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Jim Beach sold American Computer Experience for $200 million, which sounds like a fantastic exit, but when I asked Beach if he had any regrets I was surprised by how long a list of lessons he had to share.
Jim Beach’s lessons to share:
Think Twice Before Starting That New Division
Growing revenue by starting new divisions can feel like you’re making progress, but, in many cases the growth can come at the expense of your company’s value. At The Value Builder System™ we help entrepreneurs improve their company’s value. We start by scoring your businesses on eight factors that are statistically linked to the value of your company.
One of the eight attributes is called The Monopoly Control, which quantifies how well differentiated your business is from its competitors. Starting new divisions often reduces your performance on The Monopoly Control because each new offering is almost always less differentiated in the market than the original.
In Beach’s cases, while the computer camp division was well differentiated, the contract event management services he offered the Boys and Girls Club was less unique, as there are many companies that offer generic event management services. See how you perform on the Monopoly Control by getting your Value Builder Score here.