the main franchise corporation, as far as selling new franchises, new franchises is completely different than selling existing businesses is really zero similarities because for a new franchise, for new franchise, we’re looking for the franchisee or qualifying the franchisee in a financial capacity and our skill sets. We need to do that with existing businesses.
You qualify buyers on their financial capacity and their skill sets. But with a new franchise, we’re also really strongly looking at demographics and what we should place. This new franchise, you know, where they want strip mall location, we should put it in, you know, and then we’re helping them hire their people and we’re hiring. We’re helping them really based our business and start their business on what I call the Steve six PS with an existing business that we have the location already have the people in place.
Right. They already have and are operating on many of the six figures, maybe not all, but some of them. So there are some similarities, like I said, in a franchise or type of it. But as far as our new franchises, compared to existing businesses, it’s completely different.
When you saw the and the opportunity to affect somebodies growth and, you know, help, as you said, like to build towards sale, you know what what was what’s exciting to you about seeing that? You know, obviously there’s a there’s both a business and a people impact. I mean, I’d love to hear, you know, what what drew you to be able to bring people through that journey to prepare them for sale?
You mean for existing or for different existing? What prepared me, I think it’s already many different companies in many different verticals sitting behind a desk knowing what works, what doesn’t, you know, really figuring out. Doesn’t matter what industry you’re in, the six PS or the six PS and they they you know, it’s a foundation that you really need in every vertical regardless. And I think that’s kind of what prepared me to seeing what works, what doesn’t work.
And, you know, most business owners, a lot of business owners are not sellable. Like I said before, 80 percent of businesses don’t sell. And the reasons for those are all similar. It’s not necessarily make the same mistakes over and over and over again.
And so that’s, you know, spending 20, 20 plus years in the trenches is selling franchises and then selling businesses.
I think all of that is what prepared me, not to mention my own company is that I’ve done I’ve operated.
And that’s the the interesting thing. As you said, a lot of it’s repeatable things that you see.
And but for those business builders and owners, I think the tough part is they’re so they’re they’re very sort of myopic in their view. They can’t see outside of their own set of of running the organization. It’s probably and this is why they need, you know, you to come in and say, look, I’m I’m looking into what you’re doing and I’ve seen this play out and it’s not going to play out well. Right.
What’s the what’s the reception when you begin to consult through that process and have to kind of show people the works of the challenges that they’re facing?
So some are open to change and some are not. I always say you can only grow the business as much as you can grow the owner. I don’t know if you’ve ever watched the show. Marcus Lemonis The profits on CNBC, but he gives them clear instructions of what to do and what to change, and they all push back. I don’t think anybody just takes it and does it. Nobody really follows his lead and his instructions, even though he’s really clearly the expert.
And same thing with me. I’m clearly an expert at what I do, you know. So, yeah, we get a lot of pushback because, again, they’re entrepreneurs. They don’t want to be told what to do. They don’t want to answer to anybody and, you know, like us. And it’s tough because you’re right. I mean, they don’t see things when you’re in your fog, it’s foggy and you really need an outsider’s perspective, you know, to to help really read the warning signs and keep you out of the danger zone.
But business owners have to be willing to listen. They have to be willing to, you know, get advice from experts, somebody who’s been on the road before.
And they have to be willing to to change and make change. And some are. Some aren’t. You know, I’ve I’ve sat in meetings and told business owners, don’t tell your employees that you’re selling your business, and the next thing to do is turn around, tell their employees. And then I wonder why 50 percent of the workforce quit sooner.
So it’s just.
Is it just business owners want to do things their own way, so it’s really our job to to try to get the business owners to understand that this is for your own good. This is for your protection. This is to help protect your company and help maximize your value. And that’s what we do. You know, we we don’t go in and force things. We do it from a educational perspective versus just trying to slam something down their throat.
And luckily, you’ve got the believability because you’ve got proof in execution, right, and I think that will hope that that helps those those founders to at least trust.
But like you said, there’s a there’s the psychology of the founder.
They’re pretty sure they’ve got the right idea in the market.
Just isn’t ready versus.
Yeah, maybe you need to meet in the middle with the markets. Right?
I mean, put yourself in their shoes. You know, if you’re running your business and the day to day doing all this stuff and somebody comes out and says, you’re doing everything wrong, the first thing you’re going to do is push back. That’s right.
So you don’t want to go in there pushing because then you’re going to automatically get pushed back.
So you want to really go in there and and look at all the things that they’re doing. Right. And highlight all the things that they’re doing right. And then come in and bring in the areas of opportunity to where they can really affect change and growth.
When you raised it earlier already, you talked about it like we have to listen to our clients and ultimately our customers, right. And it’s that is something that quite often it’s also it’s a dichotomy of the founder that they have to be very like they have to be aiming towards a vision that strong, you know, a mission that’s that’s big quite often. And it’s a weird thing of like they have to listen to the market, but they also have to create a market sometimes.
So when when you’re working with founders, like, how do you kind of merge the reality of the market that they’re facing and yet help them to make maintain their original vision? Is and or is it possible? I’m just curious in in how that’s played out in some of the examples you’ve gone through.
How do I help? I’m trying to understand your question.
So like when because like a founders vision is often built on like we are preparing the world for what it doesn’t know it needs, like they did when he came back to Apple.
Right. But it’s a tough thing when you have to they have to survive in order to execute that vision. And how do you bring the reality of market economics and survival to still staying on the path to executing those big visions?
