Exit strategy

Those things are really, really important because when you go through due diligence to sell that business, those are big pieces of what the buyer is going to be looking at.

And we don't really think about them at the beginning, but some of the best advice I had when I was starting out as an entrepreneur was, know your exit strategy, you know, start thinking about that.

As soon as you signed your LLC documents or set up your corporation, what could it look like in the future? Why are you building this business? So I think it's valuable that you bring that up here and really get people to think about it as they're creating those initial documents.

Yeah, I mean, that's something that a lot of people, they don't think about the exit very often because they don't have a lot of urgency around it.

And so having those things owned correctly, organized well, able to be transferred, those all do lend a significant amount of value to a home services business.

And we really are trying to break this down and follow a process.

How do we get started? What's our structure? What's our exit strategy? How do we detach as an owner? Another area that I think is really important is what vendor and operational contracts should owners organize before they grow and sell? Because that's a huge asset to the company as well.

It is.

But before that, you talk about one of the final chapters.

You talk about exit strategies.

You say that it's really important when you purchase the property that to already know who you might be able to sell it to and have a timeframe of when you might want to sell it to.

So you might sell it as a business, you might sell it as a property, you might sell it as a business, as a potential business.

I did my MBA.

It taught me of all, everything I did, the most important lesson I learned was something called the exit strategy.

Okay.

Now the exit strategy is basically At what point, when you start a business, start your business with an exit in mind so that you can build your business, build the systems for you to be able to exit that business at a particular time.

Whether you exit at the number of employees, because it's too big, you can't manage 50 employees, hypothetically.

The turnover, it's 100 million.

Or I want to exit because the EBITDA is great.

I can now create wealth for myself and for my family and build another business later.

And she did this through structures, systems, and strategic design.

And she more than tripled the revenue, reduced her work hours to guess how many? 16 work hours a week would you like to hear that yes okay i'm just making sure my audience listening she generated over 17 million dollars in total revenue and she had an exit strategy by the age of 40.

she was out right but this whole experience this whole thing that she did with her business reshaped how she wants women to understand what a business looks like so she's built um business or she's built a training around how to scale for freedom not more work anybody want that salen i love having you here i am so excited i am so

grateful to be here thank you so much katrina this is amazing

Like, that's a piece of the puzzle, but that's nowhere going to get you where you need to go and building a business.

So I love that you shared that with us.

So why women in business? So you left that you sold that business and exit strategy.

Let's talk a little bit about that.

And so you're gambling.

And so my objective is to create a solid exit strategy for our owners and the ones that joined five, six years ago for the first ones in 15 years, they're going to want out.

And so we have to establish the systems that when other people come in, that here's the enterprise value, here's the recurring revenue, here's the established cash flows, here's what they have been selling over the past year, this is the multiple, and be able to make sure that they can sell.

Whether it be selling to their competitor, selling to private equity, if they have a chain of 10 or 15 of these, they become absolutely targets for private equity to move into.

Jersey Mike's, all of their franchisees are super thrilled about the IPO, because all of a sudden, all this money is coming in, and everyone wants to buy their locations.

Because there's a huge amount of awareness.

And so I am thrilled for the day, not only when we go public, but so that way over the few years after that, that's the exit strategy for our current owners.

The people joining now to answer your original question, the ones that are joining now and building with us on the systems and ironing things out, they'll be the ones that when the bell rings, they're getting offers for very, very good multiples.