Intentional Growth

On today’s show, I’m talking with Joseph Fung about what we can learn from a serial entrepreneur. Entrepreneurs often struggle with the idea of following their passion but also realizing that their businesses are an asset and are something they eventually will want to liquidate and tap into at some point. How do you make the change and social impact you want in addition to building your business as an asset? Can you balance these two aspects of running a successful business? Joseph knew from the age of 18 that he wanted to leave an entrepreneurial legacy. True to his goal, he has since started and sold five companies, with his biggest success going to NetSuite for $32M. He talks about his philosophies and how he balances sustainability and his version of conscious capitalism while also building businesses that are financially successful for him and for the future of the business beyond him. Joseph’s stoic and passionate perspective seeps into his approach to business and his advice to entrepreneurs. He’s an excellent example of how not having your identity tied to your business opens flexible and lucrative doors to success. If you’ve ever thought about what it would take to be a successful serial entrepreneur, this episode’s for you! What You Will Learn In Today's Podcast Interview  What helped Joseph—from early childhood—know that he wanted to be a serial entrepreneur Why defining what success means to you lets you make decisions more easily and keeps you on track for achieving goals How the type of business, funding sources and future buyer all influence valuations The breakdown of the five companies Joseph grew and sold, from how he raised the money to the end result of the sales How unrealistic it is to expect outsized outcomes for every deal or every person on your team How to plan for your family so you’re not overwhelmed while building your business Why your first key hires should be a pair and how to track their outcomes The role emotions play in M&A and how that impacts your future strategies When you should start giving back to your team, business and community as an entrepreneur Where your employees fit into the process of selling a business (plus when and how to communicate it to them) How to identify when you can accept something versus when you’re willing to get fired for it, and what to do about it Why Joseph moved from B2B to B2C and what the differences are between the two Predictions for the impact of software on the sales industry as more companies make sales over platforms like Zoom, regardless of geographic location How to think and plan for an “escape hatch” when starting the sale or exit process The value of transitional training on your bottom line and employee retention What role privilege plays in entrepreneurship and eliminating (or creating) barriers to entry How to ensure success through showing your team you trust them to operate independently, while having their backs if something were to go awry 5 PRINCIPLES & 5 VIDEOS TO HELP CLARIFY YOUR VISION     IF YOUR VISION ISN’T CLEAR, YOU’RE GOING TO STAY TRAPPED Quit feeling trapped Start making progress Get clear on where you’re going Be confident in your path forward Stop wasting time and money         About the Guest: Joseph Fung works with businesses and helps them hire sales professionals. He has had five successful exits under his belt and is currently teaching people how to integrate into the tech industry. He has a passion for entrepreneurship, growing businesses, and tech.   Quotes: 06:15  - “A lot of people focus on a change in their career. Going from Job A to Job B. But what we really want to focus on is long term career success.” - Joseph Fung 13:40  - “Would you like to be remembered for being good--really good--at building websites or building graphics? Or being really good at building a business?” - Joseph Fung 21:56  - “Most sales, including a business sale, are inherently emotional and often irrational.” – Joseph Fung 22:35  - “When I think about the businesses I’m building, I try to think about, ‘How do I create something that is really going to garner excitement, is going to have more impact in a transaction and have a really big reason?" – Joseph Fung 35:40  - “We learned a lot but the sad part was that we were so mentally disengaged from the business by then.” – Joseph Fung   Links and Resources: Uvaro Joseph Fung, Twitter Joseph Fung, Instagram Intentional Growth™ Training and Digital Course Reach out to me if you have questions about the Intentional Growth™ Training   You can also reach out to me via email at rtansom@arkona.io, or on my LinkedIn.

On today’s show, I’ll be talking with Billy Amberg about accessing a unique type of capital: non-control growth capital. If you’re looking to fund your growth but don’t want to sell a controlling stake in your company, or you’re not a fit for a traditional bank, or you just want to tap into your largest financial asset, then this episode is for you. Billy is going to be talking about the entire sector of non-controlled growth capital, why it's needed, where it comes from, the terms and conditions that come with it, and the circumstances when it is most applicable. Tune in for a detailed rundown of how to make this type of funding work for you, without opening up your business to a whole bunch of risk.   What You Will Learn In Today's Podcast Interview   What’s going on in the current M&A marketplace The definition of non-control capital: the various types, how to structure it and where it comes from Billy’s definition of an institutional investor How traditional private equity compares to non-control capital funding The different roles of debt and equity when looking to raise capital The different reasons entrepreneurs are looking for growth capital (e.g., acquisitions or distributions) How to view your business through an investment banker’s eyes What factors make owners resistant to different types of investors and buyers Why Billy says the lines between venture capital and private equity are blurring Why middle market private equity firms already have another buyer lined up for your business, before you even sign on the dotted line What it's like having an investor sit at the table and what you should expect Are You Growing The Value of Your Business Take The 2-Minute Assessment To Get Your Intentional Growth Score™ And 1-Page Vision Board. Are your company's current initiatives intentionally designed to increase the value of the business? Do you know what you want from your business long term and why? Do you know what your company is worth? Do you know the differences between Management, Family Transitions, PE Firms, ESOPs and Strategic Buyers? Does the business have a written strategic plan on how to achieve the desired normalized EBITDA and valuation?   About the Guest: Billy Amberg is a managing director of Corporate Finance Associates (CFA), an international investment banking firm specializing in the middle market, as well as owner of Bloomwood Capital, which provides highly differentiated land conservation investment services. He has embraced the entrepreneurial spirit throughout his career, making an impact at elite wall-street firms as a principal in venture capital and private equity, and starting and running several successful businesses. Billy has also successfully performed in the three key roles for any transaction: owner, investor and banker.   Quotes: 04:46  - “If you really want to get good at this, you really need to start building relationships because that’s harder to teach, the older you get.” – Billy Amberg 09:26  - “The real standout, which I think is going to continue, is going to be technology because every business is a technology business now. Or, at least, that’s what the capital providers like to see.” – Billy Amberg 09:48  - “In the non-tech space, what I have told a lot of our clients--‘cause we get a lot of clients after they’ve already gotten letters of intent or offers--is ‘Oh okay this is a really good offer.’ Well, okay, Joe Businessowner. But think about why it’s good for them to offer you that much. And don’t take that offer until you understand that.” – Billy Amberg 16:49  - “It’s hard to guarantee that the legacy of your company stays intact with a large private equity fund because at the end of the day they have control.” – Billy Amberg 22:38  - “People don’t understand that growth is expensive. So it’s interesting to hear how this available tool can free up some cash without selling your soul.” – Ryan Tansom 25:21  - “So for a while businesses have been divided into sexy, and that’s what venture capitalists were, and not so sexy (which is… makes boxes, nuts and bolts, tires, waste management..” – Billy Amberg   Links and Resources: Billy Amberg, email: bamberg@cfaw.com Corporate Finance Associates Mastering Your Cash Flow Digital Course ARKONA Boot Camp Reach out to me if you have questions about the boot camp!   You can also reach out to me via email at rtansom@arkona.io, or on my LinkedIn.

