Webinar Replay: 7 Questions You Need To Answer Before You Restart Your Business
Thursday, May 28, 2020 (1:00 pm Pacific Time)
Webinar Transcript:
Unknown Speaker 0:36
Hey folks, this is Mark Mraz we’ll be starting, we’ll be getting started here in a few minutes.

Unknown Speaker 1:00

Unknown Speaker 1:00
Looking at my clock here will give folks another minute or two to join and then we’ll get started.

Unknown Speaker 2:51
Michelle, Thanks all for joining

Unknown Speaker 3:05
Okay, I haven’t so I have a minute after one. So let’s just get started here. I’m gonna stop my video so you guys can see the slides. So my name is Mark Mraz ah, I work with Crossing the Goal Partners and we help retirement-minded Las Vegas business owners, hopefully help them successfully grow a durable business that they can sell for a financial windfall in the future.

Unknown Speaker 3:35
Thanks for joining me today.

Unknown Speaker 3:40
Okay, so this is our agenda. We’ll start with a little introduction and then we’re going to get seven questions that I that that I think people need to know before they restart their business, and then we’ll do a quick wrap up and next steps.

Unknown Speaker 3:57

Unknown Speaker 4:00
So I don’t expect this webinar to go too long. I know I’ve been on webinars, a lot of webinars like all of us probably over the past couple months that have gone an hour plus, I’m guessing this won’t be this will be about 30 minutes, Max. As we go through the seven questions, I will stop for a couple minutes and let you write down an answer. So make sure you’ve got a piece of paper next to you. And then we’ll go as we go through the questions, you can jot down the answers for yourself. Okay, so a little about me. I think most of the folks on the call here know me, but I moved to Las Vegas in 2009. And then in 2016, I moved to downtown Las Vegas. So at the time, I was kind of following the work that Tony Hsieh and Downtown Project were doing to kind of help revitalize the downtown community. What I noticed is that they were investing a lot of money in starting new businesses. What I saw that mic that was missing was there was not much support and mentorship to help those businesses stay up. stay afloat, to grow and survive. So in 2019, I started my practice Crossing the Goal partners after watching my father sell his business, and with the hopes of helping Las Vegas business owners create durable, successful businesses. So about a year ago, I was certified as a value certified Value Builder Advisor. And a few years before that, I completed my graduate school graduate degree from the Graduate School of Management at the University of Dallas. For last 15 years or so, I’ve been helping organizations build valuable companies. So that’s a little about me. So we’ll just jump right into the start here. So we’ve all been hearing in the news lately, a lot about businesses reopening their doors. What I’ve been talking to folks about recently is about this being a perfect time to rethink your business right to reimagine to revision, your budget. This, and you start by answering these seven essential questions to restart and rebuild a business. So we’ll walk through those seven questions today. But first, let’s start with a quick little analogy. So, if your home was in a disaster, you have and have a question answer, right? Would you repeat the same home? Or would you build the home of your dreams? So I asked that both rhetorically and here. I’ve got a little poll, I will let you have an opportunity to answer that question for yourselves. So you’ll see on your screen here, this quick poll, after a storm, would you rebuild what you had, would you build a better would you build a better home or would you just give up homeownership and decide to rent? So I’ll give folks a few minutes here to answer this question. And then I’ll show you the results.

Unknown Speaker 6:55
Okay, great.

