The Smart and Savvy Exit - The Automatic Customer- Ellen McIlhenny

Ellen McIlhenny - “The Smart and Savvy Business Exit”
 
PROFIT RADIO..."Grow With Us"
Introduction
Hi, I am Ellen McIlhenny, the Host of “The Smart and Savvy Business Exit”.

 I hope everyone had a wonderful Thanksgiving.  I’m sure most had a scaled down Thanksgiving but it is our hope that 2021 will bring back at least some normalcy.

Again, we ask that everyone to think seriously about giving major support to local businesses during the holiday. Let’s help our friends in our local communities.
 
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​Show Objectives
As a Fractional CFO I work with business owners every day. I work with a wide variety anywhere from a few hundred thousand in annual revenue to tens of millions in revenue. These businesses are in many different stages, but one thing is universal in my dialogue with them. What are your exit plans? And have you started thinking about and more importantly preparing for your ultimate exit.  And yes, everyone will eventually exit…one way or another.

Today we will talk about one of the value drivers that was outlined in John Warrillow’s book Built to Sell

We will be talking about recurring revenue which was the topic of his book The Automatic Customer 
 
https://www.ibgr.network/show_notes/the-smart-and-savvy-exit-the-exit-plan-ellen-mcilhenny

Or you can listen to last week’s show on episodes 22 through 25 
https://studio.podcast.co/ibgr/future-financial-confidence-with-ellen-mcilhenny/episodes

Key Issues - ​Owner/Manager Perspective:
The Hierarchy of recurring revenue

• No. 6: Consumables (e.g. shampoo, toothpaste)
• No. 5: Sunk-money consumables (e.g. razor blades)
• No. 4: Renewable subscriptions (e.g. magazines)
• No. 3: Sunk-money renewable subscriptions (e.g. the Bloomberg Terminal)
• No. 2: Automatic-renewal subscriptions (e.g. document storage)
• No. 1: Contracts (e.g. wireless phones)

What You Need to Know
The nine Keys covered in the book

​What You Need to Do​
A look at the Value Builders System created by John Warrillow
 
 Written by Ellen McIlhenny - CFO Plus Services - www.cfoplusservices.com

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