The IT infrastructure of a business isn't usually what gets entrepreneurs jazzed up, however it can have an outsized impact on the risk of a company as well as a company's ability to scale. This episode is a crash course in how to manage, grow and update your IT infrastructure so it's a valuation enhancer, instead of a detractor. If you're not willing to invest in your IT infrastructure, you're asking your potential buyer to do so. How do you think that's going to affect your deal? It is incredibly important to understand the role IT infrastructure plays in mergers and acquisitions — whether you're on the sell side or the buy side. Our guest today not only sold the IT company he started after 27 years, he also handled the six-company integration afterwards. Jake knows a thing or two about IT infrastructure and integration. Listen in as he takes us through the reasons why you should be doing technology-fueled mergers and acquisitions.   What You Will Learn In Today's Podcast Interview   The value of technology-fueled mergers and acquisitions How IT is viewed by the buyer and seller during due diligence Why cutting corners on your IT infrastructure could detract from the value of your business and increase risk Ways to think about your IT if you're looking to sell in the near future The impact acquiring a company has on your IT's infrastructure and how to plan for the extra capacity How a company's IT fits into post-transaction integration Why saying ‘no’ to upgrade requests from your IT person can hurt the value of your company The value of technology-fueled mergers and acquisitions What a security fortress is and why you need one How to determine if your IT vendors are truly partners contributing to your long-term goals or simply selling you products and services to make bank The benefit of having an infrastructure and application technology road map How much IT integration costs, including the impact it has on your team When to replace your IT person and how to evaluate their impact Why your current IT infrastructure is holding you back and what you can do to fix that How to avoid security threats in the modern technology market and mitigate IT costs It’s not just data you’re protecting, it’s your entire livelihood Are You Growing The Value of Your Business Take The 2-Minute Assessment To Get Your Intentional Growth Score™ And 1-Page Vision Board. Are your company's current initiatives intentionally designed to increase the value of the business? Do you know what you want from your business long term and why? Do you know what your company is worth? Do you know the differences between Management, Family Transitions, PE Firms, ESOPs and Strategic Buyers? Does the business have a written strategic plan on how to achieve the desired normalized EBITDA and valuation?   About the Guest: Jake Kent is a Navy veteran, entrepreneur, and founder and CEO of two fast-growing information technology companies, JCMR Technologies and Chief Acquisition Lifeguard. In 2000, he sold JCMR after 27 years and helped with the six-company integration that followed. Jake has also previously started a bank, which gave him more insight on the IT securities market. Jake made it his mission to help CEOs view technology as a core feature of successful acquisition strategies by teaching them how to build a technology-fueled M&A plan. He is also committed to the community and has participated in many charitable events. He is a founder of the Matthews-Mint Hill Optimist Club and a Board Member of the Ballantyne IT Professionals Non-profit as well. Quotes: 04:48 - “If anything can go wrong, it’s going to be the technology.” – Jake Kent  12:51 - “Everything’s viewed as an expense if they don’t know this whole concept of normalizing EBITDA and multiples.” – Ryan Tansom  14:39 - “So the first one is really looking at the afterthought and not thinking about technology and how technology can enable your business and drive your business, increase your customer experience and things like that.” – Jake Kent 17:32 - “If you haven't invested in enough training to help that person make that transition, they're going to really struggle.” – Jake Kent 21:07 - “They go into this larger organization with expectations that it’s going to be much better and it’s way worse because they don’t actually have the capacity to actually onboard all of those resources.” – Jake Kent   29:33 - “The money’s going to be spent, regardless. It’s more about who’s going to spend it.” – Ryan Tansom 33:03 - “Users don’t like change.” – Jake Kent  39:03 - “Their cyber security did not cover all of the costs associated with getting them back up and running.” – Jake Kent  41:41 - “That is the most frustrating thing that I’ve personally run across, is to have someone with no enterprise experience, no executive communication skills, and tries to do everything on the cheap because they’re scared to ask their boss for money.” – Jake Kent  43:35 - “It’s a cost of doing business.” – Jake Kent 43:54 - “Hey, we're going to have technology-fueled growth, and we're going to leverage technology to actually automate processes, reduce our overall costs associated with doing business.” – Jake Kent 44:50 - “The CEO and CFO, they don’t know how to interview an IT person.” – Jake Kent  45:55 - “You’re trying to tap into CIO-level thinking.” – Ryan Tansom  46:48 - “There is an application technologist that grew up in the application world, and then there is an infrastructure technologist that grew up in the infrastructure world.” – Jake Kent 50:08 - “The via leans one of two ways: It either leans toward the manufacturer and the manufacturer gets as much gear or as much software as they can into this company at the highest profitability.” – Jake Kent   Links and Resources: The Acquisition Lifeguards Mastering Your Cash Flow Digital Course ARKONA Boot Camp Reach out to me if you have questions about the boot camp!   You can also reach out to me via email at rtansom@arkona.io, or on my LinkedIn.