Well, you know, I tell you, I don’t know how much research you’ve done on the business landscape in the United States, and I think I’m going to take a few minutes to educate. But when I wrote my very first book, Sell Your Business, for what it’s worth in 2013 and did the research back then. Ninety five percent of all startups from one to five years will go out of business. Right. Right. So when I wrote Exit Rich in twenty nineteen, twenty twenty before the pandemic occurred and did the exact same research, I learned the business landscape has actually flip flopped.
It’s only 30 percent now of startups that will go out of business. Those one to five years are not at great risk anymore. Only 30 percent, which is good news to Startup Nation. However. On a twenty seven point six million companies, those businesses have been in business ten years or longer. Seventy seven zero percent will go out of business.
It used to be, if you’re in business five, 10, 15, 20 years, you’re in business for the long haul. Not anymore.
The longer you’re in business, the more you’re at risk of going out of business. Now, you’ve heard about the big public companies, Toys R US being in business. Seventy five years goes out of business.
Steinmark, been in business forever, goes out of business. Pier one, Montgomery Wards is in trouble. J.C. Penney’s is in trouble. Jeanne-Marie goes out of business. Godiva chocolate closes down fifteen hundred locations. GNC closes down nine hundred locations. You know, Blockbuster went out of business because I saw Netflix. I saw the writing on the wall that opportunity by Netflix. And they did nothing, nothing at all and end up going out of business.
That’s the big public companies.
What you’re not hearing about, all because the media doesn’t talk about it. All the private companies on every street corner, in every town, in every state across our great nation, these business owners are all going out of business. They’re exiting poor, not rich. Like my book says, they’re selling for pennies on the dollar. They’re closing our business and many of them are filing bankruptcy. And they’re losing not just our business assets, but the person wants us to because most business owners pierce that corporate bell.
So why is that? Why is that? Well, I’ll tell you why that is the number one reason why the business landscape has changed and flip flopped before the pandemic is because business owners stopped doing one thing. They stopped doing a lot of things.
But the biggest thing is lack of aim.
Aim is always innovate and market, always innovate and market. And many of these business owners get stuck and their ideas of the way they started their business. And they want to do things the way they’ve always done them. You’re either growing or dying. There is no in between growing or dying like Blockbuster did nothing different. Toys R US did nothing different in seventy five years. So business owners have to continue to innovate. If you don’t innovate, you will die.
If you don’t innovate and market, you will die. So to answer your question, I educate business owners on, OK, this is how you started your business. This is the basis of your innovation, but you haven’t done anything new in 20 years.
And here’s the bottom line.
Consumers don’t purchase products and services the way they used to. Whoever makes it easier for the consumer to do business with is a company that’s going to win.
Amazon is winning because Amazon.
Amazon doesn’t really innovate. Think about it, what does Amazon do they make it so easy for the consumer to purchase products, you can practically buy anything, including a horse, and have it delivered to your house in two days.
So not only do you have to innovate, you have to go back to the consumer and ask the consumer, what do you need? What do you want? How can I make it easier for you to do business with our company? Business owners stop innovating, they stop marketing, and most importantly, they stop asking the customer, the client, the consumer, what do you need? What do you want? Or be preemptive and figure out what they want, what they need, like Steve Jobs did.
Here’s the other thing. If you’ve been in business 20, 30, 40 years, your customers are probably aging out, right? You’ve done nothing new and nothing innovative in which to keep those consumers doing business with you.
But more importantly than that, going after the other generations, Generation X millennials.
Right, yeah, now this is interesting and like the statistics you talked about, like there’s a definite a total inversion and unfortunately people are still hung on the metrics they remember they know the stats of yet 95 percent plus of startups will fail. We still quote those numbers.
So it’s it’s wrong, right?
This is this is the horrifying thing about, you know, in the same way people always say you never get fired for buying IBM. I know 11 people that have been fired for buying IBM. It’s because in the end, the week we take this kind of like withI sort of stat that we can have and it outlives its reality, so. What’s missing, Michelle, because you’re you’re in front of the stuff all the time, like how is the how is the market and definitely the media, you know, not grabbing on to this story and talking about it because it’s a huge opportunity for folks to get started.
And that’s what’s so shocking to me, too. I’ve had this conversation with my publicist. Why isn’t the media talking about this job? And he’s like, because it’s not big news. Toys R US is big news.
Kmart goes out of business.
Big news, Godiva closing everything on location is big news. But the private company now has one location that’s been in business for 20 years. Who cares? Media doesn’t care. It’s not big news for them. And so nobody’s really talking about this stuff. That’s why I wrote Exit Rich. That’s why I wanted to start the conversation.
That’s why I wanted to really help as many people as I can. You know, I’ve been on over to on a podcast in the last month or two so that I can get the message out there that so many businesses are failing. And these are the reasons are valid. I mean, small businesses, the backbone of our economy. There’s thirty point two million businesses in the United States employing over half the US workforce. If we lose small business in the United States, we lose jobs, we lose jobs, lose spending power.
You’re spending power. More businesses shut down. It’s a domino effect. You lose even more jobs.
So if we don’t get behind small business, help small business owners, help entrepreneurs, stay successful, build a sustainable business that’s scalable, that is sellable, one day you’re going to have more and more and more bankruptcies, I mean, over more bankruptcies and twenty nineteen even before the pandemic than in any other year.
