How To Exit Your Business

About this video

Dan Martell shares his ‘perfect exit’ framework, which he says he used for his own two companies Flowtown and Clarity and with coaching clients, including a client he claims exited for over $90 million on about $900,000 in MRR. Five strategies: 1) Know your numbers - new customers added monthly, retention/churn, and ARPU growth, and watch for the growth ceiling/churn flatline. 2) Visualize maturity - picture what the product suite looks like in 10 years, because a single-feature hook will be copied in 2-3 years, especially in MarTech. 3) Become the person - grow mindsets and leadership to run a $10M, $50M or $100M ARR business, not just learn tactics. 4) Invest ahead - use return on equity (he claims the best businesses get 200-300%) and reinvest in team, acquisition, retention and expansion rather than only taking profit; one client, he says, left $100 million on the table by not building a function an acquirer would have added. 5) Drive value - learn acquirers’ value drivers vs detractors by talking to acquirers or M&A bankers.

Key takeaways

• Know three numbers: customers added, retention, and ARPU growth
• Visualize the mature product suite or competitors will copy your hook
• Ask who you must become to lead the next-stage company
• Invest ahead: reinvest profits where unit economics give high return on equity
• Identify acquirers’ value drivers and detractors early via bankers/acquirers

Episode details: published November 11, 2019 · 11:35 long. Summary written by Self Growth Videos from the episode itself. Business results and any income figures mentioned are Dan Martell’s own claims, shared for education — they are not typical or guaranteed.

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