What's The Formula for Taking a New Business from Inception to Exit?

[stackcash]

I just went on a Shark Tank binge and realized that most of the legitimate pitches/companies on there are following a set of guidelines/ground rules for growing their business. They know valuations, sales/marketing, target demos, pricing models, merchandising, distribution, growth/expansion ideas, partnership goals, the different types of funding (and how to get it), etc...

Maybe I'm showing my colors a little too much here...but I typically make most of my money through SEO and marketing websites. To me, this seems like it's just 1 part of the business cycle. I feel like I'm shooting myself in the foot by not understanding the whole enchilada.

I guess my question here is..... is there a basic "roadmap" for taking a business from A to Z; from inception to exit? Can anyone shed some light on this for me? I'm looking for books, forums, online resources - whatever you got.

I understand, as with any subject, each component can get very, very detailed. I'm really just looking for the broadest overview of all the different components. From there, I can do my own research and get the details I need.

 

[secretagentdad]

You can read / write text walls about it or boil it down.
My tldr is ask yourself the question

How do I create genuine value here?

The vast majority of businesses that succeed, content sites that grow legs ect ect really just do one thing.

Provide genuine value in the most random little obscure niches you can think of.

 

[AntonUber]

Creating value is a very admirable goal but what you as a business need is to learn how to extract the maximum out of value for yourself from the value you produce to your customers. It doesn't really matter if you produce the most value in the world if you can't extract anything out of it for you. This is the problem with serving obscure content niches. You can write all the high quality content you want but if you haven't got anything to sell you really don't have a business - you have a hobby.

So for the steps to take a company from A to Z is to first get a product with market fit meaning you actually have a buying market for it - this is the part where you need to figure out the proper demo for it. Then steadily grow it while building defenses around it to fight off potential or existing competitors - this is where you need to have working marketing strategy and distribution channels in order. When you have traction you need to decide if you want to get investments in - when you have traction investors usually come and find you but you can also go and find them from AngelList or similar service. The cycle how investments goes is that first you get seed money to get started ($5k-$100k), then you get first angel investments ($100k-$1mil) and then you enter Series A (+$1mil). If you need more investment later then it's just Series B, C, etc. However you need to understand that investment is by no means a requirement but you might have a product that needs a lot of customer service staff, marketing etc. that you just simply can't do fast enough by bootstrapping and customer based cashflow. Also realize that the only thing investor cares about is the exit so no matter what they say, their only interest in you and your business is to sell it. Another very handy "feature" of investors is that they actually might have a process and contacts to sell your company. Many entrepreneurs simply don't know how to find potential buyers for their company. But by no means it needs to be your goal to make an exit. When you have a business rolling, you can choose if you continue working on it or if you want to take it to X revenue per year, then sell it or whatever you choose.

Hope this helps

 

[stackcash]

@secretagentdad You're making huge assumptions of my goals here..... I'm looking for resources, not opinions. Thanks though.

@Anton @ Uberaff I think you just tried to fit an entire MBA into two paragraphs! LOL

But, thanks, that was more what I was seeking - a general overview. Know any books that explain each step in a focused manner?

 

[AntonUber]

@Anton @ Uberaff I think you just tried to fit an entire MBA into two paragraphs! LOL

But, thanks, that was more what I was seeking - a general overview. Know any books that explain each step in a focused manner?

The truth is that it is as simple as that. All the jargon of business is there to specify a certain actions/events but you usually want to hire an outside consultant or lawyer to take care of it.

As for the books, only thing you need is http://personalmba.com/

 

[stackcash]

Ah, I've seen this site before. Perfect! Thanks man.

The truth is that it is as simple as that. All the jargon of business is there to specify a certain actions/events but you usually want to hire an outside consultant or lawyer to take care of it.

As for the books, only thing you need is http://personalmba.com/

A

 

[emp]

LOL at the two paragraph thing.

But, it is not wrong... I am actually just reformatting it mostly here:

The steps to take a company from A to Z

Product

First get a product with market fit.
Meaning you actually have a buying market for it.
This is the part where you need to figure out the proper demographic for it.
emp: And what you can do for them --> Value Proposition​

Growth

Steadily grow it while building defenses around it to fight off potential or existing competitors.
emp: This is called a "moat" and is very important. Luxury branding, technological advantages, design are moats. Pricing is NOT a moat. --> economic moat
This is where you need to have working marketing strategy and distribution channels in order.
emp:
Look at strategyzer.com , especially their business model canvas and value propostion canvas. DON't buy the books, just download the PDFs (you can also find them on the net)
Here:
http://www.businessmodelgeneration.com/downloads/business_model_canvas_poster.pdf
http://www.businessmodelgeneration.com/downloads/value_proposition_canvas.pdf
Seriously, work through those two and you should have a good starting point on how to build your biz.​

Investments

When you have traction you need to decide if you want to get investments in - when you have traction investors usually come and find you but you can also go and find them from AngelList or similar service. The cycle how investments goes is that first you get seed money to get started ($5k-$100k), then you get first angel investments ($100k-$1mil) and then you enter Series A (+$1mil). If you need more investment later then it's just Series B, C, etc. However you need to understand that investment is by no means a requirement but you might have a product that needs a lot of customer service staff, marketing etc. that you just simply can't do fast enough by bootstrapping and customer based cashflow. Also realize that the only thing investor cares about is the exit so no matter what they say, their only interest in you and your business is to sell it.​

Selling

Many entrepreneurs simply don't know how to find potential buyers for their company.
This is another very handy "feature" of investors is that they actually might have a process and contacts to sell your company.
But by no means it needs to be your goal to make an exit. When you have a business rolling, you can choose if you continue working on it or if you want to take it to X revenue per year, then sell it or whatever you choose.

::emp::
​