How a Disciplined Approach to Growth Led to a $250 Million Sale – Yahoo Finance

What lessons can an entrepreneur learn from  Michel Lotito? AKA Monsieur Mangetout (Mr. Eat-It-All). Lotito had, let’s just say, unusual dining habits. His diet consisted of bicycles, TV sets, beds, shopping carts, skis, a coffin, multiple chandeliers, and in 1978—his greatest feat of all—a Cessna 150 aircraft.
I could make a joke about needing a cast-iron stomach, or a Pac-Man-like hunger to launch a business, but the real takeaways are twofold: First, Lotito kept the end goal in sight during every course of his dinner (propeller, engine, altimeter, etc.); and second, he comfortably took his time getting there. He didn’t finish chowing down on the Cessna, for example, until 1980. 
Every smart entrepreneur starts their business with the end in mind. As they infuse their heart and soul into the business, they maintain focus on growing its equity—knowing that it will take time and that they must break down each giant leap into smaller, more digestible steps. 
Related Turning Fear of Tech Into Exponential Growth
Bob Eisiminger never ate a TV set, but he definitely has the drive and work ethic to realize an ambitious vision. The evolution of his company, Knight Point Systems, is a lesson in patient, calculated decision-making with a clear goal in sight. Knight Point Systems began life in 2005 as a value-added retailer (VAR), a company that sells technology products along with the set up and service required to get them up and running (the value-add). This approach fits neatly into the “Moneymaker to Moonshot” business model I often tout: It solves a problem that a large organization has, namely de-risking new technology. Bob’s market consisted primarily of agencies within the U.S. Department of Defense—a natural fit given his military background. 
Value-added retail isn’t a great way to build equity. Margins are low and they don’t improve much with scale—an absolute requirement to achieve a high multiple in a sale. But it helped Knight Point build a customer base and positive reputation. This meant that over the years, contracts got bigger—from single products to systems to end-to-end solutions. By 2017, the first year Bob joined the Birthing of Giants Fellowship Week, the company was handling yearslong managed services contracts, a far more profitable and scalable business model than VAR. It had also built a $1.2 billion backlog, making it a very attractive acquisition target. 
Bob’s Cessna 150 was understanding that it was time to sell, but he had a problem: His current recruiting process wasn’t bringing in talent fast enough to keep up with demand. So, just as Lotito broke his meal down part by part, Bob dismantled his business and rebuilt it from scratch. The decision saved Knight Point some $75,000 per month and improved the company’s long-term prospects—which in turn increased its value.
Related How This Security Company Sold to the FBI—and Scored a Billion-Dollar Payday
In 2018, Bob returned for another Fellowship Week and set himself a goal: Sell the company within the year. Spoiler alert: He did just that, to the tune of $250 million. Bob finished his Cessna 150.
Are you working hard to build your company’s value? Are you taking the right steps—small and large— to make it happen?
Lewis Schiff runs the Birthing of Giants Fellowship Program, a one-week guided strategic planning process that’s attended by the owners of the fastest-growing companies in the world. He also runs Moonshots & Moneymakers: The Oxford Innovation Conference for American Entrepreneurs. 
Hear how Bob Eisiminger and other entrepreneurs built their companies from moneymakers to moonshots by signing up for Birthing of Giant’s free monthly video series, How I Did It.
The post How a Disciplined Approach to Growth Led to a $250 Million Sale appeared first on Worth.
Redfin plans to add zoning data to over 70 million homes' listing pages, to provide more information to buyers before they jump into the market.
The layoffs and cost-cutting that Intel Corp. executives recently warned about have begun in California, with a couple of hundred employees set to lose their jobs next month, and manufacturing employees worldwide being offered unpaid leave.
General Electric, whose spinoff of its health care and energy companies will leave Evendale-based GE Aerospace as the sole company, bought out every single print add in the New York Times for the first time in the newspaper's history.
High costs, lack of trained personnel and unexpected construction snags are among the issues cited by the Taiwanese company as it rushes to get the $12 billion factory ready to start production in December 2023.
A group of Meta Platforms, Inc (NASDAQ: META) workers who joined via a corporate training program alleged inferior severance packages compared to other workers whom the company recently laid off. The employees were members of Meta’s Sourcer Development Program, likely to help workers from diverse backgrounds obtain careers in corporate technology recruiting, CNBC reports. Nearly every member of Meta’s Sourcer Development Program, more than 60 workers, was let go from the company as part of its m
Even a dour outlook for the broader stock market couldn't outweigh good news for these companies.
If the project receives its final approvals, it will join two other formerly active General Electric properties scheduled for demolition.
Gasoline prices are falling sharply with the national average price targeting even more declines by Christmas.
Russia cut supplies of natural gas to Europe in response to the wave of international sanctions that followed Moscow's invasion of Ukraine.
Have an issue with your financial adviser or looking to hire a new one? Email picks@marketwatch.com.
At a time when rival retailers have struggled to address employee demands for higher wages and better benefits, Costco has managed to separate itself from the pack, building on a reputation as one of the friendliest places to work in retail.
Yahoo Finance Live anchors discuss Starbucks's new tipping system and customer backlash.
(Bloomberg) — Citigroup Inc. and creditors of Revlon Inc. fighting over an accidental $900 million payment the bank made two years ago said they are close to resolving their litigation over the mistake.Most Read from Bloomberg‘Huge, Missing and Growing:’ $65 Trillion in Dollar Debt Sparks ConcernWall Street Goes Risk Off as Bank CEOs Sound Alarm: Markets WrapEx-Deutsche Bank Trader Builds $6 Billion Fortune on Trading BoomThird Russian Airfield Hit by Drone as Moscow Accuses UkraineMiami’s Cryp
In its response to a lawsuit brought by Covid-19 vaccine competitor Moderna Inc., Pfizer Inc. does not mince words: Pfizer did not copy Moderna's patented technology, it says, and Moderna is rewriting history by claiming otherwise.
Oil markets swung into a massive redrawing of trade routes Monday as EU's embargo of Russian oil took full effect.
Contribution limits for IRAs, 401(k)s, and other plans can change from year to year due to cost-of-living adjustments. Here are the changes for 2022.
(Bloomberg) — Microsoft Corp. executives are set to meet with US Federal Trade Commission Chair Lina Khan and other commissioners Wednesday to make its final case in favor of its deal to buy gaming studio Activision Blizzard Inc., a person familiar with the meetings said.Most Read from Bloomberg‘Huge, Missing and Growing:’ $65 Trillion in Dollar Debt Sparks ConcernWall Street Goes Risk Off as Bank CEOs Sound Alarm: Markets WrapEx-Deutsche Bank Trader Builds $6 Billion Fortune on Trading BoomTru
From Salesforce and Beyond Meat to Snap, Lyft, and Robinhood, big names across a number of sectors have announced major layoffs this fall.
United Airlines Chief Executive Scott Kirby said a tentative contract agreement between rival Delta Air Lines and its pilots union would set an industry pattern. "It's a rich contract but I think the really good news is it means we'll all get deals done essentially on the same terms and can move forward," Kirby told Reuters on the sidelines of an event in Washington late Monday. Delta struck a tentative deal Friday to give pilots a 34% cumulative pay increase in a new four-year contract.
Yahoo Finance entertainment reporter Allie Canal joins the Live show to discuss the timeline for consolidation by competitors within the streaming space.

source

brucemeyernet

Learn More →

Leave a Reply

Your email address will not be published. Required fields are marked *