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Hi, Im Dave Lavinsky, and below you will discover the 3 most dangerous trends facing entrepreneurs and business owners today. Unfortunately, Im talking about trends that can literally wipe out your business, ruin your life, and make you wish you had never become an entrepreneur in the first place. But, importantly, Im also going to hand you the one secret tactic that the worlds richest entrepreneurs use to achieve extraordinary success. And Ill also give you the 5 keys to successfully executing on this tactic. The first key trend you need to know about is that the number of new business starts is skyrocketing. According to the Kauffman Index of Entrepreneurial Activity, entrepreneurial activity in the United States is at its highest point in 15 years. The Kauffman Foundation reports that 565,000 new businesses are created each month in the United States (thats 6.8 million new businesses each year). The second trend I want you to know about is that foreign competition is increasing dramatically. According to The Future of Business by Lawrence J. Gitman and Carl McDaniel, over the past 2 decades, world trade has climbed from $200 billion/year to more than $11 trillion/year (thats an increase of 55 times!) And while foreign competition here in the U.S. used to be relatively rare, it now occurs in almost every industry So what is the result of these first two trends?
MASSIVE COMPETITION
And why should you care? Because this massive competition is causing the vast majority of new and existing businesses to fail. Consider these miserable statistics:
According to Inc. Magazine and the National Business Incubator Association, 80% of new businesses fail within the first 5 years. According to Dun & Bradstreet, 91% of businesses fail within 10 years According to United States Census, only 3.9% of businesses make it to $1 million in sales, and only 0.6% of businesses make it to $5 million.
And even when their businesses stay afloat, entrepreneurs are suffering big time. Consider these facts taken from numerous research studies and published in Scott Shanes book The Illusions of Entrepreneurship.
Earns less money, compared to if he/she worked for someone else. Has worse benefits, compared to if he/she worked for someone else. Works more hours, compared to if he/she worked for someone else. Has more stress, compared to if he/she worked for someone else.
Yes, this is terrible. And it gets worse Even when entrepreneurs grow revenues to $1 million, $5 million, and $10 million or more, most entrepreneurs still dont realize their personal and financial dreams Why? Because they are working too many hours, incurring too much stress, not spending enough time with loved ones, and not doing most of the fun things they dreamt about when they decided to become an entrepreneur in the first place. And heres the kicker, even those entrepreneurs who grow revenues to $1 million, $5 million, and $10 million, they still dont have enough money to do and buy the things they want. Thats because depending upon where you live, your marginal tax rate can be as high as 50%! So even when you have a great year, you have to give half your profits to Uncle Sam!
Heres how I knowaccording to Smart Money magazine, there are over 930,000 pentamillionaires in the United States. Now a pentamillionaire is someone who has $5 million or more in wealth. In my opinion, this is the amount of money you need today to live the dream life. To have an amazing house, go on dream vacations, and do all the things youve ever dreamed of doing. And heres the key According to Harrison Group Research, 80% of these pentamillionaires are entrepreneurs who sold their businesses.
Let me repeat this: you dont become wealthy running a business. You become wealthy by selling your business.
There are two core reasons for this. The first is that there is a massive tax advantage when you sell your business. Depending on how you sell your business, the capital gains tax rate can be as low as 5% versus up to a 50% marginal income tax rate that I mentioned before (so when you run your business youre paying up to 10 times more tax). The second reason you become wealthy by selling your business is that strategic buyers will typically place a significant premium on your value. You might recall the definition of synergy, which is when the sum of the whole is greater than the sum of the parts. Many times the value of your company plus the acquiring company is many times greater than the value of either company alone. Because of this, acquiring companies might buy your company for a whole lot more than you think its worth. So, let me recap where weve been.
I explained how business competition has dramatically increased. And how this is making it significantly harder to grow a successful business. And even when you have a successful business, due to taxes, not enough money, stress, etc., you still cant live the life of your dreams. And that the only solution is to build your business and SELL IT!
And more businesses started (remember, 6.8 million new businesses are started each year), means more businesses for sale, which means a lot more competition to sell your business.
The result of this has been pretty nasty for entrepreneurs wanting to sell their businesses. According to Buying a Business, in 1978, the average time to it took to sell a business was just 57 days. By 2001, the average time jumped to 225 days. By 2006, it was 237 days. And today, according to BusinessesForSale.com, the average time it takes to sell a business is over 270 days. And according to Inc. Magazine, only 17% of businesses who try to be sold ever actually get sold. That's an 83% failure rate! And, unfortunately these number are only going to get worsebecause the baby boomer generation is approaching retirement age. According to GW Equity and the University of Dallas Graduate School of Management, more than 75% of business owners currently generating between $1 million and $150 million in annual sales anticipates selling within a few years. When asked why they expected to sell, 57% said it was because of their age. They want to retire.
The Solution
Fortunately there is a solution. And companies are selling for millions of dollars EVERY SINGLE DAY The solution is that you must build a company a certain way, and with the goal of selling it clearly in mind!
Even if you have no plans to sell your company now, or even in a couple of years, you MUST start the planning and structuring process now! And, importantly, if you wait until you want or need to sell, its often too late, and/or youll get only a fraction of your desired selling price. Now, Ive put together a great program called Million Dollar ExitsTM that shows you exactly how to do this. And later on this page, Ill tell you how to get it.