The financial and cultural risk of hiring a C-suite executive is huge. Stats show that it could cost anywhere from 1-3 times their salary if it doesn’t work out. Today’s episode is all about what you can do to ensure the highest probability of long-term success when onboarding new executives. Steve Moss is the founder and president of Executive Springboard, which helps companies integrate C-suite executives into new roles. 72% of CEOs claim onboarding is critical, yet only 47% of their onboarding programs last more than a week. Steve shares how pairing C-suite executives with external mentors who have sat in their functional chairs increase the retention rate of new executives to 95%. Newly hired executives can lean on a mentor to navigate the minefield of culture, politics, relationships and unmet expectations that can derail even the most talented executive. Listen in to hear how you can make sure the next rock star you hire works out over the long term.   What You Will Learn In Today's Podcast Interview The five top reasons executives leave and what to do about them How trust plays a factor in hiring and onboarding Why highly talented — and highly paid — executives need and deserve time to integrate into a company The true cost of turnover if you hire the wrong executive Why a C-suite candidate should come to an interview with a 90-day plan, even if it’s completely wrong When to look internally versus externally for your next hire Why an outside mentor can increase executive retention to 95% What questions you should ask during an interview to get a better feel for a candidate’s fit, and what questions you can’t resolve until they’re hired The difference between a mentor and a coach The best ways to match executives with a mentor, and what qualities, experiences and attributes that mentor should have Why managing change is like managing grief, and how recognizing that helps integrate a new C-suite executive How important it is to have trust and confidentiality with your mentor Culture is more than a feeling employees get; it’s about all the small goings-on and what the business is driving for Why the most successful onboarding lasts eight months (and the stats to back this up) How to measure the impact of mentorship, especially if your mentor is outside the company Are You Growing The Value of Your Business Take The 2-Minute Assessment To Get Your Intentional Growth Score™ And 1-Page Vision Board. ●      Are your company's current initiatives intentionally designed to increase the value of the business? ●      Do you know what you want from your business long term and why? ●      Do you know what your company is worth? ●      Do you know the differences between Management, Family Transitions, PE Firms, ESOPs and Strategic Buyers? ●      Does the business have a written strategic plan on how to achieve the desired normalized EBITDA and valuation?   About the Guest: Steve Moss is founder and president of Executive Springboard, a network of current and former C-suite executives who mentor leaders to help them excel in new roles that gets clients a 95% retention rate over 18 months. Steve is passionate about building people and helping them with their careers.   Quotes: 09:06 - “Companies are facing high risk, and the costs of that risk are high at the same time.” – Steve Moss  10:29 - “The hard costs are probably closer to three times salary.” – Steve Moss 13:00 - “It’s people issues that are getting them, 90%+ of the time.” – Steve Moss 14:33 - “How are you going to work well and play well with other people” – Steve Moss  14:58 - “When you’re coming in from the outside, almost nobody says, ‘We want you to keep doing the same thing your predecessor did.’” – Steve Moss 16:29 - “If you put a drop of milk in a gallon of gasoline, nothing happens. But if you put a drop of gasoline in a gallon of milk, the whole thing sours.” - Ryan Tansom 17:12 - “If the answer is inside an organization, and somebody has succeeded in that culture, consider them first before you go outside.” – Steve Moss  18:36 - “People will struggle early on. They need to get their footing.” – Steve Moss 19:00 - “Even this very senior person is a work in progress, and they need help.” – Steve Moss  24:20 - “It helps to have someone who has been there, done that, in the situation that you’re facing.” – Steve Moss 26:37 - “The owner can’t be that functional coach or mentor, because they’re the one full of all the complexities that the executive was hired to solve.” – Ryan Tansom  29:34 - “Everyone can almost brain-wash themselves into thinking something will work.” – Ryan Tansom  32:26 - “There was a new tune I needed to dance to.” – Scott Moss  33:31 - “It takes about eight months to build a relationship with someone.” – Ryan Tansom  34:17 - “How long does your onboarding last? 53% say a week or shorter.” – Steve Moss 36:29 - “After an eight month process, people feel like they’re in their groove.” – Steve Moss 40:39 - “I think a lot of the time, coaches unfairly have a stigma that the work is remedial.” – Steve Moss 43:27 - “There are so many things that can go wrong in a long-distance commute.” – Steve Moss 50:52 - “There does seem to be something that’s magic about the first 90 days.” – Steve Moss  51:23 - “It’s good council for someone to be quieter; to use the two ears instead of the one mouth.” – Steve Moss  54:03 - “When you catch somebody in an authentic moment, is that something that works with what your organization is?” – Steve Moss   Links and Resources: Executive Springboard   Mastering Your Cash Flow Digital Course ARKONA Boot Camp Reach out to me if you have questions about the boot camp! You can also reach out to me via email at rtansom@arkona.io, or on my LinkedIn.

