About this episode
In 2017, Gamal Codner established Fresh Heritage, an e-commerce company that created grooming products specifically for men of color.
Codner grew Fresh Heritage quickly with Facebook ads and online reviews, but relying solely on paid customer acquisition almost bankrupted the company. Codner introduced a subscription program and turned one-time customers into automatic repeat purchasers, dramatically increasing the lifetime value of a customer.
As a result, Fresh Heritage’s revenue skyrocketed to over $4 million. In 2022, BRANDED, a leading global operator of digital-first consumer brands, acquired Fresh Heritage from Codner. In this episode, you’ll learn how to:
- Dramatically increase the lifetime value of a customer.
- Leverage online reviews to drive value.
- Systemize your business to ensure it can run without you.
- Build a thriving e-commerce business.
- Find the natural strategic acquirers for your company.
Check out the written by John Warrillow on The Recurring Revenue Bump.
Curious about what your company might be worth? Start with a Built to Sell Valuation.
Show Notes & Links
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Letter of Intent (LOI): A letter of intent (LOI) is a document declaring the preliminary commitment of one party to do business with another. The letter outlines the chief terms of a prospective deal. Commonly used in major business transactions, LOIs are similar in content to term sheets. One major difference between the two, though, is that LOIs are presented in letter formats, while term sheets are listicle in nature.
Earn-out: Earnout or earn-out refers to a pricing structure in mergers and acquisitions where the sellers must “earn” part of the purchase price based on the performance of the business following the acquisition.
Due-Diligence: Due diligence is an investigation, audit, or review performed to confirm facts or details of a matter under consideration. In the financial world, due diligence requires an examination of financial records before entering into a proposed transaction with another party.
Sellers Discretionary Earnings (SDE): Seller’s Discretionary Earnings, or “SDE”, is a financial metric used to determine the true historical benefit to the owner of a business.
Calculating SDE is a way to standardize or “normalize” a company’s earnings so it can be more accurately compared to the earnings of other companies and the industry as a whole.
LTV:CAC Definition: The Customer Lifetime Value to Customer Acquisition Cost (LTV:CAC) ratio measures the relationship between the lifetime value of a customer and the cost of acquiring that customer. The LTV:CAC ratio is calculated by dividing your LTV by CAC.
About Our Guest
Gamal Codner is a digital marketing growth hacker & a startup founder that has started six different cash flow positive companies, including @Fresh Heritage (acquired).
With over 10 years of experience in startups and digital marketing, he currently helps e-commerce founders Improve their Valuations, Scale & EXIT their brands for more money.
He has generated multiple 7-figures in revenue online since walking away from a 6-figure corporate job in 2014.
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