You can also browse the topics below to find what you are looking for.
Adii Pienaar developed Conversio, an email marketing platform for retailers. Timed perfectly, the company began around the same time eCommerce started to explode. He saw early success and was experiencing organic growth.
When assessing his business through the lens of Hub and Spoke, Cesar understood that his company was too reliant on him, This led him to create an open-book management style. This style of management involves creating transparency for your employees and outlining how their specific role and output influences the company’s finances.
When John Warrillow sat down with Mike Malatesta, the founder of Advanced Waste Services (AWS), one key lesson stood out: the difference between recurring and reoccurring revenues.
As businesses grow, their accounting needs change. You might have started with something as simple as a spreadsheet. Then you upgraded and spent the money on a QuickBooks account. Finally, you hired an accountant as your needs became more complex.
Picture this: you run a successful small business. You have loyal customers, steady cash flow, and a great management team. Day to day operations run smoothly even if you’re not in the office. In fact, you’re starting to think it’s time for the business to run without you entirely. Maybe it’s time to sell.
There are 29.5 million businesses in the United States, but more than 80% are considered non-employers[i] and most will never hire an employee. They’re owned and operated by a single person who will always be an army of one either because of their personal preferences or the type of business they run.
If you’ve ever taken a business class or pitched a business idea, you’ve probably had to talk about business plans. Projections, customer profiles, key performance indicators, you’ve heard the jargon and struggled your way through envisioning what your business—or maybe just your business idea—will look like in one, two, five years, or even beyond.
One of the biggest factors in determining the value of your company is the extent to which an acquirer can see where your sales will come from in the future. If you’re in a business that must start from scratch each month, the value of your company will be lower than if you can pinpoint the source of your future revenue.
Hub & Spoke measures the extent to which your business can thrive without you. To be valuable to an acquirer, your business must be able to succeed and grow without you at the hub of all activities, as your employees are mere spokes that cannot operate independently of you.
The Swiss are obsessed with independence, and when it comes to running your company, you should be too. When your company becomes too reliant on something or someone you don’t control, acquirers will consider that to be a risk factor, and discount the value of your business.