Bryan Clayton is a serial entrepreneur with multiple exits under his belt and a unique take on being a business owner —  viewing your business like a video game — and how it can help you accomplish your loftiest goals. His first company, PeachTree, grew to be one of the largest landscaping companies in Tennessee at over $10M in annual revenues, before selling in 2013. Bryan only took a short sabbatical (more on that in the interview) before co-founding GreenPal, an online marketplace that connects homeowners with local lawn care professionals. GreenPal is already doing over $20M, over 100,000 active customers, and completes thousands of transactions every day.   What You Will Learn In Today's Podcast Interview How the landscaping industry is a great place to learn how to be an entrepreneur What Bryan learned from selling his first company at 32 The impact software has on manual labor-facing businesses Why Bryan says being an entrepreneur keeps his life interesting and helped him grow as a person How running a business and writing are alike The biggest difference between being a business owner and an entrepreneur When you should go into debt versus push for a debt-free business Why you need to bake your philosophies into your business-running DNA How venture capital is like rocket fuel and what impact it has on unprepared business owners The real story of Uber’s success and the fallacy of “overnight” successes When receiving funding, you have to aware of the bet you’re taking What makes pragmatism the most valuable trait for an entrepreneur in Bryan’s eyes The impact finding your ideal team size has on business planning Why you should cut your teeth on smaller businesses to get a win under your belt before you start the big project What land-and-expand can do for your business Why you should make it easy for your customers to talk to you Don’t let the bad actors get to you; feedback generally is in good faith Why necessity is the mother of all invention   Are You Growing The Value of Your Business Take The 2-Minute Assessment To Get Your Intentional Growth Score™ And 1-Page Vision Board. Are your company's current initiatives intentionally designed to increase the value of the business? Do you know what you want from your business long term and why? Do you know what your company is worth? Do you know the differences between Management, Family Transitions, PE Firms, ESOPs and Strategic Buyers? Does the business have a written strategic plan on how to achieve the desired normalized EBITDA and valuation?   About the Guest: Bryan Clayton is a serial entrepreneur with multiple exits under his belt and a unique take on the home services market. He is co-founder of GreenPal, a web and mobile app that instantly connects homeowners with home service professionals, where he actively engages with both his team and customers. Outside of work, Bryan likes to hang out with his family and play video games.   Quotes: 04:45 - “All of the fundamentals you learn in the lawn-mowing business apply to every business.” – Bryan Clayton 08:39 - “My business is the thing that lends purpose to my life. It is the thing that causes my life to be interesting. It is the thing that causes my life to almost matter. I didn’t think about it at the time but looking back at it, that’s the case. That’s just how I’m wired.” – Bryan Clayton 09:30 - “To live an interesting life, you have to live an interesting story. You have to do interesting things in your life”  – Bryan Clayton 10:00 - “My business is the storyline to my life.” – Bryan Clayton 11:15 - “I think, if you’re doing business right, every three to four to five years, you should completely evolve as a new person. I’m a completely new person than I was a decade ago when I started this business because the business required that of me.” - Bryan Clayton 15:29 - “To be good at business, you have to be 80-20 good at a lot of different things.” – Bryan Clayton 17:17 - “It might almost be the delineation between a business owner and an entrepreneur.” – Bryan Clayton 21:11 - “So I’m building this company debt-free.” – Bryan Clayton 30:31 - “We had to fund the business off of its own revenue.” – Bryan Clayton 32:16 - “I’m not better than this, I’ve gotta do it.” – Bryan Clayton 34:59 - “Culture doesn’t matter in level 1 or 2.” – Bryan Clayton 37:40 - “Get a single or a double under your belt, then go for the big thing.” – Bryan Clayton 39:11 - “Remove ‘or’ and put ‘and.’” – Bryan Clayton 43:06 - “You spent more money and you’re not mad about it.” – Bryan Clayton 46:44 - “I do at least an hour a day of customer support.” – Bryan Clayton 46:52 - “There’s a gap that develops between customer logic and company logic.” – Bryan Clayton 50:16 - “That's not happening to you. It's happening for you.” – Bryan Clayton 53:09 - “You’ve got to make it really frictionless and accessible to reach you.” – Bryan Clayton 56:22 - “If you’re doing the business right, it should really be you and then the scaffolding around you.” – Bryan Clayton 57:53 - “The more your parents don’t understand what you’re working on, the better your chance of success.” – Bryan Clayton 61:01 - “Your living room needs to be a classroom.” – Bryan Clayton   Links and Resources: Bryan Clayton’s Instagram: @bryanmclayton Greenpal: https://www.yourgreenpal.com/  Mastering Your Cash Flow Digital Course ARKONA Boot Camp Reach out to me if you have questions about the boot camp!   You can also reach out to me via email at rtansom@arkona.io, or on my LinkedIn.

