Question for MJ (and anyone else running an info biz)

[EnglandBorn]

I've been curious for a little while - how does one liquidate an info business when one is the brand?

MJ - if this (TMF book and forum) was your fastlane business how would you exit this given that your name is the brand? Without you and your expertise it wouldn't be worth much no?

Would you focus on bringing in other experts to take your place in the years leading up to your exit?

The reason I ask is I've got a business in mind which is information based on my expertise at first but I plan to bring other experts into it as well.

After reading 7 Habits, I've very much of the view that you should begin with the end in mind, so I am hesistant to follow through on this if is going to leave me unable to exit it in the future.

I see people like Pat Flynn and other info based businesses and it seems to me that they have created a well paying job for themselves.

I read a while ago on this forum that Frank from "nomorecoldcalling" is in this sticky situation because the business is based around him and his expertise.

Would love to hear how you MJ would hypothetically plan to exit TMF and forum - is it possible in its current format or would you need to start bringing in other experts to take your place?

And anyone else who has already done this or is in the process of doing so - I'd love to hear your thoughts too.

 

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[adoredunchin]

What color will your ferrari be?

 

[Formless]

@kaloenneli

Not quite. A lot can be learned from this once its answered. Even if OP never gets to directly take the advice.

The color of a ferrari has no value, insights on exit strategies do.

 

[adoredunchin]

@kaloenneli
Not quite. A lot can be learned from this once its answered. Even if OP never gets to directly take the advice.
The color of a ferrari has no value, insights on exit strategies do.

True but there must be a reason why noone with a working business has asked this question before.
Advice makes only sense when you actually apply it. If you don't why even asking in the first place.

And OP said Quote:"The reason I ask is I've got a business in mind"
The Question is 100% legit but the timing isn't in his case.

 

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[EnglandBorn]

True but there must be a reason why noone with a working business has asked this question before.
Advice makes only sense when you actually apply it. If you don't why even asking in the first place.

And OP said Quote:"The reason I ask is I've got a business in mind"
The Question is 100% legit but the timing isn't in his case.

Thanks for the replies guys.

I'm currently working on one business for which I have 1 paying customer who is my "beta". It's software so it's going to take a little bit of time to get going.

I'm asking about info business because this is going to bring in profit in a quicker timeframe and fund development costs for the software business.

However, I do want to know how I could set it up to be liquidated in the future. The last thing I want is to have to just drop it and let it die a death in the future because I can't sell it. That would suck for the customers.

Using the phrase "in mind" was probably not the best phrasing:

I've actually spent this morning creating the content and sales funnels for this info business, so I'm an action taker and I will use the information people give to me.

Sorry I wasn't more clear.

 

[healthstatus]

This doesn't exactly answer your question but Jeff Walker has the Product Launch Formula, which he has been successful with for years. I know at one point he had a program where you could become a "Jeff Walker Certified" Launch Manager. So franchising yourself is not a unique idea, also Dan Kennedy has a partner that runs most of his business and Dan makes occasional speaking stops, and photo ops, so that is keeping his brand alive. But if you are the brand, it is tough to sell out at the end.

True but there must be a reason why noone with a working business has asked this question before.

The best entrepreneurs have their exit strategy mapped out before they start their business.

 

[ZCP]

Start a business without an exit strategy........... Not a good idea.

 

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[NicoleMarie]

I'm no expert but the business can still be automated to a point. Some require more "upkeep" than others. For this forum, he has the money making part automated since it's a subscription service that people can sign up for. He also uses "staff" to automate things like moderation/question answering. On top of that, he offers ad space which is also passive income (more of a side income though). He can't really be replaced, but that's ok because this isn't his big main business and he enjoys "working" on here (from what I can tell). If he ever wanted to exit, I'd assume he'd maybe drop the price a little (since we wouldn't be getting to talk to him anymore) or trust that his staff, videos he already made, and books he already wrote could take the place of him, just my guess.

Now his book on the other hand, is a product. He took part of "him" (his knowledge) and put it into something that's separate of his time and capable of being sold repeatedly and passively.

 

[EnglandBorn]

Thanks for the responses so far.

As I've been putting together the site for this info business today I'm seeing that I'm just going to use my expertise as the initial product to get the ball rolling and then essentially replace myself with other experts in the arena and divert the attention from myself to them.

Basically become a publisher of info products in this space as opposed to be the product creator. Seems to be the way forward and means I can liquidate it in the future if it gets big.

 

[MJ DeMarco]

how does one liquidate an info business when one is the brand?

One usually doesn't unless there are divestable assets within the brand.

MJ - if this (TMF book and forum) was your fastlane business how would you exit this given that your name is the brand?