Let me give you an example of one of my clients who did just this. Youve probably heard of them. The company is Fathead. Fathead built a highly diversified client based of tens of thousands of consumers. But it didnt stop there. In addition to consumers, Fathead started serving corporate clients and photographer clients. The resultFathead was acquired in a BIG acquisition
So, in building your business, always think about how to get customers to pay you over and over again, because this will dramatically increase the value of your business to acquirers. Let me give you an example of one of my clients who did just this. His name is Craig Rowe, and he is the president of WhyPark. WhyPark monetizes parked sites (parked sites are sites in which someone owns the domain, but they havent yet built the site). WhyPark was making money by offering one and done services like writing articles for and getting links to peoples websites. But he achieved real success when he started offering continuity programs. He started offering $10/month and $25/month services including RSS feed integration, social networking applications and statistics. And once he built up the number of members paying WhyPark every month, the companys revenues and value skyrocketed, and an acquirer came in and paid him a ton of money to buy it.
Let me tell you exactly whats included in the Million Dollar ExitsTM Program.
The 4 ways to exit or cash out of your business The 2 types of buyers and which type you should always choose if youre able The exact time when you should sell your business My 5 step plan to selling your business for millions
The 3 attributes of your company that all buyers will scrutinize How acquirers will come up with their offer price to buy you The 21 ways to maximize the selling price of your business
Importantly, virtually all of these strategies will also boost your immediate revenues and profits, and afford you more time off and less stress from operating your business
The 9 step plan that gets your company ready to be sold for the maximum price How to structure (or restructure) your company to massively decrease the amount of taxes you pay when you sell The exact preparation timeline you must follow The 3 selling materials you need, and how to expertly prepare each of them
Session 4: How to Navigate Through the Sales Process & Emerge a Winner
In this session, youll learn:
The 8 step plan for selling your company for the maximum price The 7 categories of buyers and how to find them The 3 methods of approaching buyers (and the one I strongly recommend which can double your selling price)
The 4 most important factors to negotiate (other than price) How to avoid the 3 tricks acquirers play to lower the sales price (without you knowing about it until its too late) The 9 key transaction issues and how to ensure you get what you really want How to avoid each of the 6 last-minute deal killers
6 comprehensive video training sessions Detailed training session handouts Million Dollar Exits RoadmapTM 8 expert interviews
Now, I want to be very clear that this is a $5,000 program. What I mean by this is that I have purchased training programs for other disciplines that were less comprehensive than Million Dollar ExitsTM and which cost $5,000 or more. And $5,000 is well below the price that the entrepreneurs and companies youve just heard about have paid me and my company to give them only part of the information covered in Million Dollar ExitsTM. But I will not charge you $5,000 for the program. And I wont even charge you $1,000, which is the price that hundreds of entrepreneurs happily paid when I first launched my Million Dollar ExitsTM program in 2011. And they were thrilled to pay that amount. Because they all loved the program and have gone on to build and sell tremendously successful ventures. And heres what one of them said: I was totally blown away by how much of his secret sauce Dave gave away in Million Dollar Exits. The level of detail and specific instructions on what to do that Dave shares in this program - along with the highly detailed slides and worksheets - make this a no-brainer in my book. I would highly recommend Million Dollar ExitsTM to any business owner who wants to get a good grasp on what to do NOW to build a business that they can sell for millions in the future. Bruce Johnson, President Accelerated Growth Consulting So, what is the cost to you? Well, I think this information is so absolutely critical to your success, that I priced it at a level that every entrepreneur can afford. Thats why the price to you for Million Dollar ExitsTM is only 3 payments of $97 each. Yes, you get the six comprehensive video training sessions, the detailed training session handouts, the Million Dollar Exits RoadmapTM and the eight expert interviews, all for just 3 payments of $97 each.
Q&A
Since Ive sold Million Dollar ExitsTM before (at over triple todays price), I know some of you have questions as to whether the program is right for you. Answers to the four most common questions are below. If you have any additional questions, please email us at davel@growthink.com and ask them. Q. Is Million Dollar ExitsTM for Startups or Existing businesses? A. The program is for both startups and existing businesses. The sooner you start building your business to eventually be sold for millions of dollars, the better. So its never too early. Q. Will Million Dollar ExitsTM work for MY business? A. Yes, Million Dollar ExitsTM can help any business grow in the RIGHT WAY so it can ultimately be sold for millions of dollars. In fact, here is just a small sample of my clients who have achieved just that:
Q. Is Million Dollar ExitsTM for companies who are ready to sell now? A. If youre ready to sell your business now, Million Dollar ExitsTM will teach you a ton. Youll learn how to find buyers, how to negotiate the highest price, and so on. But to get the full value of the program, you want to get it well before you want to sell. That way, you can follow the Million Dollar Exits RoadmapTM and build the perfect company thats worth many times more than it would have been had you not gone through the program. Q. Will I receive any Million Dollar ExitsTM materials in the mail? A. To keep the price of Million Dollar ExitsTM low enough so every entrepreneur and business owner could afford it, I am not printing or shipping any DVDs or other materials. Rather, once you sign up below, you will receive an email with your special link to your online members area. In the members area, you can watch the video training sessions, and download the training notes, Million Dollar Exits RoadmapTM and each of the eight expert interviews. So, dont wait any longer. Sign up for Million Dollar ExitsTM now and start building your sellable business today!