If you’re acquiring a business, immediately overhauling the way the company operates is not likely going to be the most effective strategy. Unless the company was a fire sale, you’ll lose customers and staff by changing too much too soon. Getting people who are already in the company to buy-in to what you’re planning is crucial. When you buy a business, you’re acquiring all of its people too—and you can’t just expedite trust.   On today’s show, we have Kylon Gienger, president of Acquira (an investment fund for people looking to buy small businesses and an accelerator for those looking to do the same), who is going to prove the value of securing key relationships in new acquisitions, particularly with the people who will be executing the strategic plan to increase the value of the business. On the way, we explore the crucial role of emotional intelligence for any business buyer, the different types of search fund investment structures and what an ideal acquisition entrepreneur profile looks like. This is an episode you don’t want to miss if you’re looking at taking over a new operation.   What You Will Learn In Today's Podcast Interview   Why the acquisition entrepreneur is on the rise and how they can help fill a void in the impending wave of Baby Boomer transitions The differences between on-market and off-market deals How private equity is expanding the multiples in the home services industry Why some sellers would be willing to take less of a purchase price to sell their “baby” What the “gauntlet” is and how it’s used to filter the investors and business buyers Acquira brings into their ecosystem Why you should never underestimate the human component of a deal—livelihoods depend on it The reason you should keep on the previous owners in any lower market companies you acquire, if possible How to hire good people—those who match your values as well as have the skills and training you need in the role What factors Acquira considers when evaluating new businesses to invest in and their strategies to mitigate risks discovered How Acquira is using EOS to onboard the companies they buy When you should compromise with established staff rather than steamroll their ideas post-acquisition The value of ongoing learning as a business owner (even if it’s just-in-time!) Why understanding the human element of transactions can help you rise to the top as the buyer of choice What the "Silver Tsunami" investment landscape looks like as $10 trillion in Baby Boomer business assets makes its way to market How to make the transfer of ownership enjoyable rather than traumatic Building trust in the culture of your company is vital to making the value creation changes you need Are You Growing The Value of Your Business Take The 2-Minute Assessment To Get Your Intentional Growth Score™ And 1-Page Vision Board. Are your company's current initiatives intentionally designed to increase the value of the business? Do you know what you want from your business long term and why? Do you know what your company is worth? Do you know the differences between Management, Family Transitions, PE Firms, ESOPs and Strategic Buyers? Does the business have a written strategic plan on how to achieve the desired normalized EBITDA and valuation?   About the Guest: Kylon Gienger is president of Acquira, and investment fund for people looking to buy small business and an accelerator for people looking to do the same. He is a serial entrepreneur himself, and wants to make others feel empowered as well. When he’s not helping build stronger companies, Kylon enjoys snowboarding and hanging out with his family.   Quotes: 06:57 - “Action begets more action” – Kylon Gienger 09:00 - “I’d like to skip the whole startup process.” – Kylon Gienger 12:09 - “They’ve already figured all that out.” – Kylon Gienger 12:43 - “How can we optimize that business and how can we grow it?” – Kylon Gienger 14:04 - “Coming from outside the business, I have a very objective view of things.” – Kylon Gienger 16:20 - “What we encourage folks to so—and what I’m currently doing—is spend the first three to six months in the business, understanding how it’s been operating for the past decade.” – Kylon Gienger 20:14 - “There’s a lot of wannabe buyers out there, not a lot of qualified buyers.” – Kylon Gienger  25:15 - “Ideally, if you can, retain that owner somehow.” – Kylon Gienger 32:13 - “Instead, our buyers pay that. They pay a small percentage brokerage to us for bringing in that deal and kind of connecting, connecting them.” – Kylon Gienger 37:47 - “This is why we look for buyers that are high EQ.” – Kylon Gienger 43:12 - “It’s like being married.” – Kylon Gienger 52:05 - “When you have more of that long-term mentality, you can be more patient for sure.” – Kylon Gienger 55:45 - “There's roughly $10 trillion in small business assets that we switching hands over the next decade or so.” – Kylon Gienger   Links and Resources: Acquira.com/intentionalgrowth Kylon’s email: Kylon@acquira.com  Mastering Your Cash Flow Digital Course ARKONA Boot Camp Reach out to me if you have questions about the boot camp!   You can also reach out to me via email at rtansom@arkona.io, or on my LinkedIn.

With the current state of the world, it’s only natural to wonder how stable the economy is, what is going on in the markets and if there are any major concerns on the horizon. Alan Beaulieu is on the show today to give us a market update. He is a principal at ITR Economics, which has had an unmatched 94.7% forecast accuracy at four quarters out since 1985. ITR has also predicted an economic downturn in 2030 as big as the Great Depression. Alan has a reputation as an accurate, straightforward economist, delivering award-winning workshops and economic analysis seminars world-wide for the last 30 years. Alan has a reputation as an accurate, straightforward economist who has delivered award-winning workshops and economic analysis seminars world-wide for the last 30 years, and has co-authored three books with his brother Brian Beaulieu: Make Your Move, Prosperity in the Age of Decline and But I Want It!       What You Will Learn In Today's Podcast Interview The impact the 2020 pandemic has had on the current and future states of the economy The leading indicators ITR Economics uses to make their economic forecasts and how the four phases of a business fit in How a lack of “sound financial thinking” is helping to spur the next depression The importance of measuring your rate of change and how it will help you predict the future How Alan and his team forecast with a 95% accuracy during the 2020 pandemic The impact of 80 million Americans drawing social security (within the next decade), be on prescription drugs and using Medicare—double the 40 million who use such programs today What modern monetary theory (MMT) is and how it could impact the future of our economy Why one could argue we’re driving the bus straight toward the cliff when it comes to our economy When to pass on growth rather than overextend The fallacy of equality Why ITR Economics is forecasting a serious depression by 2030 How focusing on relevant producer price index (PPI) can help you navigate your business through a recession What to do to avoid floundering during a depression USA’s new place in the global market and what’s next What ways you can start de-risking your business today to better prepare for the future How the USA’s and China’s economies match up and some things to expect going forward Are You Growing The Value of Your Business Take The 2-Minute Assessment To Get Your Intentional Growth Score™ And 1-Page Vision Board. Are your company's current initiatives intentionally designed to increase the value of the business? Do you know what you want from your business long term and why? Do you know what your company is worth? Do you know the differences between Management, Family Transitions, PE Firms, ESOPs and Strategic Buyers? Does the business have a written strategic plan on how to achieve the desired normalized EBITDA and valuation?   