Freedom Factory's Podcast

Robert Hirsch from Freedom Factory discusses 'What Does Freedom Mean to me to Sell my Business'. Listen to the podcast, watch the video, or read the transcript below. Additional Videos From Freedom Factory How are Brokers Different from Investment Bankers? Don't Make The Single Biggest Mistake When Selling Your Business Transcript of podcast Hey, it's Robert Hirsch from Freedom Factory, and I want to talk to you about our first core value here, which is freedom and what it means to me and the evolution of the definition of freedom. So when I started as an entrepreneur 25 years ago, my definition of freedom was being able to do what you want, when you want, with whom you want, as often as you want. And that led to a really fun twenties in San Francisco and in Colorado. It was spectacular. I owned my time and it gave me the ability to break the time for money equation, right? Meaning when my buddies were at work from nine to six, I could create my own schedule. And as long as I worked hard and worked well, and effectively, I owned my time, which is very important. That's how I used to define freedom. Now these days, my view on it has evolved. Freedom isn't about drifting from thing to thing, and it's not about being amorphous and it's not as hedonistic as it was in my twenties. It's where passion and purpose aligned, meaning what do I want to do with the rest of my productive life? It was six years ago, I was diagnosed with a rare form of leukemia, which was particularly brutal, and I went through 22 injections of, chemotherapy. And when I got done with that, which I am super grateful for and super healthy now, I asked myself a question. I said, what do I want to do with the rest of my productive life? And I knew I wanted my passion and my purpose really to make the largest impact and how do I make it count, so to speak. And so it didn't become about this hedonistic freedom. It became about what do I have to do? What can I not do? What do I have to attach my yoke to? And so I started off with the who and the who is my fellow entrepreneurs and what do I want to do? I want to help them with the most important deal of their life. I want to affect their lives, their family's lives, or kids' family's lives. I want to help the helpers. For me, my business has always been about effecting social change and leaving the world a better place. And when I found it, and if you're an entrepreneur who takes our destiny in your own hands, I'd love to help. So if you have questions about what is it that, you have to do? What do you need to attach your yoke to? How do I sell my business? How do I buy a business? We'd love to help. I'm Robert here at Freedom Factory. Give us a call and let's talk about freedom soon. Thank you so much for watching. Please like and subscribe.   Contact Freedom Factory Freedom Factory 5500 Greenwood Plaza Blvd., Ste 230 Greenwood Village, CO 80111 Phone: 844-MAX-VALUE (844-629-8258) https://www.freedomfactory.com/ https://g.page/freedom-factory-denver Also, Follow Freedom Factory here  Best Business Brokers - video portfolio Follow us on Twitter Find us on Facebook.com Connect on Linkedin Youtube Channel Available on Youtube: Managing Partners Learn more about the managing partners, Tyler Tysdal, and Robert Hirsch. https://tylertysdal.com/about

Robert Hirsch from Freedom Factory, discusses the commonly asked question, "What is my Business Worth?", frequently asked by business owners, and people who want to start a business. Listen to the podcast, watch the video, or read the transcript below. What is My Business Worth? Additional Videos From Freedom Factory What is the Most Undervalued Asset Class? Don't Make The Single Biggest Mistake When Selling Your Business Connect with Managing Partner Tyler Tysdal on Linkedin Transcript - What is My Business Worth? What is My Business Worth? Hi, Robert Hirsch from Freedom Factory here. One of the questions that we get most often is, what is my business worth? If you're like me, most entrepreneurs are so interested in growing their business that what it's worth doesn't really come up that often. I always focus on growing sales, and I figure if I grow sales, and I run it efficiently, the business is going to get better and it's going to be worth more. In general, that's right. But it doesn't answer the question of what it's worth. Most entrepreneurs say, okay, where do I begin? When I think of where do I begin, I always think of earnings. A lot of people talk about EBITDA, which is for taxes, and that can be adjusted into the seller's discretionary cash flow. But you figure out how much your businesses is worth based upon how much it earns., and it depends. There's a lot of factors, what industry are you in, how long has it been around? Do you have a customer concentration issue? What that means is, do you get 80% of your sales from Walmart, or