Watch a climbing stage of the Tour de France bike race and you’ll see the world’s best cyclists performing a cat-and-mouse game as they ascend a mountain pass on an 8-10% grade. One climber will pull away from the relative safety of the pack, exposing them to the wind, only to be caught by the peloton a few seconds later.
Turning a service business into a product or software company can be tempting. While a typical consulting company may trade at a modest multiple of EBITDA, a fast-growing software company with sticky subscribers could sell at a double-digit multiple of revenue.
The difference is hard to ignore.
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.
Watch a climbing stage of the Tour de France bike race and you’ll see the world’s best cyclists performing a cat-and-mouse game as they ascend a mountain pass on an 8-10% grade. One climber will pull away from the relative safety of the pack, exposing them to the wind, only to be caught by the peloton a few seconds later.
Turning a service business into a product or software company can be tempting. While a typical consulting company may trade at a modest multiple of EBITDA, a fast-growing software company with sticky subscribers could sell at a double-digit multiple of revenue.
The difference is hard to ignore.
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.