About the Guest: Alan Beaulieu is principal at ITR Economics, which has had an unmatched 94.7% forecast accuracy at four quarters out since 1985. He has a reputation as an accurate, straightforward economist, delivering award-winning workshops and economic analysis seminars world-wide for the last 30 years. Alan has also coauthored, with his brother Brian Beaulieu, the books Make Your Move, Prosperity in the Age of Decline and But I Want It!   Quotes: 05:54 - “What do I have to do to miss this great depression?” – Alan Beaulieu 08:58 - “The world’s coming to an end. We had to tell our clients what the year was gonna look like.” – Alan Beaulieu 11:35 - “We’re so expensive in the United States that we Boomers are a major cost of the Great Depression. It’s not a pleasant thought.” – Alan Beaulieu  12:17 - “There are 40 million, in this country right now, drawing social security and prescription drugs and Medicare. That’s going to almost double in the next decade.” – Alan Beaulieu  13:25 - “You know MMT is out there, and while it’s unofficial in this country, it’s very real.” – Alan Beaulieu 13:55 - “At some point, someone has to make a return and someone has to make money.” – Ryan Tansom 17:31 - “The culture is working against sound financial thinking.” – Alan Beaulieu  21:33 - “Your listeners should know this is temporary. We're not going to see massive systemic inflation for years.” – Alan Beaulieu 21:53 - “When I start seeing painful inflationary pressures, what should I have done to prepare myself?” – Alan Beaulieu  31:07 - “It begins with the rate of change.” – Alan Beaulieu 35:14 - “That’s one of our goals here, to help businesses see the future. That’s our passion is to see the future first.” – Alan Beaulieu  37:10 - “As long as the data set continues, as long as this world doesn’t change, this will work. But then there’s the falsehood, right?” – Alan Beaulieu  37:58 - “You do have to be in industries that will be in demand, even with a Great Depression upon us.” – Alan Beaulieu 42:29 - “They’re going to think I’m stupid.” – Alan Beaulieu 47:26 - “China’s got more problems than we do. We just don’t hear about them.” – Alan Beaulieu  51:54 - “Our trade relations combined Canada, Mexico is greater than that of China. So I mean, our nearest neighbors are our best friends.” – Alan Beaulieu 54:51 - “I think the transfer of wealth that people talk about is overstated. Because it is in pockets, it’s not ubiquitous. Wealth is also very much self-defined.” – Alan Beaulieu  56:39 - “Take risks now, as in invest in your business for future growth.” – Alan Beaulieu   Links and Resources: Episode with Alex Chausovsky: 10 Year Economic Forecast: 2019 Downturn, 2030 Depression Make Your Move: Change the Way You Look At Your Business and Increase Your Bottom Line, by Alan Beaulieu Prosperity in The Age of Decline: How to Lead Your Business and Preserve Wealth Through the Coming Business Cycles, by Alan Beaulieu ITR Economics website Mastering Your Cash Flow Digital Course ARKONA Boot Camp Reach out to me if you have questions about the boot camp!   You can also reach out to me via email at rtansom@arkona.io, or on my LinkedIn.

Access to capital is crucial in order to take a dream and turn it into a business, create wealth and build a future full of opportunities. Today’s show focuses on the impact access to capital (or lack thereof) has on a Black business owner’s ability to create wealth through equity in a business. Rachel Wilson and Elliott Holland from Collab Capital share why and how they raised $50 million to invest in Black entrepreneurs—with backers such as Apple, Goldman Sachs, Google, The Andrew W. Mellon Foundation, Mailchimp and PayPal—as their debut move, making it one of the largest funds closed from an entirely Black-led firm solely committed to Black founders. Rachel and Elliott debunk the scarce Black tech founder myth, plus share the investment strategy that increases Collab Capital’s investors’ IRR while hitting the company’s goal to establish a path to economic parity for Black communities by giving Black entrepreneurs access to capital and establishing generational wealth in a community that has historically been denied it. Learn the biggest challenges faced entering the market as an investment firm, as well as the individual barriers Rachel and Elliott had to overcome — and how that compares to what their parents faced not so long ago. Be ready to be inspired by industry disrupters working to bring about real change at a crucial juncture. What You Will Learn In Today's Podcast Interview The generational impact of compounding equity and access to capital has The great benefits capitalism can have when aligned with the right mission How home ownership is similar to owning a business when it comes to growing wealth What equality really looks like in the business world Stories to better understand the underlying causes of inequity in the market (and society) The unintentionally negative impact a ‘core group’ of people who control access to capital can have How solving the equity issue is going to require purposeful use and allocation of capital Why Black investors are more likely to have to go to friends and family to fund raise and what Collab Capital is doing to rectify this What impact recent social unrest has had on the market and Collab Capital The fallacy of uncorrelated, outsized returns What a shared profit and collaborative endorsement agreement is and how it can help grow a business What it was like for Elliott’s dad as a Black financial consultant and what has (and has not) changed since the ‘60s How focusing on lifestyle businesses allows Collab Capital to avoid the typical churn-and-burn of the industry Why Collab Capital’s return on investment is good for both the companies they invest in and their investors When celebrities and influencers can improve your business Where private equity overlaps with a portion of profit model How Collab Capital finds companies to invest in   Are You Growing The Value of Your Business Take The 2-Minute Assessment To Get Your Intentional Growth Score™ And 1-Page Vision Board. Are your company's current initiatives intentionally designed to increase the value of the business? Do you know what you want from your business long term and why? Do you know what your company is worth? Do you know the differences between Management, Family Transitions, PE Firms, ESOPs and Strategic Buyers? Does the business have a written strategic plan on how to achieve the desired normalized EBITDA and valuation?   About the Guest: Rachel Wilson is the principal and head of operations at Collab Capital, where she helps organizations (including start-up companies) increase brand awareness, build strategic relationships, and creates programs that benefit consumers, staff, and stakeholders. She wants to create equal access and new opportunities for those who traditionally experience greater barriers to entry. Elliott Holland is principal at Collab Capital and has more than 10 years of experience executing middle market deals as an entrepreneur, spending his own money on diligence. He fully understands the challenges in executing good deals and avoiding lemons. He trained at Harvard Business School and spent almost a decade as an independent sponsor and business buyer before starting Guardian Due Diligence, where he is still managing partner.   