Well, and that’s that’s always the the interesting thing, and of course, through the course of the pandemic, the world has been shaken up and and it’s hard for us to measure, you know, when the effects will be felt. But this is an, again, interesting that you brought up. Right. Like the bankruptcy said, ridden, but had risen to incredible levels, pre pandemic. So this was already in play.
And people don’t see that.
They just look and say, oh, well, of course, bankruptcy went up.
We’ve been in a global pandemic like, no, no.
This was the the writing was already on the wall.
Yeah. All these statistics have, according to you, is right before a pandemic is even more gloom and doom now. But I mean, you do have more and more businesses have started up in twenty, twenty than any year before.
And some of these startups are really doing well. And like I said, startups only have a 30 percent risk of going out of business. Now, the big difference between startups now and startups before the pandemic are a lot of these entrepreneurs are solving problems.
And they’re not just opening up another coffee shop on a block where you already got six coffee shops or another ice cream ice cream store on a street when you already got 10 other ice cream stores.
They’re actually solving problems or doing online, you know, open up e-commerce businesses, manufacturing, online businesses.
You know, they’re really solving problems. And that’s what entrepreneurship is all about. It’s not just about over another ice cream store and cannibalize in the marketplace. It’s about going out and figuring out what the problem is and then coming up with a solution. That’s what entrepreneurial ism is all about.
It if you look at today, you know, the the the the needs to build a start up and sort of the the capital impact of so different than than they were when, like a 10 year old business, even especially 20 year old business. Right. To to build a company today is, you know, an online process. And, you know, it’s you know, how exciting is it to like what we’ve got ahead of us right now, Michelle?
Like, you can just you can come up with an idea, you can build a business and you can be online before the day is done. Yeah, it’s so exciting because, you know, when I started, gosh, when an online bubble start, what year was that?
The first one. Right. The two thousand and one dotcom one.
Yeah. Yeah. Nowadays is so much easier to start a business. I was talking to a gentleman in Australia yesterday. I was actually on his podcast and he’s like, oh, it’s so easy to start a business. I think he’s got like one hundred online businesses and it really costs you nothing.
And you don’t necessarily have to have employees or assets or inventory. I mean, you can pretty much start an online business without investing too much and be really successful. Now, turning around and trying to sell that online business might be another thing. If you don’t have the solid infrastructure and you don’t have the business built on what I call the six PS, then you might not be able to maximize value. But anybody really. There’s not anybody. Let me not say anybody any you know, somebody who has that entrepreneurial spirit, really, it’s much easier now to start a business than it’s ever been before.
And I think, you know, again, the bottom line is look around us, figure there’s opportunity everywhere, you know? But unfortunately, there’s also people walking around like zombies that they’re not really, you know, conscious and not really looking at things and and thinking about things about what can I do, how can I solve this problem?
And some of the best entrepreneurs in the world are the ones who solve the biggest problems.
And entrepreneurship breeds entrepreneurship, like, you know, I have a coffee shop store, right leg, an online coffee company that I built on Shopify. So because you.
Yeah, because so because the people who built Shopify solved a problem that needed to be solved. And as a result, it allows me to solve a problem that needs to be solved. Right. And and like I somebody wrote a tweet the other day and it was it’s it was unfortunate the way that the response was. They said, look, you can start a business today for under 500 dollars like that. And it’s a wondrous time to be able to do this.
And a lot of people like replied back in a really negative sort of sense of like, this is not true. You know, I’m like and I I didn’t even want to get in the conversation like, no, I legitimately started a business for seventy dollars and it has immediately become profitable. So it’s and it is totally possible to do this stuff, which is why I’m excited. But I’m curious on your thought, Michelle. Where do we need to bring this, like, is this something that we’re missing in education, like in like getting people to recognize that this is a new way of building society and, like, opportunity?
Yeah, I want to address up to two ways. I’ve had many of these online companies come to me.
One was a coffee company and not yours.
And now they’re not for sale yet.
But the problem is with some of these online, a lot of these online businesses is they don’t have any infrastructure.
They don’t have any people, you know, and if you go to my six PS, which I think we should, that’s in my book and to educate your listeners, you know, the number one is people.
And this this coffee company and people that have subcontractors and they didn’t want to let their subcontractors, independent contractors, I’m sorry, independent contractors go along with the business because I want to keep those independent contractors for the next on line business.
So that’s a problem when you’re building a business, any business, whether it’s online sales, business, brick and mortar, you got to have an infrastructure if you don’t build it with an infrastructure. Number one, how sustainable are you really going to be? And can you scale? And more importantly, can you sell and maximize value?
Yes, maybe you can sell to somebody else who wants an online business and are going to work that business as their job. But you’re never really going to be able to maximize value because you don’t have people you don’t really have the infrastructure of what a business really operates upon. And so you’re really never going to maximize value. So all businesses SACE online, brick and mortar, all businesses need to really follow the infrastructure that I talk about in my book, Rich.
That, to answer your question is where do we educate these people?
I think it starts in school.
You know, it needs to start in school. I’m educating my daughter. You know that you want to make money. You don’t just go work for money. Let’s get creative. Let’s get entrepreneurial. That entrepreneurial spirit. What can you do? Well, you got all these toys sitting in the attic. Why don’t we box up those toys and sell them?
Yeah, we can sell them or, you know, we can donate them. But anyway, we really got to get our kids thinking about entrepreneurship early on. And I’m not sure if I’m answering your question, but, you know, I’m actually interviewing Indoctrinated Cobain later today. And he is president of Lazy Boy, I think Panera Bread Company and about a bunch of other companies. And he’s also president, my high point university. And the Virginia campaign has probably got one of the only schools that I feel really teaches entrepreneurship, has business, has classes where they teach you how to go out there and start a business by business.