do you get no more than 20% from any one customer? There's a lot of intangibles that go into it. BUt if you have a smaller business, let's call it a million in earnings. In general, it's worth roughly three to five times earnings. Now, that is super rough, and it gives you just kind of a thumbnail that you can use. And of course, we can answer it in more detail when we look at it, but what that means is, let's say you have a customer concentration issue, let's say you have, whatever it may be, you have some, you have some competitors that are taking business away from you aggressively, you're probably going to be on the bottom end of that. Now, if you have some intellectual property that's defensible, or if you’ve been around for an awful long time, or if you have some sustainable, competitive advantage, the way I like to think of it is how big is the moat around the business or how big is the moat protecting you? Then you're going to be on the upper side of that. So there's always a range, and the intangibles really take you up and down that range. Now, a big fear that a lot of entrepreneurs have is, what if I undervalue my business when I go to sell it and this is my largest asset? For a lot of people, they say the home is the largest purchase you're going to make. Now, if you're an entrepreneur like me. That's not exactly true. It's your business and buying your business and selling your business, and you're trying to think specifically, Hey, how do I not leave money on the table. And conversely, you don't want to overprice it and get people not interested. Getting to a really good market value is very important. It's essentially, how do you put the right team together and make sure that you're pricing it according to market conditions. There's a lot of intangibles that happen. For example, let's say the tax environment's going to change. Maybe we're going to have a new president this year, or maybe we're going to have some tax reform going through that's going to affect long-term capital gains. Well, that might make you want to close before the end of the year. And so sometimes when we have those artificial, either floors or ceilings, they really affect our market timing. So we want to stay pretty focused on that. But in general, to me, there's appraisers and appraisers are really good for estate sales, for things where nobody's running it, but the problem with appraisal value, especially in small business, is nobody's willing to write a check for that. So if an appraiser says, your business that makes $1 million is worth 5 million, and no one's willing to write a check for that, it doesn't do you a lot of good. So, for me, I buy and sell businesses full time. It's all I do. I would trust a full time business broker that all they do is focus on comparable sales in the last six months with businesses similar to yours. And I would really focus on market data because almost nowhere else is market pricing more important than small business. The importance of a broker is pretty significant here because let's say you're selling your house and let's say you have the best broker in your area as opposed to an average broker. Well, he might be able to get you five or 10% more. And the reality is the appraiser's going to come in and they're going to give you an appraisal value and you're not going to be able to sell it for more. So in some ways, real estate is more of a commodity, but businesses, for example, you can change for EBITDA to seller's discretionary cash flow. If you have a range like we used before from three to five times earnings. If you can get a broker that gets you away from three and gets you towards five and your business makes $1 million, you just made a million and a half more with effective 23% tax rate. That's awesome. That's $1 million more in your pocket. Or for example, sometimes I've worked with businesses that were in the wrong industry classification and maybe they started off there, but maybe they've evolved as your business has grown over the last five or 10 years to a totally different industry classification. So it's taking it to market, putting a story together, maximizing the sale of your business. Those are the things that are really important when you think about selling it. I hope this is helpful for getting what it's worth. If you want to call us over at Freedom Factory or if we can give you any help whatsoever, we'd love to do it. Please hit like and subscribe. Thanks for watching and we'll see you soon. Contact Freedom Factory Freedom Factory 5500 Greenwood Plaza Blvd., Ste 230 Greenwood Village, CO 80111 Phone: 844-MAX-VALUE (844-629-8258) https://www.freedomfactory.com https://g.page/freedom-factory-denver Also, Follow Freedom Factory here  Best Business Brokers - video portfolio Follow us on Twitter Find us on Facebook.com Connect on Linkedin Youtube Channel What is My Business Worth is Available on Youtube Managing Partners at Freedom Factory Robert Hirsch and Tyler Tysdal