Quotes: 10:35 - “I’ve always been interested in helping Black entrepreneurs gain access to capital.” – Rachel Wilson 12:34 - “I thought it was a perfect opportunity to join forces and try to change the narrative around the Black founder.” – Elliott Holland 16:19 - “And even now, transitioned to 2021, we still see huge gaps in wealth, gaps in access, gaps in understanding and characterization of certain cultures.” – Elliott Holland 16:52 - “In a social realm, you want to be as equitable as possible. So that’s the social lens, right? But I’m also a capitalist. From the capital lens, we all know that businesses, people, situations, that get under-invested in and still thrive, have a likelihood of having an unfair advantage relative to competition once the capital access problem is solved.” – Elliott Holland 20:13 - “This is not about equal outcomes. This is about equal starting blocks.” – Ryan Tansom 21:54 - “The value of the dollar has reduced.” – Rachel Wilson  23:05 - “When does it make sense to go after investment and leverage what I’ve done already?” – Rachel Wilson 25:19 - “Home ownership is the same way. As long as you wake up, go to work, pay your bills. You're going to have an asset that is 60% of Americans wealth by accident. So it literally comes down to access and waking up and going to work.” – Ryan Tansom 26:15 - “After business school, I really was aware of how there's a piece of it that's pure sort of racism: Access. People purposefully prevent certain people from getting into certain places.” – Elliott Holland 31:05 - “We also had to think about our communities. They can sometimes be very conservative and risk-averse because they’re first-time wealth builders themselves.” – Rachel Wilson 34:33 - “One of the huge benefits of a Collab model is we built in the ability to get influencers for each company that we invest in to contribute to the growth of companies and participate in the growth of the companies on a per company, per activity, tailored basis.” – Elliott Holland 37:20 - “We want to maximize the number of Black millionaires and/or Black wealth that we create, and so doing it just for a select few in an outside way wasn't as interesting as doing it for the many in a more sustainable way.” – Elliott Holland 41:40 - “We’re optimizing for the IRR, baby!”  – Ryan Tansom 46:58  - “Many limited partners doubted that there was a big enough pool of black founders for this to make any sense, to begin with. While raising capital, we had to prove that to them to even be considered in some instances.” – Elliott Holland 56:33 - “There’s riches in niches.”  – Elliott Holland   Links and Resources: Collab Capital Elliot’s previous episode: Episode 231: Why Buying and Selling Companies Is a Barbaric Sport Mastering Your Cash Flow Digital Course ARKONA Boot Camp Reach out to me if you have questions about the boot camp!   You can also reach out to me via email at rtansom@arkona.io, or on my LinkedIn

Software and tech companies get much higher valuations than traditional service-based companies because these “digital” companies are valued on a multiple of revenue instead of a multiple of EBITDA. This huge difference in how the business is valued provides a unique opportunity to reap high financial rewards by transforming old analog businesses into technology companies. Today’s guest, Corey Tollefson of ArcSpring, shares how his company combines capital, technology, operational expertise, and design to unlock exponential growth in traditional businesses. He and his team of rock stars (a bunch of heavy hitters from Oracle and Infor) are creating real value—and multiple arbitrage—by investing in companies they think should be software companies.   What You Will Learn In Today's Podcast Interview What ‘Analog to Digital’ (A2D) means and how it impacts the value of a business Why transforming an analogue business into a technology business changes the valuation methodology How ArcSpring scales their portfolio companies by focusing on ‘micro-verticals’ The difference between a spreadsheet jockey private equity firm and one that has an operations background How ArcSpring defines digital transformation Why ArcSpring bought the largest flag football league in the area and how they scaled it by integrated technology  Why having—or upgrading—an ERP system is not the type of technology that can change your valuation multiple How to mine your customer base for new products and services  Why a five-year timeline to transform a business from analog to digital is more than enough time to capture the value creation and multiple arbitrage  How his company got to the tagline “Enterprise software sucks!” Why the experience and involvement of the general partners at a private equity firm matters How to use your customers and their needs as the backbone of your digital transformation Things to think about when you are trying to determine how much equity you should be rolling back into your business What makes companies consider becoming a SaaS business   Are You Growing The Value of Your Business Take The 2-Minute Assessment To Get Your Intentional Growth Score™ And 1-Page Vision Board. Are your company's current initiatives intentionally designed to increase the value of the business? Do you know what you want from your business long term and why? Do you know what your company is worth? Do you know the differences between Management, Family Transitions, PE Firms, ESOPs and Strategic Buyers? Does the business have a written strategic plan on how to achieve the desired normalized EBITDA and valuation?   About the Guest: Corey Tollefson is co-founder and general partner at Arcspring, a PE firm that invests in companies that should be software companies, and has over 20 years of experience in the software and technology industry. He’s on the Board of Advisors for #YesWecode, Sezzle and PLNIFY. Previously, Corey was senior vice president and general manager at Infor and group vice president at Oracle. He also has a BSc in Marketing and Management Information Systems from the G.R. Herberger College of Business at Saint Cloud State University.   Quotes: 06:57 - “To really own an industry and to become dominant in an industry, you have to have micro-vertical solutions.” – Corey Tollefson  07:21 - “The more you can speak to running a company’s business, then all this other stuff like database, and middleware, and hardware, cloud… It all comes with it.” – Corey Tollefson  09:00 - “In an industry like software and technology, if you’re not growing 20%, you’re dying.” – Corey Tollefson 16:48 - “Our thesis is really around building an underwritten model that aligns to private equity, but has the upside case of venture.” – Corey Tollefson 28:00 - “We want to reinvent—in our own shape, way, and form—private equity.” – Corey Tollefson   29:36 - “We’re not buying software companies, we’re buying companies that should be software companies.” – Corey Tollefson  38:12 - “The relationship doesn’t end at the signature, the relationship begins at the signature.” – Corey Tollefson  38:29 - “We’re not doing ERP so this isn’t heart and lung surgery.” – Corey Tollefson 39:47 - “We’re looking at, how do we take some of your revenue and pivoting it onto more of a recurring revenue model. How do we open up that possibility of creating a fin-tech platform?” – Corey Tollefson 46:59 - “We did some thematic research and we found that there are 1.8 million kids in the United States playing flag football every year.” – Corey Tollefson 48:01 - “The thesis is that it’s a high growth market. We want to consolidate that market. There’s multiple vectors to revenue.” – Corey Tollefson 48:40 - “The other part of the thesis is that we want to lower the cost of ownership, and lower the cost for these parents and their kids.” – Corey Tollefson 49:14 - “For us, we could improve unit economics per player at a granular level.” – Corey Tollefson 53:32 - “When you’re selling software, as software operators, they vote with their wallets, so you have to create a better experience for them or they’re not going to continue to pay.” – Corey Tollefson  58:38 - “If we can create a Robin-Hood-like application, the platform becomes itself. Inherently, the way the customers engage with it, that’s the legacy. That’s what you’re buying.” – Corey Tollefson    Links and Resources: Arcspring Corey Tollefson, LinkedIn #YesWeCode Sezzle PLNIFY Mastering Your Cash Flow Digital Course ARKONA Boot Camp Reach out to me if you have questions about the boot camp!   You can also reach out to me via email at rtansom@arkona.io, or on my LinkedIn.