You know, what business ownership, what business entrepreneurship is all about how to go out and solve problems. And I think it just starts as our kids are little to start teaching them. Kind of like Richard I bought out by Robert Kazuki, you know, just really teaching our kids to think differently. It’s all about really thinking differently.
Well, and even the the opportunity today, like you talked about before, like this is this is an incredible world that we can do things in a different way, even if we look at some of the sort of the even rich dad, poor dad as example, effectively needs a new addition because the world has adjusted. Right. There’s other folks that are, like we call it, the new rich writers. Yeah, it’s we didn’t hear there was no Bitcoin back there.
That’s right. Russia for Florida was right. And, you know, I’m so fortunate that Sharon Lechter, who coauthored which Jeb fought out with Robert Kiyosaki as my coauthor for my book, Exit Rich, because Sharon Lectors, a New York Times best selling author, five times from a shepherd, plus a CPA financial literacy expert and adviser to many different presidents.
And she teaches financial literacy as well. But, yeah, they need another version because there’s there was no online back then. Know there was no Bitcoin back then.
There there were there were not a lot of things. It’s so much easier now, I believe, to become an entrepreneur than ever before.
And even if we look at it like great books, like Built to Last, which were used as effectively like a tome of describing the potential for for taking on a blue ocean strategy in an opportunity. Well, if you look at almost every one of those stories effectively turned over and they’ve actually shed that portion of the business in order to survive. So that built to last wasn’t built to last because the world adjusted, you know, no offense to course, Jim Collins and the folks that did it, it was at a point in time, if you take the context, it was right.
But we have to adjust context to availability of the world today. Right. Right.
So let’s you talked about the the the peace, right, so having six method people is number one, if you don’t mind, Michel, let’s kind of brush through what the what the six message.
And I spent a little bit of time on people because this is where a lot of e commerce businesses, online companies, are getting it wrong. You know, and you got to you don’t look, you don’t build a business, you build people and people build a business. Right.
If you want a business that’s going to be sustainable, scalable and one day sellable, you do have to have the people in your organization. And a lot of online businesses have independent contractors, but they love their independent contractors, so they want to keep up its makeup. So the next new, you know, business that they’re building.
So you really have to have that people component. You always say that entrepreneurs. And that’s one reason, you know, that that coffee shop, they wanted a lot of money and the coffee business, not coffee shop, coffee business, they wanted a lot of money for it, but they had no solid infrastructure. And it’s only been in business for a few years. So there really wasn’t much history there. Does that make sense? Yeah, no.
We’re talking about how an exit, which is all about business as a sustainable business, as scalable so people is huge. You know, a lot of entrepreneurs, they want to do everything themselves. They want to control everything. And I always say you can’t grow unless you let go of the control. So entrepreneurs really need to focus on their strengths, how the weaknesses. But the biggest thing is put the right people in the right seats. And if you are building a business to sell and not just run your business to pocket as much money as you possibly can, then build that solid infrastructure and then the people you really need to ask the question who you know, who handles customer service, marketing, legal, accounting, manufacturing, distribution, environmental, etc.
. The list goes on and on.
The clue, Eric, is that you should never be next to the WHO because you really want to build the business without you. A lot of these online these online businesses, e-commerce businesses, they don’t have any people, right? They don’t. And that makes it very, very, very difficult. A harder to sell because the buyers who are going to pay the money that these e-commerce businesses want because they want a multiple of their EBITA, which is understandable, but but the buyers are not going to run that business.
So you have to have the people in place that been running the business are going to continue to run the business and you can’t just take your people with you and leave the business people because now you have no business. Does that make sense? Absolutely.
And it’s it’s I’m very close to this as I look at like, how do I build this for scale? And you can see how the trap is easy to fall into of like, look, I can just do more stuff and subcontract it out and I can hire people off up work. I can do whatever. Yeah, but that doesn’t build sustainability and it ultimately doesn’t build long term value in what like measurable, you know, sellable value even as measurable growth value.
It’s it’s it may look like it’s working because the graph seems to be going up into the right. But the moment you break the system, the moment you slow down or change. Everything can go in the wrong direction, right, and then let’s say you have independent contractors and subcontractors, Eric, and you’re paying them this, but then the buyer says, I really like the business. I like what you do, but we need to have employees.
Employees are going to cause this.
So that’s going to automatically subtract from Ebola, which is already differential taxes, depreciation and amortization. And that’s going to lower your sales price immediately because buyers pay a multiple of EBITA. So you really got I don’t care if it’s an online business. I don’t care what kind of business it is. You got to build the infrastructure, you know, and that’s why so many of these e-commerce businesses are not selling. Or if they are selling, we’re not selling for maximum value.
I could sell them for a lot more if I had a solid infrastructure in place.
That makes sense.
Absolutely now and this is a good lesson for folks, and I’m always amazed, too, when you look at the like you look at these different sized companies and different e-commerce businesses, you have to very much use that lens to look at how they grew to the point where they’re at today.
Because, you know, look, Facebook has grown with independent contractors and subcontractors actually giving Google has gone with independent contractors and subcontractors. You know, Facebook does have companies that they contract with that have the employees employ the employees, but they still have people, you know what I mean? And I still have a bunch of subcontractors and independent contractors that come and go. So any of these businesses you look at, they have a foundation, they have an infrastructure.