Unknown Speaker 6:57
All right. So the results so it looks like everybody He’s here for the right reason, right? You all want to rebuild a better business. Great. So that’s the right answer. Okay, so let’s move from this analogy of home to your business, right? Let’s see. So right now your business might be still being pummeled by the COVID-19 storm. And but what we think this is, what I think and I’ve been working with clients on is this is a perfect time to take a deep breath, rethink what your business could be, rather than just reopening the doors of you know, rebuild and rethink. What do you want to build, right? Do you want to create or build a new business? Or do you want to restart your business creating value, or and building the company that you want to dream that you’ve always dreamed of? Or are you just going to rebuild the same business you had before this storm? So I’ve been working with my business owners to really become value builders, right? So we really work on emphasizing growing value in the company, creating a competitive advantage. So everything on the right hand side here of value builder type owner versus a typical owner. So these are the things that we’re working with our clients now to rebuild their businesses as we move forward. So right now is a great time. Don’t let what we’re what we’re telling folks is Don’t miss this moment. If you have a real opportunity to set sail in a new direction for your business, as opposed to being pushed in a direction that you’ve always gone before, that kind of got you where you are now that you might want to not go to in the future. Okay, so over time, businesses serve a variety of customers with a patchwork of customers with a variety or mishmash of products and services. And that’s normal. But what we know is that business, business buyers have one immutable law of business valuation. And that is that they’re not going to pay for what they can do themselves. So if you’re looking to build a valuable business, this is one of those things you need to keep in mind, right? And business buyers, look to these eight things that really add value to your business, right? distribute your distribution channels, any proprietary technology that you might have, differentiated product or service. So taking a look at you know, what you do different than your competition, things that make your company valuable. So really, our focus again here at Crossing the Goal Partners is to help business owners not just build revenue, but to build value. So let’s go through this typical example. It’s hypothetical, but typically owners value their business based upon on multiple pre tax profits. So in this example, we’ll talk about a $5 million company who has pre tax profits of $800,000. And speaking to others in their industry, they they determined that a company like theirs usually sells for multiple four. So the typical business owner might value their company at $3.2 million. But remembering the immutable law of business valuation, we know that a business buyer, a buyer. When looking at your business, the same business, the same hypothetical business will look at your company by product line or service line. And they might not they might not add or give any value to products or commodities that you sell. So again, things that they can reproduce themselves. So in this example, it’s cheaper for a buyer to compete with you on products A, B and C. And really the only add, give value to your differentiated product be so In this example, what the business owner thought might be a $3.2 million valuation, this buyer only puts an $800,000 valuation on that business. So one of the things I talked to people about is really changing their focus from the seller to the buyer, right? So your business is really, you need to remember that your business is really worth

Unknown Speaker 11:20
what somebody’s willing to pay for it.

Unknown Speaker 11:23
So it’s really about changing your perspective.

Unknown Speaker 11:27
So remembering that right, so here’s

Unknown Speaker 11:29
an example of Josh Dick. Some of you may have heard me talk about this gentleman before. He’s the CEO of Urnex and back in 2003. He was, he was going through some struggling times in this business. And he basically applied these seven questions to his business and after reviewing his company, he decided to cut six of seven product lines and focus on the one that his customers valued the most; being the best at cleaning commercial coffee makers. over a two year period, he was able to grow his business from one to $5 million by reassessing what he did and who he did it for and being the best at it.

Unknown Speaker 12:11

Unknown Speaker 12:14
So now is a perfect time to do in your business what Josh did in his business, right? Look at your business, prune the products and services that might be taking resources from your business and not adding really any value. And refocus on providing your customers with things that they want and things that offer value to a potential buyer. So to start, you have seven questions that you need to address.

Unknown Speaker 12:40
So we’ll go through those seven questions.

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One by one and again, I’ll give you a few minutes between each question to jot down an answer.

Unknown Speaker 12:48
Okay, so let’s get started here.

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Question number one.

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Really, what’s the problem your business is trying to solve? Right? What is it that you do when you look out at it the landscape? What problem Does your company solve the best?

Unknown Speaker 13:05
I’ll give you few minutes here and answer that question.

Unknown Speaker 13:15
Okay, question we’ll move on to question number two. And that is, who is affected by this problem that you solve, right? Who’s your ideal customer? Right? We really rethinking how to establish your business in the, in the light of you know, forward momentum, right, really what you want to do to create a better business

Unknown Speaker 13:33
than you had before.

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So what’s the problem you solve? And who do you solve it for? Who’s your ideal

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Jot that down real quick and move on to question number three.

Unknown Speaker 13:49
Question number three.

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What does your company do to solve that problem? Right? So what’s the problem you solve? Who do you solve it for? And what

Unknown Speaker 13:57
do you do to solve it?