Today's episode of the podcast, Robert Hirsch from Freedom Factory, discusses What is Entrepreneurial Freedom?, and people who want to start a business. Listen to the podcast, watch the video, or read the transcript below. What is Entrepreneurial Freedom? Additional Videos From Freedom Factory How are Brokers Different from Investment Bankers? When is the Right Time to Sell My Business? Transcript - What is Entrepreneurial Freedom? What is Entrepreneurial Freedom? What does it mean? Hi guys. Robert Hirsch from Freedom Factory. And I want to talk to you about something really important and specifically what is freedom? And people talk about freedom all the time. It's our core value. It's in our company name. It's in our intro it's, or outro, it's our, it's our number one top of the list core value and freedom is one of those things that means different things to different people. So I wanted to define it at least as we see it for our fellow entrepreneurs. And so my short tried answer is freedom is being able to do what you want, with who you want, as often as you want. And that's only partially true. But what freedom really is, is being able to make a choice every morning when you wake up, being able to be on point and on purpose, where purpose and passion really come together and understanding what that looks like. A lot of people think that freedom, they say, well, Robert, are you free? And I certainly defined myself as a free and sovereign man. They say, well, why are you doing Freedom Factory? Why did you do all these brokerages? Why are you doing the TV show on A&E and history? What's going on? And I think I define freedom differently than other people. Some people that ask that question, they think that freedom means doing nothing. And the reality is, I'm up at my mountain house and it sure is beautiful and I love to come up here to get away and go fishing, but I couldn't do every day. I would be bored. And I would feel like if Robert fell in the forest, is it going to make a sound? It's not what really drives me. I love to work. So when people think about freedom, they think it's disconnecting from everything that they love so that it doesn't matter anymore. And in fact, I think it's just the opposite. So when I think of freedom, I think of it. What is it that I have to do? What is it that I cannot do? What drives me? If you think about it like an oxen, right? An oxygen driving a cart, pulling a cart, it's got this big yoke over its shoulders and people think freedom. They just want to get all the yolks off of them. They want to fire their boss and they want to fire their customers and they wanted to do this. And that's almost the opposite of what I see freedom as. What I see freedom as is, what do I have to do. What do I want to do with the rest of my productive life? What can I not do? What am I going to attach my yoke to? And so many entrepreneurs, they would come to me for consulting and to sell their business and they'd say, I have no idea how to do it. For me, it came down to who's my tribe? Well, it's people like us. It's the entrepreneurs in the world, and what can I do for them? I can help them stick the landing and put resources and time and money in their pocket, and change not only their family and their own destiny, but I can allow them to build what it is that they find most important. As entrepreneurs, we're the builders and what is it that we need to do? And that to me is freedom. It's not how do I free myself of everything and just float alone in the ether. It's how am I free to wake up and help my tribe every day? Now, if you have any questions on this or anything else, why don't you give us a call at Freedom Factory. And thank you so much for spending your valuable time with me. Please hit like and subscribe. I'm Robert Hirsch. We'll see you soon.   Contact Freedom Factory Freedom Factory 5500 Greenwood Plaza Blvd., Ste 230 Greenwood Village, CO 80111 Phone: 844-MAX-VALUE (844-629-8258) https://www.freedomfactory.com https://g.page/freedom-factory-denver Also Follow Freedom Factory here  https://vimeopro.com/freedomfactory/freedom-factory http://freedomfactory.libsyn.com https://twitter.com/FreedomFactory7 https://www.facebook.com/Freedom-Factory-112201923642080 https://vimeo.com/freedomfactory https://www.linkedin.com/company/freedomfactory Available to watch on Youtube Freedom Factory is a Nationwide Business Broker in Denver, Colorado Managing partners include Tyler Tysdal and Robert Hirsch