So people is number one.
Number two, because here’s the bottom line, too. If it’s just the owner, like in this coffee business that really was just the owner, they wanted to take everybody else with them, you know, and buyers and buyers don’t want a job. And so really, that really is a job. And many business owners, instead of creating a business, they’ve created a glorified job and wants to go to work at every day versus a business actually works for them.
So people’s number one product is number two.
So product is your industry, your product. It is your service. You have to ask, is my industry product service on the way up all the way out?
Meaning to. Do you have an Amazon at the prime of your game or do you have a blockbuster and you’re about to go bust? And so product is huge. You know, there’s a lot of industries that were dying before covid that are now crushing and vice versa, those industries before Kova that were killing it and dying.
So I always tell my clients to ask these three transformational questions during product because remember, 70 percent of businesses are going out of business, have to be in business 10 years because they stop innovating. In order to innovate under product, ask yourself these three questions from a one. What business are you in this in the 90s, is that some sense, what business, what we had and I said, what?
Booksellers will fulfill book orders. And then Amazon said, this is a question your own or your listeners, not your owners. Your listeners are asking, what is your core competency? What do we do really, really well, better than everybody else. What is there a USB or unique selling proposition? And Amazon said. We do fulfillment better than everybody else. So then the third obvious question is, what business should we be in? Should an Amazon said we need to be in a government business, not just for selling boats, were selling everything for everybody.
Now, Amazon is not really a huge, innovative company, are they? What have they made? What have they innovated?
It’s it’s there are things, but in effect, they’ve basically they just they took on processes that nobody else wanted to take on, processes that nobody else took took on. They figured out what they were really good at, which was fullfillment. They’re not out there making the widgets. They’re not manufacturing and widgets. They’re not creating, you know, the next the next best cell phone. They’re not out there creating.
They’re out there fulfilling what everybody else creates. Yes or no.
You know, those transformational questions is really what transformed Amazon from a small bookseller to a multibillion dollar worldwide conglomerate that they are today. You know, my good friend Jeff Hoffman was standing in the airport line to try to to get his boarding pass so he could board his plane. This was decades ago. And he said he waited almost two hours to get to the agent to hand in this little, teeny thin piece of paper so he could get on the plane and just said, I just missed my plane, has handed me a piece of paper and Jeff went out and created the airport kiosk.
The kiosks approach your boarding passes so you don’t have to wait in line and miss your plane. That’s innovation. But as in the case of Amazon, you don’t always have to be the creator. You and now Amazon is the creative fulfillment, right, because they do it better than everybody else, but that’s what that’s what the essence is back in the 90s. What do we do so well is that we do that and that’s how they got so big.
So all business owners really should go back and ask themselves three questions. I don’t care what vertical you’re in, e-commerce businesses. You know, ask yourself, what business am I in, what I do really well, better than everybody else on my business, should we be? In some sense?
It does. It does. And then it’s interesting that they’re there. It always sounds simple, but it’s a very difficult, introspective thing for a business owner to do to really evaluate what’s the actual business where we’re in and what’s the thing that we can do. Right. And it really it really is. And a lot of times, Eric, you have to have an outsider’s perspective, because, like I said, when you’re in your fog, it’s foggy.
And a lot of business owners are transactional versus transformational. They’re are working in the business in the day to day, putting out fires constantly that they don’t really have time to sit there and think about what this is. I am what I do really, really well. And did you ever watch your movie, The Founder, based upon the McDonald’s?
Yes. Yeah, yeah. It was Michael. Michael Keaton was the star that we had. Really, really good. Good movie.
You remember when Michael Caine and Ray Kroc was in the bank trying to borrow money? Because he had already taken a mortgage out on his personal house, right?
He wasn’t making any money.
And it makes you like I’m like a legend. More money. He walks out and then a gentleman that followed him out of his name, he said, What business are you in?
And I said, I’m in the restaurant business right now. All right. What business are you? And he finally said, you need to be in the real estate business. You are not in the restaurant business, not in a hamburger business. You have to be in a real estate business. You have to buy the land, build the buildings, listen to the franchisees or franchisees are not compliant. You avoid our franchise agreement and you get another franchisee in there.
And then these franchisees are paying you rent. Those questions right there is what got Ray Kroc to have the leverage over the McDonald brothers to basically take the company away from them. But is the reason why McDonald’s is the largest holding company, real estate holding company in the world? So a lot of times you get a very a very valid point, Eric, is that. It’s hard for a business owner to have the infrastructure to do that themselves. You’ve got to have an outsider’s perspective like Ray Kroc that require would have never figure that out on his own.
And the interesting thing, too, and we look like let’s take the the greater story out of it, but like in general, so the like that business effectively was became what McDonald’s was, not what it was built from because they couldn’t answer those three questions. I don’t think like they they didn’t have the vision to do this bigger thing versus now, Ray, through this also third party help was able to really see what the future of the growing business is, which is and it’s funny, like brothers, the two brothers did not want to let go of the control and will never grow without letting go of the control.
The reason is that they tried to have multiple locations, but they wanted to control everything and then they all fell apart. So they’re like, OK, we’re just going to focus on our one restaurant, but you got to let go of the control. You got to get good people. You got to get good integrators. You go back to the people. You don’t build the business. You know, people may the business right. Got the right people.
I can’t do it all by himself. Right. So the therapy is processes, and I can still use a founder movie based to illustrate processes, you know, because back in the 50s, most business owners get this wrong. Most business owners design the processes around their own agenda, not around the customer experience.
