If I Were Starting a Company In 2024, This is What I'd Do [FULL 0-$200M GUIDE] | Chris Lee
Oct 27, 2023
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Chris Lee, Entrepreneur and host of The Founder podcast, shares his entrepreneurial journey, including the exit from a nine-figure solar company he sold in May 2022. He discusses the significance of marketing, sales, and culture in businesses. Other topics include door-to-door sales, investing in personal brand, opportunity and timing, prioritizing marketing, establishing headquarters in Washington, challenges in the solar business, finding purpose after financial success, focus on marketing, sales, and culture, key performance indicators for business success, building relationships, and the cost and potential of solar energy.
Compete on value and experience rather than price to justify higher prices and provide a high-level customer experience.
Focus on core values, creating a strong culture, and building enterprise value to succeed in business.
Transition into private equity to help home service and product businesses scale and build enterprise value.
Acquire businesses through minority and majority stakes, aiming to scale them to nine figures before exiting.
Deep dives
Building on Value and Experience
In this podcast episode, the importance of competing on value and experience rather than price is emphasized. The speaker shares their experience of growing a solar company and understanding the significance of providing a high-level customer experience to justify higher prices. They highlight the need for businesses to focus on core values, creating a strong culture, and building enterprise value in order to succeed. The speaker also discusses the challenges faced in the solar industry due to interest rate fluctuations and provides insights on the current state of the market.
Lessons from Selling a Business
The podcast host interviews a guest who recently sold a nine-figure solar company. The guest shares their experience of the selling process, highlighting the grueling due diligence and negotiations involved. They also discuss the emotional impact of stepping down from the company and dealing with a period of depression. However, the guest emphasizes that retirement is not for them and expresses their passion for creating, sharing knowledge, and helping other entrepreneurs scale their businesses.
The Importance of Building Enterprise Value
The speaker explains that many businesses fail to build enterprise value due to their focus on short-term profits and lack of marketing, sales, and cultural effectiveness. They stress the need for businesses to have a long-term mindset and prioritize creating value for customers while also maintaining a strong company culture. The speaker emphasizes the significance of being able to differentiate and justify higher prices in a commoditized market, as well as the importance of having a clear buy box and being selective when it comes to potential acquisitions.
Transitioning to Private Equity and Future Plans
The guest discusses their transition into the world of private equity, where they now focus on helping home service and product businesses scale and build enterprise value. They share insights on the due diligence process, the importance of focusing on the core business, and the challenges of saying no to opportunities that don't align with their buy box. The guest also expresses their excitement for launching a podcast and connecting with other entrepreneurs.
Building Relationships and Recruiting are Key in Private Equity
The main point of this podcast episode is that the value-add in private equity lies in the ability to bring relationships to the table that benefit the business and to recruit skilled individuals. The speaker emphasizes that building a strong recruiting engine translates to success for the acquired businesses. This is achieved by centralizing the hub of marketing sales and contracting it out to the acquired businesses. The speaker also highlights that digital marketing and having a structured sales process are important factors in scaling businesses. The danger of micromanagement and the lack of good key performance indicators (KPIs) in small businesses are discussed.
Expanding Through Minority and Majority Acquisitions
The speaker explains that their company acquires businesses through two methods: minority acquisitions and majority acquisitions. A minority stake is taken in higher-value businesses that are already operating well and only need some adjustments. On the other hand, a majority stake (75-100% ownership) is preferred for businesses where there is potential to scale and grow. The speaker emphasizes that the goal is to acquire businesses that can be scaled to nine figures before exiting. The speaker also discusses the financial considerations and the willingness to invest significant amounts in customer acquisition.
The Challenges and Opportunities in Scaling and Investing in Businesses
During the conversation, the speaker touches on various challenges and opportunities in scaling and investing in businesses. Some of the challenges include micromanagement by founders, lack of good KPIs in small businesses, and the need to adjust the sales process. Opportunities mentioned include the potential of utilizing underused marketing techniques such as mailers, video mailers, and influencer marketing on platforms like TikTok. The speaker also expresses their passion for investing in real estate and active investments, while highlighting the importance of personal fulfillment and creating value for others as part of their definition of success.
Chris Lee, the host of The Founder podcast, shares his entrepreneurial journey, including the exit from a nine-figure solar company he sold in May 2022. Create your business to grow your revenue, scale your organization, and make an impact with help from Wealthy Business! Apply here https://wealthyway.co/50d --- Are you living The Wealthy Way? Take the quiz and get FREE access to the “Wealth Builder Academy” where I go over all the fundamentals of building wealth. https://www.wealthyway.com/
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Would you like my team to help build your personal brand? Apply to join Pineda Media at https://wealthyway.co/rj9
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Want to partner with me to supercharge your business? Apply at https://www.pinedapartners.com/
You can invest in my real estate deals! Go to https://pinedacapital.com --- Connect with Chris! Instagram - https://www.instagram.com/chrisleeqb/ Podcast - https://podcasts.apple.com/ie/podcast/the-founder-podcast/id1687030281
His first business venture faced difficulties, including partnership issues and the economic downturn in 2008.
Chris explored various business opportunities after these setbacks, learning from larger companies' owners. The realization of internet marketing's potential for scaling his business prompted his entry into this field.
According to Chris, timing is crucial for seizing opportunities, and many miss them because they aren't actively seeking or aren't prepared when the right moment arrives.
Core values, represented by SOLGEN (Synergy, Outside-the-box, Love of family, Generosity, Excellence, No excuses), play an essential role in Chris's company. These values guide hiring and firing decisions and drive business growth.
Chris addresses the imposter syndrome prevalent among entrepreneurs and emphasizes the scalability of online businesses.
In the solar industry, which typically yields margins of 6-8%, Chris focused on providing a superior customer experience. He highlights the importance of being prepared for a potential sale to ensure that expenditures and organizational aspects are in order.
After selling his business, Chris realized the importance of balancing work and family time wh
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About Ryan Pineda:
Ryan Pineda has been in the real estate industry since 2010 and has invested in over $100,000,000 of real estate. He has completed over 700 flips and wholesales, and he owns over 650 rental units. As an entrepreneur, he has founded seven different businesses that have generated 7-8 figures of revenue.
Ryan has amassed over 2 million followers on social media a...
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