5 • 867 Ratings
🗓️ 21 September 2023
⏱️ 13 minutes
🧾️ Download transcript
“The fewer options you have proven out to them, the less likely they're going to want to buy your business." Today, Leila (@LeilaHormozi) shares her experience of selling three businesses and the lessons she learned along the way. She emphasizes the importance of financial performance, growth potential, revenue concentration, cash flow, recurring revenue, unique value proposition, and team strength in creating a sellable enterprise.
Welcome to Build where we talk about the lessons I have learned in scaling big businesses, gaining millions in sales, and helping our portfolio companies do the same. Buckle up, because we’re creating an unshakeable business.
Timestamps:
(2:33) - #1: Revenue and margin's importance
(3:22) - #2: Not selling during business decline
(4:00) - #3: Sell when business is thriving
(5:14) - #4: Diversify revenue for reduced risk
(7:42) - #5: Recurring revenue indicates long-term potential
(9:36) - #6: Differentiation through product, price, or promotion
(10:32) - #7: Create a business that stands on its own
Follow Leila Hormozi’s Socials:
LinkedIn | Instagram | YouTube | Twitter | Acquisition
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0:00.0 | If you're thinking from an investor perspective, they're just thinking, am I going to recoup my |
0:03.9 | investment and how risky is this? And the less options you have, the less options you have proven |
0:09.1 | out to them, the less likely they're going to want to buy your business. |
0:17.2 | How do you create an unshakable business? I cross $100 million in net worth by the age of 28. |
0:22.8 | Now I'm growing Acquisition.com into a billion dollar portfolio. |
0:26.0 | In this podcast, I share the lessons I've learned in scaling big businesses |
0:29.0 | and helping our portfolio companies do the same. |
0:31.7 | Buckle up and let's build. |
0:39.0 | I want to share with you what I wish I had known before. What is up? |
0:45.4 | I want to share with you what I wish I had known before selling a business, which is, it's really interesting because this past year, we actually sold three businesses. |
0:49.3 | We sold a software business, a product's physical profits business, and a service business. |
0:50.8 | And so it's been nuts. |
0:58.2 | And we did all this because we wanted to consolidate down to just our holding company,.com and really focus in there and have practiced what we preach which is focusing. |
1:04.1 | And so that being said, I wrote down seven things that if I had known when we first started the business, I would have focused on more than because I'll tell you this, which is when we |
1:07.6 | started our business, I remember someone saying one day you might want to sell. And I thought to myself, because, you know, I'm in uninformed optimism land of this is |
1:14.1 | fucking awesome. I was like, oh my God, I would never want to sell. I can't believe you |
1:16.8 | didn't even say that. I'm almost like offended. I'm never going to be one of those people. |
1:19.1 | As time goes on, you kind of realize things about yourself're really great builders. I'm not necessarily, I can maintain |
1:27.7 | and I can actually be an excellent maintainer, but I do not enjoy it as much. I think at a certain |
1:31.1 | point with every business that we've had, we're kind of like, okay, it's kind of in maintenance incremental |
1:35.0 | improvement mode, but we really like getting shit fixed. I like fixing broken stuff and I like building |
1:39.2 | new stuff. And for me, it's mostly teams and infrastructure. That being said, I remember the beginning, you know, we were kind of like poo-pooed that. |
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