In today’s episode of The Dropout Multi-Millionaire Podcast, we’ll be diving into a few lessons from my upcoming book, The Invisible Multi-Millionaire, which revolves around scaling businesses, preparing for a sale, and creating generational wealth through profitable delegation. We’ll get into the key factors influencing business sales, such as location, revenue streams, and the owner's role. You’ll also learn about the five phases of delegation which provide a practical roadmap for entrepreneurs seeking sustainable growth and long-term success. Tune in for practical and tactical advice on setting your business up for success in scaling and ultimately making a profitable exit. You don’t want to miss this one!
And we are back with the Dropout Multi-Millionaire Podcast, it's the multimillionaire podcast, because quite frankly, anybody can be a millionaire, but it takes a little bit more to be a multimillionaire. And by the way, at the end of today's show, I'm going to give you a discount code so that you can get my free intro master class on sales.
It's on my website. So stay tuned. It's going to be free with the code today. I have an announcement. And then we'll get into the episode. First, the announcement. I am working on another new book. I gotta be honest, I didn't think I was gonna write one this quick, but, uh, funny story is I did a live the other day and I was talking about my book, The Dropout Multi Millionaire, and we were talking about delegation and how if you're gonna sell your company, you kinda need to pull yourself out of the organization.
And somebody in one of the comments said, sort of like The Invisible Multi Millionaire. And I thought holy crap that that's perfect. And that is the title to the book. I literally went and I started writing it That afternoon. So the invisible multi millionaire is a direct followup to my second book, which was the dropout multimillionaire.
All right. So it's going to be a subtitle is going to be scaling your business, preparing for a sale and creating generational wealth. So what's the concept of this invisible multimillionaire. That's easy. First, it's about scaling your business. Scaling a business that eventually doesn't require you to actually run it.
It is what we call the art of profitable delegation. If you are thinking about selling your business at some point, or if you are already planning on selling your business, there are absolutely some things that you need to do. The sale of your business will most likely be based on what we call a multiple.
That's a multiple of earnings. That multiple could be 10x, or even a 20x if you're really good. But the X factor is what's going to be the key. That X factor or that X multiple is going to be dependent on a lot of factors in your business. For instance, are you one location or multiple locations? Multiple locations gives you a diversification that if you lose one, you still have others.
The business doesn't go away. Is your business based on a recurring revenue stream or is it on one time revenue on whatever project you sell? Recurring revenue will absolutely drive up that X factor. Do you have an exclusivity of product either in your market or in the entire country? Do you have something that nobody else has?
Do you have a verifiable? Large market share or a killer marketing presence. People know who you are. You're a brand. How important are you the owner to the overall day to day operations? Do you have systems, processes? Do you have procedures in place? Do all of your customers, do they know who you are? Do you have a documented SOP, standard operating procedure? Or is the information on how to run your company in your head?
That's the worst place it can be. Do you have a management team in place that can operate the company if you disappeared for a week, a month, three months? One of my favorite ones is, if you stopped answering your phone for two to three weeks, what would happen to your business? Nobody wants to buy a business that has an owner that holds all of the intellectual knowledge.
Nobody wants to buy a business that is at risk of the owner leaving and then the customers following. Your multiple of earnings is greater when the risk of customer flight is lower or a number of locations provide you with diversity. As an owner, you need to be able to walk away if you plan on selling.
You need to be able to walk away, put the company up for sale, leave, And virtually nobody knows you're gone. If you haven't set your business up to do this from the beginning, you have some work to do. And it starts with a delegation plan. If you're planning a sale, it's not, it's time to start thinking longterm.
You need to think less about profit today and more about the exit strategy to get a higher multiple later. Here's the secret. If you are in this phase, this delegation phase, and you haven't built your business correctly from the start. By the way, your business will probably take a profitability hit short term in order for you to grow long term.
You need to stop thinking about today and start focusing on where you want to go and how you're going to get there. We call this reverse engineering. It's one of the tactical coaching tracks we do in my coaching programs. You have to understand that if you implement this, your business will probably make less money than it has been for a period of time.
Could be a short period of time. Could be a long period of time. That depends on how well you implement the strategy. Quite frankly, how willing you are to give up control, how willing you are to take a a profit hit. We generally implement this delegation phase into five areas. The first one being technical.
The technical phase is, are you actually doing the work of the company? If you're a plumber, are you, are you plumbing? If you're in the software business, are you writing the software? Whatever it is your business does, you need to stop doing. You need to hire people to do that. The second is the administrative phase.
One of the first things you should hire as an executive is administrative assistant. You need somebody to take care of the 15 to 20 an hour tasks that you're doing now that you shouldn't be doing. Because it's not where your time is best spent. The third phase is marketing. Are you out there doing the marketing?
You need to hire somebody to do that. Are you out there doing the sales? That's the fourth one. If you're the primary salesperson or in any capacity in sales in your organization, it's time to outsource that. Once again, nobody wants to buy your business if you're the main salesperson. And finally, the last thing you delegate is the executive phase.
You need to someone to replace you. You need to stop. Actually working, you need to get an assistant to handle your daily busy work tasks. Stop the marketing. Stop running sales. You need to hire all those positions. And then you need to hire a good COO, a chief operating officer. You need somebody to run the people, the process, and the procedures.
And then just report back to you for the 30, 000 foot oversight command and control. That's all you need to do. I know this is a very simplistic view. There are challenges and pitfalls to each one of those. We also know that your productivity will initially probably go down. People will not do the job as good as you did.
They will not do it as fast as you. It will cost you time, frustration, and money. Well, you get those people trained, but if you push through the implementation of these five areas, you will find that you can scale faster. You can scale bigger. You will generate more long term profits. And that X multiple we talked about that X factor will be worth a whole lot more.
And here's my shameless plug. If you need or want help implementing these strategies, that is exactly what I do in my tactical coaching programs. We teach people the five areas of delegation. We pull them out of their company. We show them how to scale. This topic is also by the way, what my new book is going to be all about the invisible multimillionaire.
We will cover in depth, how to scale, set yourself up, delegate, prepare for an exit, and eventually. To create generational wealth. We'll show you how to do that in a quicker timeframe than most people know how to do. This book's going to be written both from my point of view as someone who has built and sold multiple companies in multiple industries, as well as from my friend, Jeff's point of view.
Jeff is an M and a guy he's done, I don't know, over 25 deals in the eight to nine figure acquisition range. In the last four or five years, he's out there selling people's companies for 10, 20, 50, a hundred million dollars. People are creating generational wealth. He knows how to set these deals up. He does this for private equity and for individual business owners, the invisible multimillionaire will be.
My next wall street journal bestseller. So that's it for today. And by the way, I mentioned at the beginning, you could get that free masterclass it's based on my book. You got to go to the website, Brianwillmedia. com go to the coaching and training page, go down to the online training, go to the sales and negotiation class, click on it.
And where it says coupon code, enter the word partner. P A R T N E R, partner. Enter the word partner, you'll get the class for free. Take it, drop me a message, let me know what you think. All of my books, my podcasts, my blogs, my newsletter, my training programs, everything is on the website, brianwillmedia.
com And finally, as I end all my shows Remember, you have to be in the game to win the game.