First, your premise is incorrect.

I did not write TMF or start a forum to create a Fastlane business. I'm retired. This *business* exists to spread my message. While it can be Fastlane, my goal in it's creation was not to either "be Fastlane" or sell it in a liquidation event. Had I not considered myself retired and wanted to create another Fastlane business, starting a forum or creating a personal brand would not be on my list of considerations.

 

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[MJ DeMarco]

f he ever wanted to exit, I'd assume he'd maybe drop the price a little (since we wouldn't be getting to talk to him anymore) or trust that his staff, videos he already made, and books he already wrote could take the place of him, just my guess.

If I exited, the asset would probably be the forum, it's content, and its income. My staying aboard as a contributor would be a likely term.

 

[EnglandBorn]

Thanks for the reply MJ, I really appreciate it.

First, your premise is incorrect.

I did not write TMF or start a forum to create a Fastlane business. I'm retired. This *business* exists to spread my message. While it can be Fastlane, my goal in it's creation was not to either "be Fastlane" or sell it in a liquidation event. Had I not considered myself retired and wanted to create another Fastlane business, starting a forum or creating a personal brand would not be on my list of considerations.

Yep, sorry should have highlighted the "IF". Fully aware this is a personal project.

I guess this re-inforces the necessity to be a publisher of others in the information business otherwise you'd find it hard to offload the business in the future.

 

[MJ DeMarco]

I guess this re-inforces the necessity to be a publisher of others in the information business otherwise you'd find it hard to offload the business in the future.

A cash flow always can be sold. If the business is PC (product-centered) the cash-flow can be continuous.

 

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[Maxjohan]

True but there must be a reason why noone with a working business has asked this question before.
Advice makes only sense when you actually apply it. If you don't why even asking in the first place.

And OP said Quote:"The reason I ask is I've got a business in mind"
The Question is 100% legit but the timing isn't in his case.

Well. I know what you mean. Action "faking", right? And maybe day dreaming? But it could also be a legit question with some power behind. It's like saying: How do I learn how to swim?
Answer: Because you are not in the water right now, this is not a legit question.

Mostly, we ask questions to learn things. Most of the time on this forum. We can't know if the person asking, is going to take action or not. But that's just my opinion.

 

[EnglandBorn]

Fair enough, I take it my gut feeling about replacing myself as the expert in the business with other experts and their products that I publish is preferable to just keeping the products centered around me? Would lead to an easier and more profitable sell off in the future (if it came to that)

A cash flow always can be sold. If the business is PC (product-centered) the cash-flow can be continuous.

 

[MJ DeMarco]

I take it my gut feeling about replacing myself as the expert in the business with other experts and their products that I publish is preferable to just keeping the products centered around me?

Robert Kiyosaki runs a seminar empire based on his Rich Dad brand. Don't think he attends or teaches any of them.

 

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[EnglandBorn]

Oh wow, did not know that.

Fair enough, I can offload an info business in a variety of ways in the future if needs be.

Back to work I go!

Robert Kiyosaki runs a seminar empire based on his Rich Dad brand. Don't think he attends or teaches any of them.

 

[Boo Blizzi]

Robert Kiyosaki runs a seminar empire based on his Rich Dad brand. Don't think he attends or teaches any of them.

Two other examples of this is Zig Ziglar and Earl Nightingale. They both died, but there are still information businesses centered around their teachings and methodologies.

Also, one of the angles all the big gurus were pushing last year was "celebrity authority" positioning. The gist of it is, once you become a known authority in a particular niche, its easier to make sales and connect with other credible people to boost your status and trustworthiness, which leads to even more easy sales.

Once you hit that level, your brand will automatically be valuable to your market.

The ultimate examples are Oprah and Martha Stuart.

 

[Kyle Tully]

Info product businesses where you are the guru and people are buying YOU can be a little tricky to sell.

But with some planning and strategy it's not that hard... you just might not get as big a multiple as with some other business models.

The big example that comes to mind is Dan Kennedy's GKIC.

Dan sold that business 10 years ago, and I believe it's been sold again to a big investment company, but Dan still creates content and acts as the main face. He began introducing other faces to the business via his newsletter and other partnerships over a period of many years. The casual observer would still assume Dan is running the show.

 

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[randomnumber314]

Start a business without an exit strategy........... Not a good idea.

Not sure I agree with this. If you're building something, why not build it for sale? In fact Zen recommends adding an exit strategy to a business plan (link)

 

[ZCP]

Not sure I agree with this. If you're building something, why not build it for sale? In fact Zen recommends adding an exit strategy to a business plan (link)

Exactly. I should have added a question mark to the first part......

You should plan an exit strategy in early ........