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Strategic Growth Planning for a Nine-Figure Net Worth
The key insights from the snip are: Aiming for a $12.3 million yearly EBITDA in a 10-year timeframe, assuming a 32% average annual growth rate for a healthy business growth. Understanding that normal businesses grow at rates between 15% to 40% annually and outliers reaching $100 million in a few years are exceptions, not the standard. Realizing that in the middle market, businesses sell for 8 to 10 times their EBITDA, indicating a need for a $12 million profit per year to achieve a nine-figure net worth over time. By focusing on consistent growth, long-term perspective, and aiming for average exit prices, a business can achieve substantial success over a 10-year period.