copyright (c) 2011, edumetrix inc. 1 fund g r o w sell your business context john j. stuppy, mba,...
TRANSCRIPT
Copyright (C) 2011, EDUMETRIX INC. 1
Fund Grow
SELLYour Business Context
John J. Stuppy, MBA, Ph.D.
410-935-0936
2Copyright (C) 2011, EDUMETRIX INC.
Where I’ve Been (TutorVista.com): Fund Grow Dominate Sell
President, TutorVista.com $213M sell Fund Raised $30M+ from Sequoia, others Grow Grew 22% a month over 2 years Dominate #1 online tutoring co in 3 years Sell Sold to Pearson
What I’ve learned? Tools, relationships, strategies, planning,
insight, etc. make a huge difference
3Copyright (C) 2011, EDUMETRIX INC.
What Do YOU Want To Do?
Operate a professional hobby? Fine-tune your business for profit? Raise $: hire, market, develop, ? Grow more than competition? Region, nation, global expansion? Dominate the market? Move Up Then Out (Sell)?
4Copyright (C) 2011, EDUMETRIX INC.
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Securing Funding
Type of funding Organic growth from profit Debt (loan) Equity
Source of funds Funded development Grants Friends & Family Angel investors Venture Capital Private Equity
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FUNDING Lessons Learned(for Startups or Mature Companies)
The CEO, consummate sales person Understand sources of value & model Think ahead of time: not on your feet
Buy low, sell high Acquisition cost vs. lifetime value
“In 5 years…” (come back in 5 years!)
Wrangling the deal vs middleman Compelling pitch ‘deck’
(front-loaded)
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FUNDING Lessons Learned (continued)
Management, mgmt., mgmt. Credible, attention-getting financials Timing, business/market momentum Bidding war (multiple term sheets) Big firms: Good news – bad news Funded development vs. equity Create baseline valuation
8Copyright (C) 2011, EDUMETRIX INC.
EDUMETRIXStrategic Opportunity MapTM
Marketing Sales Product development Strategic partnerships Funded development Leadership opportunities Consultative selling Recommendation/Priorities
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Monitoring Growth Progress
Key Performance Indicators (KPI)
Dashboards
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• Net profits ( EBITDA)
• Growth of net profits
• Predictability
• Risk
How Much Is Your Business Worth?
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Where Are The Gaps?Business, Financial, Systems, etc.
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Are You Ready To Exit?
Exit Readiness analysis
Address in the short or long term depending on your game plan
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Planning and Modeling
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How Much Could It Be Worth?Valuation Enhancement Modeling
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Make The World Better . . .Do Well By Doing Good – And Enjoy !
CONTACT
John [email protected]