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Jot down aquick answer to that.

Unknown Speaker 14:07
Question number four.

Unknown Speaker 14:09
So after you’ve defined what you do, who you do it for, and what problem it is that you solve, then you want to really take a look at what’s your competitive advantage, what sets you apart from the competition, right?

Unknown Speaker 14:18
What really adds value to your business?

Unknown Speaker 14:21
What would a buyer consider valuable in your business? So again, rethinking what you do, making sure you do the right things for the right people the right way, and do it better than anybody else? Take a second to answer that question.

Unknown Speaker 14:40
Okay, we’ll move on to question number five.

Unknown Speaker 14:44
So once you’ve got those answered,

Unknown Speaker 14:47
so then the question becomes, what does the world look like once you’ve solved that problem, right? So you know that there’s a problem, you know, who you’re solving it for, you know, what you do to solve that problem? So you decide so the question, you know, you know why you’re better Anything everybody else your competitive advantage? And Question number five is what does the world look like after you solve the problem? And then Question number six is, how do you know when you’ve solved the problem? Right? What metrics and

Unknown Speaker 15:10
what baselines do you use to solve that problem?

Unknown Speaker 15:16
Okay, so the last question is really the moneymaker. Right? So how do you make money doing that? Right? What’s your business model? Are you an RFP based company? Or do you have a subscription based business model? And each of those different business models, you know, have different value to a potential buyer. So I know I give you a couple minutes, a couple seconds after each question to answer those, but we’ll do a quick recap here. Here’s a quick recap of the seven questions. I’ll leave that up on the screen for a second here for you take a look at jot down any answers that you didn’t get to finish, and then we’ll move on. So just as a quick note, We were recording this webinar and I’ll send it out after the you’ll all get a copy of it along with the little one page worksheet of the seven questions that you can answer them on your own time. So that’s really the seven. That’s really what I wanted to go through. It was right is, you know, just to quickly recapping what we talked about, right? We’ve all just we all decided that we wanted to build a better business after, you know, we wanted to build a better home after the storm. So our businesses are all going through storms right now, right? So we all decided we want to build a better business and move forward, right?

Unknown Speaker 16:35
So we to really get

Unknown Speaker 16:37
that going. We talked about the example of Josh Dick, how he cuts seven of it six of his seven product lines, and really focused on the one problem that he thought that he was best positioned to solve. And he moved his business from $1 million business to a $5 million business in just two years. So we talked about The eight things that buyers value and we talked a little about how a buyer would value your business, right based upon the differentiated product line. And changing, you know your perspective from the seller to a buyers perspective, and we went through these seven questions. Okay, so that’s our quick recap there. And really, we’ve come to the end. So I thought it wouldn’t be too long. We wouldn’t be on this webinar for hours. But I did want to just tell you a little about Crossing the Goal Partners again, we went through these seven questions. And you know what, after we kind of looked through those, we put together this little quick slide here. So Crossing the Goal partners works with retirement-minded, Las Vegas business owners to help build a durable, valuable asset that you can sell for a premium. And the vision for our company is basically two-fold, right support you You’re the business owner in creating a legacy for you, your family and your community. And to give you the option You desire in and for your business.

Unknown Speaker 18:06

Unknown Speaker 18:11
So if you’re interested in learning a little bit more about Crossing the Goal Partners and how we might be able to help you build a more durable, valuable business, just in the QA field,

Unknown Speaker 18:24
just type the word “durable”, and we’ll be in touch with you.

Unknown Speaker 18:32
Okay, let me take a look. See if there are any. We’ll stop now for some q&a. If anybody has any questions, just put them in the q&a board. I’m looking to see if there any questions.

Unknown Speaker 18:44
All right, I don’t see any coming in.

Unknown Speaker 18:47
Again, I don’t want to keep folks here. So we went through the seven questions.

Unknown Speaker 18:53
And I just want to thank you for joining me today.

Unknown Speaker 18:56
So that’s it. Have a great day, folks.