MacDonald brothers back in the 1950s said, We want to build a fast food restaurant. We want our processes to be centered around, be designed with the customer experience in mind. So do you remember when when the McDonald brothers went out to the empty tennis courts? That’s right. Employees to talk through it all on a tennis court. How their employees moving around, bumping into each other. One of the McDonald brothers was on a ladder, really orchestrating how they move and kept redesigning it until they really had a symphony of systems and processes designed with the customer experience in mind.
The customer experience the McDonald’s brothers came up with, as we want our customers to experience great tasting food.
That’s hot, fast, 30 seconds or less. Even of those processes were designed back in the 50s and tweaked along the way, you can eat at a McDonald’s anywhere in the world and really get the same experience. Yeah, right.
Have you ever dealt with a company? We have to talk to three people, four people, 10 people to tell them the exact same story of your problem to try to get some resolve. Banks are notorious for this. Pharmacies, retail, social media companies are notorious for this, that they are not designing the processes with the customer experience in mind. They’re designing customers to alienate US and business. And here’s the bottom line, if you don’t create raving fans, then your competition will.
And you’re not going to create raving fans by having broken processes not designed with the customer experience in mind, so processes must be designed with the customer experience in mind and must be productive, efficient. And they must be well documented policy and procedure menus, McDonald’s can fire somebody on the front line and hire somebody within 30 minutes, have them working because they have S.O.P checklist is easy to follow, understand and implement. So you’ve got to have this policy procedure manuals as a checklist, employee handbooks, non competes, you know, all the documentation.
You never sell the business with all this documentation. Plus you need it to scale. You’ve got to have these processes to scale. So the fafi and this is the highest value driver, Eric, so businesses have it even under a million dollars? Well, typically sell for one the four times multiple. Probably one to three, more like it, just as well over a million dollars in EBITA, which could go for four or five and up. However, the more proprietary assets you have, so the fourth is proprietary, the more proprietary assets you have, synergies you have, the more we can sell your company for a get you a much higher value.
There’s six pillars to proprietary. No one is branding the mobile brand and your company as and what I can sell it for as long as your brand is relevant in the mind of the consumers. Is Blockbuster relevant in the mind of consumers is anybody can pay money for blockbuster brand. Now, because they went bust, raising them, their most valuable brand in the world is, do you know, the biggest brand, the most valuable brand in the world is?
That’s a good question. I mean, it’s funny, I’m looking at a Nike square in the back, there’s an example of someone that jumps to mind. But I mean, they’re not wearing a top 10, but they’re not the most valuable. Yeah. Oh, boy, we’ve mentioned it several times on the show today.
Oh, my, it would be our friends at Amazon.
Apple. Yeah, yeah, yeah, yeah.
I look at a MacBook and an iPhone and they all surrounded by Apple devices. They’re actually such a part of it. I wouldn’t think of going outside, but it’s funny that is that is hugely a brand impact, right?
It is. I mean, the brand alone is worth two hundred fifty five billion dollars billion. That’s just a brand. That’s not the assets. Demitri Cash. Well, real estate receivables, that’s just the brand alone. So build your brand. And then the other thing is trademarks. Trademark your company name. You know, trademark your slogan, your trademarked exit, rich.
Yeah, you know, trademark your podcast.
But here’s the big mistake the business owners make when trademarking. They go and they get a trademark for the state that they’re setting up the business up there in California. They start a business in California and get a California trademark, but then they go to GoDaddy. They make sure they get that dotcom, but they never check the federal database to make sure that that name is available. Right. And I’ve seen clients in business for years and all of a sudden receive assistance, this letter, and they have to stop using that company name.
And, you know, I’ve seen clients hiring attorneys with lots of money and ended up losing. So go spend fifteen hundred to two thousand dollars and protect your proprietary stuff. You know, and even products are not just your name and slogans and what’s unique to you, even products and have clients. His business for selling the 50 to 60 million dollar range. They have 12 different products. Each one has a different federal trademark.
Each one is exclusive to Wal-Mart, exclusive to Target, exclusive to different retail chains. So TJX will pay more money when buyers are five different types of buyers. When buyers look at buying businesses, they look at synergies. What synergies? It’s going to catapult my current business to the next level. They’re buying synergise. Patents are huge, if you’ve ever watched Shark Tank, every single shark always ask. Get a patent on that, do you have a patent pending?
Do you have a utility patent? In fact, offers are contingent upon patterns of business for 18 million dollars. And that business was was not really making money, but they had 18 hands on drugs or another one. That’s really big manufacturing contracts, distribution contracts. There’s another thing about e-commerce business.
It’s online businesses.
They don’t have people. Some of them have processes, it’s iffy. Most of them never, ever have contracts like coffee cup I was selling at a manufacturing company, no contracts as somebody else making their coffee. No contract.
You know, you really need those contracts. So you have protection. And the buyer buying the business knows that this manufacturing relationship can continue on. This distribution company can continue on. Does that make sense?
Drugs are huge. You know, vendor contracts, distribution, manufacturing, any type of exclusive contracts. Franchise owners who have franchise contracts are really valuable. Client contracts are extremely valuable because buyers want to make sure that there’s revenue coming into the business, especially the contracts. And e-commerce businesses are good at this, getting a subscription model for reoccurring revenue. And when you have reoccurring revenue, I will pay a higher multiple for subscription models. Here’s a caveat to contracts.
