Asset Management Strategy for Business Equity : Maximize The Asset Value of Your Digital Business with Strategic Assistance

My business mentor who has a 9 fig+ net worth from Private Equity, and owns a chain of businesses from real estate to technology companies said that all business owners are PE Firms, unless they have a job with assistants, in which case they do not have a value-creating asset

I sat with that and I actually agree

So, what is creating a job for yourself with assistants?

Let's define that first so we can understand the rest

That is when you opt for a setup with assistants rather than a traditional team, which of course you've certainly embraced a unique approach.

While it offers flexibility and cost-saving advantages, it's essential traps you in a series of inconveniences and risks, which most of your favorite gurus who preach this, don't tell you.

Coordinating multiple assistants can be challenging, and there's a risk of relying too heavily on key individuals.

Additionally, you find yourself missing out on the diverse expertise a full team could provide which means all the responsibility of growing the business falls on your shoulders, and burnout knocks at your door, so you either back down from growing the business and let it stay at a particular revenue point, burn it all down and walk away, or slow the business down because you are mentally tapped out.

Do you know why this happens?

To navigate the challenges of scaling or growing a business successfully, a number of PE firms know that you bet on the team, so it's crucial to master the art of effective delegation and management.

If you own a business, unless you want it to die with you, and you aren't planning to grow it, and capping it at only making enough for you to live off of, you own an asset with equity in it.

The capital you are working on is yours

For some, the capital invested was sweat equity and you built a business that is incredibly valuable today

Therefore, it is your active duty to consistently create equity value for you.

That is your primary role as a CEO, not to oversee daily operations

There are essentially a couple of ways you can do this which we share with clients when we work with them on either the academy side or the agency, but let me give you an example to help you picture it

Say, you have a coaching business that brings in $500,000 every year from its monthly subscribers, with a 70% profit margin, that's $350,000 in gross profit.

Despite a slight churn rate of 3%, the business still manages to pocket $320,000 after accounting for lost customers.

With less than 5% liability ( debt that the business holds), the EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) comes out to $304,000.

This shows the business is doing well financially and has room to grow.

If you decide to sell the coaching business right now, you could potentially pocket around $608,000.

This estimate is based on a simple calculation where we double the business's annual profit, known as the EBITDA, which here is $304,000.

But keep in mind, the actual sale price could differ depending on how negotiations go, what the market's like, and other factors specific to the business such as risks, etc.

Now, let's say you aren't satisfied with this, and you want to increase your value of equity to get more money

To increase the value of your coaching business for a potential sale, you will focus on growing revenue, improving profitability, strengthening the brand, diversifying income streams, enhancing customer relationships, optimizing operations, and exploring new market opportunities.

These strategic actions will collectively boost the business's attractiveness to potential buyers and result in a higher sale price.

This is your JOB AS THE CEO

This is exactly what Private Equity Firms will do when they purchase your business and flip it later

So, you are in private equity, but are you doing your job?

Or are you stuck in the daily minutia that stops you from doing these strategic things?

So, when we say that we are growth partners when we work with you, it is because we do not just focus on the tactical elements.

Our mission is simple: we work with digital businesses that are tech-enabled & Tech Startups to attain profitable growth, implement a revenue team to remove founders from sales,&scale sustainably to create businesses that are turnkey solutions that can be exited at high multiples

My question to you is, are you ready to grow your equity value to take chips off the table by not having your entire net worth tied to your business?

Related Article : The Shift from Solopreneurship to a Profitable and Valuable Company

If so, Book a consultation to speak with us here

Let's work together to unlock the full potential of your business, increase its value, and pave the way for a lucrative exit strategy.

As your growth partner, we'll focus on strategic initiatives that drive sustainable growth, optimize operations, and maximize profitability.

By implementing proven tactics and leveraging our expertise, we'll position your business as an attractive investment opportunity for potential buyers, ultimately allowing you to reap the rewards of your hard work and dedication.

I got to be frank

If you are not ambitious, growth-oriented, and interested in financial success.

If you do not value efficiency, or strategic thinking, and are open to seeking external support to achieve your goals.

If you are not a business owner who values autonomy and seeking ways to maximize the value of your business as an asset, I can say with my full chest, we aren't the best match for you

But if you read that and you thought we described you

Don't wait any longer to start building wealth and securing your financial future. Reach out today, and let's embark on this journey toward greater success and financial freedom together.

About The Author

Tanya Kabuya is a seasoned operator and entrepreneur with a passion for driving revenue growth and enabling businesses to scale sustainably. With years of experience in the tech industry, Tanya is the founder and CEO of a revenue enablement firm dedicated to working with companies that are tech-enabled and tech startups.

Tanya's expertise lies in helping these businesses achieve profitable growth by implementing effective revenue strategies and building high-performing revenue teams. One of her key objectives is to empower founders by removing them from sales roles, allowing them to focus on strategic vision and overall business development.

Through her firm, Tanya specializes in creating turnkey solutions that enable businesses to scale efficiently and prepare for successful exits at high multiples. Her hands-on approach and deep understanding of the challenges faced by tech-enabled businesses and startups make her a valuable partner for businesses looking to achieve long-term success in today's competitive market.

Tanya's dedication to helping businesses thrive, coupled with her strategic insights and operational acumen, make her a trusted advisor in the world of revenue enablement and business growth.

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