On today’s show, we’re focusing on how a founding entrepreneur grew and sold his tutoring business to private equity. John Rood previously co-founded Next Step Test Preparation, which grew from a 2-person tutoring company to one of the largest MCAT test prep companies in the US. After building it up from scratch, he sold it to private equity in 2018. He runs us through why he chose private equity over other sales options (including an ESOP) and how that influences his buying patterns today.  After selling, John started a search fund: an investment vehicle through which an entrepreneur raises funds from investors in order to acquire a company in which they wish to take an active, day-to-day leadership role. John isn’t shy about diving into how search funds operate, what makes an attractive acquisition target, how capital structures influence a purchase, and the incredible value of long-term planning if you want to achieve your goals and ultimate lifestyle. In this episode, you’ll learn all about search funds: what they are, how they’re structured, and how they might be beneficial and a viable option if you’re partnered with the right person who is going to be the owner/operator. If you want to learn more about search funds, go check out the Intentional Growth course at Arkona.io.   What You Will Learn In Today's Podcast Interview How John turned his small tutoring business into a sellable business What a search fund is and how to make it work for you The big differences between private equity and a search funds Why you should put meaning and purpose behind your business How EOS© helped turned John’s business around John’s reasoning when selecting his exit, including what eliminated an ESOP for him The impact creating a board of advisors early on (before it was necessary) Why you should sit down and plan out what you want your life—all elements—to look like in 30 years What you should think about when choosing your staff to better address fit The value of building a moat around your clients and its impact on your valuation How John handled an out-of-the-blue offer Why it’s crucial to understand how valuations work if you want to have a successful sale What your network can tell you about market trends, especially in M&A The importance of connecting with your employees and equity partners to get the full picture of what they value in your business How to balance drawing a salary from your business versus taking distributions Why you should look at hiring like recruiting for a sports team—you’re constantly filling your bench What made John select an investment banker instead of a business broker How to shed societal values that don’t serve you, and the incredible benefit of therapy on figuring things out John’s key insights from selling his business that every business owner needs to hear   Are You Growing The Value of Your Business Take The 2-Minute Assessment To Get Your Intentional Growth Score™ And 1-Page Vision Board. Are your company's current initiatives intentionally designed to increase the value of the business? Do you know what you want from your business long term and why? Do you know what your company is worth? Do you know the differences between Management, Family Transitions, PE Firms, ESOPs and Strategic Buyers? Does the business have a written strategic plan on how to achieve the desired normalized EBITDA and valuation?   About the Guest: John Rood is an education entrepreneur. He co-founded Next Step Test Preparation, which grew from a 2-person tutoring company to one of the largest MCAT test prep companies, and sold in 2018 to private equity. John now searches for small businesses to acquire in the education or senior care industries. Additionally, he is working on a platform connecting university alumni to peer mentorship groups. He lives in Chicago with his wife and two boys.   Quotes: 11:55 - “We put together a little board of advisors early on in our business, before we really needed to.” – John Rood 12:51 - “Let’s go get the right people, the right staff, and kind of go after it.” – John Rood 15:16 - “If we want to have a company that’s valuable as an enterprise, we have to get out of just doing the services.” – John Rood 18:13 - “There’s a certain subset of equity holders that care about the enterprise value of the business. And then there’s a much larger piece of your business, of your customers, of your customers, of your employees that cares about ‘Are we doing something that’s good for the world? Am I respected by my manager? Is my compensation fair?" – John Rood 20:13 - “Think about starting with a business where the cash cycles are really good.” – John Rood 20:29 - “I actually think I took too much out of the business. If I had to do it again, I would have invested more.” – John Rood 21:39 - “You really have to separate out your labor from your equity.” – John Rood 24:57 - “You have to have a bench of people that you can go hire.” – John Rood 31:32 - “If you’re going to hire an intermediary, you can’t just hire the first one. You’ve got to get intros to a couple people. See who’s doing a lot of deals, specifically in your industry.” – John Rood 36:08 - “What do I want my worklife to be for the next thirty years?” – John Rood 36:40 - “I hadn’t sat down and thought, ‘Here’s what I want to accomplish when I’m sixty. I’m doing that stuff now and I wish I would have done it back then. It really helps guide, are you making the right long term choices or not.” – John Rood 37:09 - “Do I feel fulfilled even if my business fails?” – John Rood 47:53 - “I think people underestimate the challenge involved in that because you still have to get humans to agree with you, to lend you the money, and to actually run the business.” – John Rood 53:06 - “If private equity wants to buy your business, they don’t want to go run it… whereas a search funder oftentimes will become the CEO of the business.” – John Rood   Links and Resources: John Rood, Twitter John Rood, LinkedIn Mastering Your Cash Flow Digital Course ARKONA Boot Camp Reach out to me if you have questions about the boot camp!   You can also reach out to me via email at rtansom@arkona.io, or on my LinkedIn.