They Got Acquired - Think like a buyer

March 7, 2023
​Read on web​

Entrepreneurs often offer a free version of their product as a way of getting users into their ecosystem.

But software developer Dan Cooperstock took that to another level: he gave his product away for free for eight years before charging for it.

That’s because when he first built Software4Nonprofits in 1999, he didn’t intend for it to be a business.

While volunteering at his Quaker meeting, Cooperstock noticed that the software the organization was using to track its finances had some major problems.

“I could see that the thing we’d bought before was not designed by a professional programmer,” he said in a podcast interview with Quiet Light, the brokerage that eventually helped him sell the business.

Cooperstock built a new solution that helps small churches, charities and other non-profits with bookkeeping, including tracking donations. After allowing users to access it for free for years, in 2007 he gave users the option to pay a small annual fee to access customer support and upgrades. “And a lot of them did,” he said, “very, very quickly.”

This transition allowed Cooperstock to make Software4Nonprofits his full-time job.

He ran the business solo, including providing customer support for thousands of users, until 2014, when he hired his first employee. Eventually the company grew to three employees and 10,000 users, half free and half paid.

Here's how he ended up with a mid-6-figure sale:

​This accidental SaaS entrepreneur pulled off a graceful exit from a lifestyle business​

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Behind the business

This week a friend asked me, have you ever worked with a business coach?

I've worked with many! And I wouldn't be where I am now without them.

Here's my biggest tip for finding the right business coach: Push yourself to get specific about what you need help with, and pick someone who's good at that specific part of business.

Don't just look for a business coach. If you need help with operations, pick a coach who's strong at that. Want support as you grow as a manager? Choose a coach who has lots of experience leading teams and helping others lead. And so on.

Here are the coaches I've worked with over the last decade and recommend, plus a couple of mastermind programs with a coaching component:

✋ Systemizing my first company: Charlie Gilkey​

Charlie helped me systemize my first business, a boutique content marketing agency, which was one of the reasons I ended up with an acqui-hire opportunity. He was my first introduction to Built to Sell, the bible for getting your business to run without you.

✋ Managing a team: Bev Jones​

She was my tough-love shoulder to lean on during our high-growth years at The Penny Hoarder, when I was trying to be a decent leader with two toddlers at home and very little sleep. Bev helped me show up as the person I wanted to be for tough management conversations.

✋ Navigating a career transition: Shawna Burkhart​

Shawna was my rock during a transition period, when I was moving away from a high-demand job to figuring out what kind of business I wanted to build next. Covid was in there too, so there was a lot of grieving the work I wanted to do but couldn't get to with two young children at home.

✋ Starting a new business: Christine Carrillo​

She focuses on making meaningful progress in fewer work hours, which called to me as I launched They Got Acquired. Christine helped me see challenges from a new perspective and make smart choices about how to spend my limited energy.

✋ Strategic growth: Michelle Warner​

Michelle's the coach I work with now, fulfilling my need as a solo founder to talk things out with someone who cares. She's really more of a tactical advisor than coach; she gets her hands dirty with me in the business, which is everything I need right now.

✋ Balancing work and family: Wise Women's Council​

It's a leadership incubator for women with families that includes a small-group coaching option. This group of women, led by coach Sarah Peck, pretty much kept me sane during the pandemic.

✋ Scaling a business: Hampton​

I joined this new mastermind recently, and it includes small-group coaching with facilitator Angela Parker. It's for founders of companies bringing in millions of dollars, so I often feel like an imposter there, but that's how we level up, right? (And that's an affiliate link because they are a They Got Acquired sponsor.)

Next time you want to invest in a business coach, you now have a starting point.

See you next time,

Lexi Grant
Founder & CEO
​They Got Acquired​
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🙌 How we can help

Here's what we offer for founders looking to sell in the next year:

- Help choosing an advisor or broker you can trust

- M&A coaching if you have a potential buyer or want to approach buyers on your own

- A sounding board (free call) if you're not sure where to start

- Reports full of case studies and data about other founders who sold

- Posts covering the basics of how to sell your business​

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