I have never met a business owner in over 20 years that actually has the transferability language in their contract that says this contract is transferable to the new entity.
And about ninety nine and about ninety ninety nine percent of all sales in the United States are asset sales, not stock sales. And so if your buyer refuses to do a stock sell and your and your clients refuse to do consent to transfer, your job can fall apart. So you need to make sure you have that transferability language. The other thing is database’s Facebook page, 19 billion dollars for WhatsApp and WhatsApp was hemorrhaging.
Yeah, they were not they were not profitable on that.
They are not profitable. And they were hemorrhaging, but they had a billion users. So they had a synergy that Facebook wanted to buy. Facebook knew they can monetize in order. Why that investment?
Celebrity endorsements are big. You know, if you look at rooms to go, who’s a celebrity there, Cindy Crawford. Have you ever seen her in any of the furniture company? No. And then we have a client who’s got products endorsed by Oprah. Well, Oprah is like the queen of everything.
So strategics, who have some more products, will pay more money for that Oprah relationship because, you know, it’s all about relationship capital because they want to get their products in front of Oprah. Same thing with radio personalities like Glenn Beck. Know the cake product show.
Yeah, these these celebrities and radio personalities can only endorse one vertical at a time. Otherwise they lose credibility. Jennifer Aniston’s face is all over Aveeno. You don’t see her face on any other skincare line, right? And then e-commerce businesses back to my e-commerce businesses, when they have the top positions on Wayfair, it’s Etsy, Amazon, eBay, Monan that shoots up in price because as prime real estate, the strategics want to get their products and those placements.
That makes sense.
Yeah, the new real estate is placement on page and in research results now instead of just physical location in the town.
Absolutely. Probably even more valuable than physical location in the town. That’s where that’s where consumers are shifting to, because most consumers, you know, because of Amazon, whoever makes it easier for the consumer to do business is it companies is going to want Amazon wins because they make it so easy. But the pandemic has also changed the way consumers purchase products and services now. Wal-Mart and Target did not have a membership in a program where you can order online and to deliver groceries to your doorstep is because Amazon acquired Whole Foods and Whole Foods has that program.
You know, the interesting thing, too, and like you talked about the you know this, every business is now a global business in effect. And what we try to be like those these brands are are no longer like the reach is not limited, but nor is the they have to effectively go beyond their streetcorner. You know, it’s it’s almost a responsibility as a business to be able to go, yeah, there is no limit anymore where you can do business.
The limit is right here in your mind.
FFP, I’m sorry, go ahead.
Yeah, no, sorry, I just realized I, I wanted to double check because I know we talked about so we’re five peas in.
And first of all, like I say, Michel, this is incredible.
Like, this is if anybody hasn’t already started writing this down, number one, they’re going to buy the book. And if they don’t, I’ll buy the bloody book for them. They need to write a fantastic book.
But like you are, you are sharing a ton of really, really strong lessons here. And I want to thank you as we’re going through this, because it’s it’s it’s a rare treat to have somebody that can really be, as you know, informed and share as much, even though, you know, obviously there’s a lot more that’s in the book than just simply listing out what we’re talking about here.
Right. Thank you, Eric. And so the fifth is patrons, patrons is your customer base. And most businesses follow the 80 20 rule where 80 percent of their business comes from 20 percent of their clients.
And you’ve got to be very careful on customer concentration. What you really want is customer diversification and e-commerce businesses get in trouble doing this as well on. Coffee company Dow is talking about ninety nine point nine percent of all the sales came from Amazon. What happens if the relationship with Amazon fails? Then they just lost their entire business, so it’s not just, you know, customers that you have customer concentration and it’s also the marketing channel that you’re using. And if all of your sales are through Amazon now, I know there’s a lot of Amazon sellers out there that only sell on Amazon.
And that’s OK, but it’s risky when I looks at that they’re going to want to mitigate the risk because what happens if Amazon decides? Not to do business with you, right, or Amazon decides to get in the business you’re in and effectively evacuate that channel for you now. Right, exactly.
So you should always be diversified in your client base and how you get clients. So if you’re getting all your clients from Amazon, I’d be very careful. You need to have multiple concurrent resources like your own website, you know, like maybe Etsy or something else. You have to have sufficient resources course being in the grocery store, et cetera. So anyway, this is customer concentration we want. So I’ll just give you a quick case study.
We had a business or manufacturing business we were selling that has 70 percent, 60, 47 percent of the revenue tied up in the BP contract. We appraise this company for nine point eight million.
We had over five hundred and fifty buyers.
We narrowed it down to 12, Alawi’s a lot of intense. Every single letter of intent had a condition in there that if you lose BP, then we’re not paying you. This isn’t this and that’s because we’re going to mitigate the risk.
However, we found a strategic that very similar products and services in a strategic. Didn’t care about the risk because the reward for them was far. Greater on the upside, because they’ve been trying to get their products and services into BP for decades and never could get their feet in Utah, it’s like, oh, this is perfect. We’re in there with this company we just acquired. Now we can get our other products and services in there.
Does that make sense?
Yeah, they were willing to pay 15 million for a company that was a price for nine point eight. Fifty million for 70 percent of the business, which is one hundred and twenty six percent more than that price price for the company for 70 percent. So we can sell a business with customer concentration. It just makes it much more difficult. We have to find a buyer of a needle in a haystack type of situation.