Robert Hirsch from Freedom Factory, asks, What is Stupid Human Trick? Entrepreneurs all have several skills but they need to focus their time on the one skill that makes them all of their money. Listen to the podcast, watch the video, or read the transcript below. Additional Videos From Freedom Factory How do I sell my business? When is the right time to sell your business? Transcript for podcast Hi, Robert Hirsch from Freedom Factory, and I want to talk to you about something that has really allowed me to bend time and has really allowed me to make a difference when running my companies or my entrepreneurial companies. And I call it the stupid human trick. And I borrowed a bit of that from David Letterman watching his stupid animal tricks growing up. As entrepreneurs, we usually have one thing that we do better than anybody else. And I've mentioned this in a few other videos, but, people really wanted me to spend more time on it and show you exactly what I'm talking about. So, as entrepreneurs, there's two things that really help, mentors and a peer group. I've been a part of the time what was WYO and is now EEO or young entrepreneurs or entrepreneurs organization, a young presidents or YPO and also Tiger 21 but there's great groups to figure out of entrepreneurs and build that peer group and there's great mentors and there's a skill set to being a great mentor and also to being a great mentee, and this all adds into it. And then you can also do a lot of self work and a lot of testing for cognitive or things that you think such as Myers Briggs or an enneagram or cognative, or things that don't change or instincts. The best test I've found for that is Kolbe and Kathy Kolbe has done a great job putting all that together. And, and what's different about a cognative as opposed to a cognitive is it doesn't change if you take it, whether you're seven, 47 or 77 years old. But taking those tests, understanding what you're your best self is, and also getting an understanding of your shadow self or your stress self, and understand the triggers from when you go from one to the other can really help your efficacy, not just as an entrepreneur, but as a leader and a manager. Getting really clear on that can really allow you to bend time. Or as I tell a lot of my consulting clients, I help entrepreneurs bend time. What does that mean? Right? So we're familiar with the 80/ 20 principle - 20% of what you do produces 80% of the results. Well, I think when you become an expert at something, it really turns into 95/5 but the way that works is, so let's say we'll just take 80/20 for simplicity of numbers, and let's say 20% produces 80% of your results. If you can get rid of the other 80% of things occupying your time, maybe things that you're good at but not great at. For me, I'm a great leader but I'm a mediocre manager. I got rid of all my management. I've got great business partners that helped me with that, and I just focus on that 20% and if I could do that 20% five times, which is 100% of my time, I can create 400% of the value. Now, if you subscribe to my line of thinking, which is 95/5 and 5% produces 95% of your value. Well, if you can get rid of the other 95% and just do that 5% 20 times, all of a sudden that's 1900% of your value, or almost 20 times. It's 19 times, almost unbelievable. The sharper you get there, the easier and the more effective you can be. I think about it almost like a video game. Now, when I grew up playing video games, I had an Atari, my controller had one button. I play games against my kids and there's 20 buttons and I'm not very good. So for purposes of this conversation, let's think about it as one or two buttons on the controller. Like a Nintendo, and so you have the stock move, the move that everybody can do, kind of a button, punch or kick or jump. But every character has their special move or what I like to refer to as the B button. This guy breeze fire. This guy does a back flip. This guy does blankety blank. But figuring out your stupid human trick is really figuring out your backflip. And once you figured out your backflip, stop doing everything else and just do your backflip over and over and over again, and you can produce disproportionate results in your company. And that's really how you can shift the line. And instead of growing at 10% or 15%, you're growing at a hundred or 150%. So again, figuring out the one thing that you do better than anyone else provides tons of value to your company. It'll make you a better leader. It'll make you a better entrepreneur. If you have any questions on this, why don't you give us a call it Freedom Factory. Thank you so much for watching. Please like and subscribe and we'll see you soon. Contact Freedom Factory Freedom Factory 5500 Greenwood Plaza Blvd., Ste 230 Greenwood Village, CO 80111 Phone: 844-MAX-VALUE (844-629-8258) https://www.freedomfactory.com https://g.page/freedom-factory-denver Also, Follow Freedom Factory here  Best Business Brokers - video portfolio   Follow us on Twitter Find us on Facebook.com Connect on Linkedin Youtube Channel You an also watch this video on Youtube Managing Partners at Freedom Factory Robert Hirsch and Tyler Tysdal