STEP 1: MARKET RESEARCH = GAME PLAN

• Read everything you can on your marketplace

• Identify your market (B2B or B2C)

• Identifying your decision-maker

• List of questions (6-4-2)

• Do not outsource

• Adjust based upon each round of research

• Does the market support your idea or approach?

STEP 2: FINANCIAL REQUIREMENTS

• Learn how to read Financial Statements

  • Income Statement

  • Balance Sheet

  • Cash Flow

• Put together Financial Statements for the first 5 years

• How are you funding your business?

  • Self-funding

  • Borrow Money (Interest Expense)

  • Investment Capital (AR Lending, VC, Angel)

STEP 3: ORGANIZATIONAL STRUCTURE

• Legal Entity (State Tax Law Driven = Accountant)

  • Limited Partnership

  • Limited Liability Company (LLC)

  • S-Corporation

  • C-Corporation

• Identify Roles & Responsibilities of Your Team

STEP 4: TEAM

• Best at Every Position (Experience/Track Record of Success)

• Effective at Hiring

  • Interviews

  • Assessment Tools

  • Non-Compete Contracts

• Training/Development & Firing

• Gap Analysis

STEP 5: END GAME = $ELLING YOUR BU$INE$$

• Business Brokers or For Sale by Owner

• EBITDA (Earnings Before Interest Taxes Depreciation & Amortization)

• Owner’s Discretionary Cash

• Multiple of EBITDA or ODC (3-5 times)

• Keep it Confidential

• It Closes with a Title Company like a Mortgage