Yeah, that was a real unexpected value, but it’s an important one. It’s it’s hard to match those. But and also as well, like you talked about before, like the the outside view in is the only way in which they will discover that, because if they are simply looking at their own internal channel, that’s all they can be focused on. How do they possibly seek out a buyer who’s looking for a bidirectional access to the channel and sees a greater value than they even realize they’ve got?
So that’s and sometimes it doesn’t always work out. I think we had we had a media marketing company that were selling 10, 15 million range. They have five clients are only five, and they’re in the process. They lost two of the five. And the reason they have five is because of were casinos that cater to casinos and in marketing for the casinos.
It was so such a risky business because casinos will do the math. They bring on a new, you know, a new agent that makes the decisions and they will do the math and say, oh, we can do this in-house cheaper. And the marketing company. So they lost two clients out of the five. The revenues dropped in half or even have dropped in and they were no longer sellable. I ended up having to merge with another media and advertising marketing company.
So it doesn’t always work. How do you want to make sure you have customer diversification? And then the last piece, the most important thing, all entrepreneurs is profits. And I was like, Michelle, where do you put this last? The reason for profits last is because of that lack of profits is never the problem. Lack of profits is never the problem if you’re not making money. Lack of profits is not the problem.
It’s a symptom.
And the operating on one of the other types of clients that come the mail is that much of a profit problem. I’m like, no, you have a people problem or no, you have a process problem. You don’t have lack of profits is not a problem. It’s a symptom.
If you are running your business on all five PS, I can promise you you’re going to make money.
What’s that was a great example of never far from profit, they were as far from profit as you can get while still be considered in a business worth buying. But they had of the other five fees and majority of what was needed to bring value to their buyer. Right. That’s incredible.
That’s the sixth phrase. That’s your infrastructure. And you can see there’s infrastructure on the six fees. I can work for e-commerce businesses, right? Yeah.
Yeah. When it’s and it’s amazing. Like you said, it’s these practices apply to brick and mortar. They apply to e-commerce. They apply to locals to global site there.
It’s that’s right.
The methods play out and the importance is you have to just look at the overall methodology and make sure it all comes together. So like with that, I know, Michelle, we we’re coming up to time. And this has been fantastic. So Exit Rich is I highly recommend people people need to get this. If you’re at all involved in business, even if you’re not thinking today that you’re building towards exit, we have to understand we all are right.
The viability and sustainability is maybe your exit, maybe it’s your own personal exit. Are you creating something that’s sustainable to be worthwhile to the next person that’s going to take it over? Even if it’s not necessarily a sale, it could be the next CEO.
So we’ll have links to get get the book and Eric and I tell everybody the value that they get paid by the state.
Absolutely. That would be fantastic. Yeah.
And I’m sure your listeners want to hear about the extra gold nuggets, extra value we’re offering.
I like this even better.
So it’s so Rich launches in June towards the end of June. And Steve Forbes has endorsed the red state as a gold mine for entrepreneurs, as most entrepreneurs live way too much money on the table when they’re selling their business. Kevin Harington original Shark on Shark Tank wrote the foreword lectures my coauthor. So you don’t have to wait till June to read exit rate. You can go to exit. Which book?
Dotcom now for twenty four dollars and seventy nine cents, which is less than Amazon.
We will email you to digital download so you can start reading today. We will send the hardcover to your doorstep to anybody in the United States for no additional shipping cost.
We will give you a lifetime membership into the book club where there’s video content and made doing transformational questions and talking about strategies and techniques and doing deep dives in all these different things that I teach over the last 20 years, plus documents, documents to run a business necessary business. We have simple employee handbooks, not Kupets or charge licensing procedure manuals. We also have sample letter of intent. Purchase agreements, due diligence, checklist, closing documents, all of these are there not just for review, but you can download the templates and start using them.
If you want your attorney to try to recreate all these documents would cost you over thirty thousand dollars and all available to you just for buying the book at twenty four dollars and 79 cents.
Plus, we’ll give you a 30 day membership into Club CLS, which is an entrepreneur mastermind that we started to really help business owners build that sustainable, scalable and when already sellable business so they too can get rich. And that’s an rich book.
Dotcom, if there’s if you if you got twenty four, seventy nine to spend, which everybody does, then go, go there.
Yeah. Because if you’re going to McDonald’s save you save the burgers by the book.
Save the Quarter Pounder with cheese.
I can probably say I was lucky enough and thank you to your team actually sent a preview and I read it. It’s fantastically written, beautiful lessons. Like you said, you and Sharon did a great job and coauthoring this and like the book alone, well worth the value that that’s attached on that cover price. But the fact that you go far beyond it with what you’re giving and sharing, I really appreciate it. So, yeah, definitely folks do do go there and get the rich book.
This is this is a must have. And like I said, it’s it’s a manual that everybody doesn’t even realize they need until they start to read it. And don’t don’t wait until you’re looking to sell before you start to try and look backwards at what you needed to do along the way. It’s it’s like a manual for success.
So thank you for for bringing this to market.
Thank you. Thank you for having me. Eric has been an absolute pleasure. My main website, if anybody wants to contact me, Michell at SeilerTucker.com and then https://ExitRichBook.com.
Excellent. Yeah, I’ll make sure I got links to the show, notes. Michelle Seiler-Tucker, this has been an absolute pleasure and thank you so much. I appreciate it. And I wish you all the best. With the official launch in June. I’m looking forward to my hard copy cover arriving at my doorstep so I can put it on the bookshelf, but I’ll read it from end to end in the meantime anyways in advance, because it’s it’s an absolute must read for sure.