Greg Isenberg - Selling your company

Before we go to this week's post:

I'm co-hosting a free online workshop around finding the right audience/niche and what AI-tools I use to analyze niches (and how to use them). This step of building an internet business is critical. Register here and you'll leave with an actionable session.

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Today, I met an entrepreneur who shared a simple framework for understanding startup exits, sparking a moment of clarity for me.

There are three types of exits:

1. Car Changing Money – Enough to upgrade your ride.
2. House Changing Money – Enough to change your address.
3. Life Changing Money – Enough to redefine your trajectory.

It’s a clever distinction that got me thinking deeper about the paths laid before us as entrepreneurs.

Venture-backed startups—the ones that headline news stories—offer a roughly 20% shot at life-changing money, the kind that alters everything. But what's often glossed over is the silent majority, 80% by count, who after perhaps 7 years, have little to show but modest pay and burgeoning grey hairs. It’s a high-stakes game where the house often wins.

Cash-flowing startups — Initially, your indie cash-flowing products won't turn heads. A product doing $1k a month in MRR might elicit a patronizing "that's cute" from the venture crowd. But this just the seedling from which greater growth can sprout. As you add products, expand from a solopreneur to a multipreneur, these numbers can balloon—$10k, $100k, $1M monthly.

With no venture capitalist, you’re forced to build a fundamentally profitable business. This not only fuels growth but also sweetens the pot at exit. Cash-flowing assets become coveted treasures, especially in bear markets where they're as rare as water in a desert. And with a cleaner cap table, getting these deals done are way more easy.

Contrast this with venture-backed ventures during bear markets, mergers and acquisitions dry up, and without perfect timing, many are left stranded without an exit, just out of reach of the runway.

So, as you plot your course, ask yourself what you’re optimizing for: Is it the car, the house, or life itself? Each choice carries its own set of risks and rewards, each path a different reflection of what success looks like to you.

I’ve come to realize, the less obvious paths often lead to the most interesting destinations.

So, all that to say…

Decide what you’re trying to optimize for.

Car, house, or life-changing money.

Forward this to a friend who might enjoy this post. It's free to forward. Tell them to subscribe to this newsletter here and to subscribe to my YouTube here for free startup ideas (I also read every comment on YouTube).

New podcast is out and it's the most fun one I've had ever after recording 150+ episodes of the show. You'll get 3 free startup ideas from a marketing legend Jonathan Courtney and a bunch of smiles. Watch on YouTube​ Listen on Spotify​ Listen on Apple Podcasts​ By the way... Lots of people have asked me: "how do I stay up to date with your podcasts with all those free startup ideas?". Good news! If you want to be added to get notifications for when new The Startup Ideas Podcast drops every week click here and I'll add you to the weekly notification email.

Next up, bookmarks I saved this week worth reading

#1

brett goldstein @thatguybg the real money in refrigeration wasn't made by the people who invented it but by brands that leveraged it like Coca-Cola. LLMs are gonna play out the same way. 6:30 PM • Apr 29, 2024 161 Retweets 1111 Likes Read 51 replies

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I agree. Think of AI as the new mobile. There's going to be tons of new apps that will capture tons of value.

#2

aiman @dumbsoftheart crazy how sitting in a cafe and reading a book is a top ten human experience... you don’t need much to experience profound joy 3:41 AM • Apr 28, 2024 3209 Retweets 18635 Likes Read 16 replies

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Reminder to grab a book and head to a cafe.

#3

aj @ajlkn Crazy prediction but imo standalone devices will make a comeback once the phone epidemic runs its course and we look back on it the way we do smoking in the 1960s https://twitter.com/lucas__crespo/status/1783918972897005579 Lucas Crespo 📧 @lucas__crespo What if Apple released a stand alone camera? 1:7 PM • Apr 27, 2024 1 Retweets 61 Likes Read 12 replies

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This is an interesting prompt. I do think that the trend around standalone devices is only getting started. The "unbundling" of the iPhone.

#4

Sherry @SchrodingrsBrat “Where do you get your ideas from?” 1:18 PM • Apr 26, 2024 547 Retweets 5374 Likes Read 25 replies

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Walking will give your best ideas.

Before I head off... some resources to help you grow your business:

1. SEO is a goldmine right now with the right AI tools. I highly recommend contacting BoringMarketing.com to learn more about having them implement their AI-assisted approach so that you drive organic customers on auto-pilot. Nothing to lose by booking a free call with them here.

1. ​DesignScientist.com - if you want to grow your business, you need design assets that perform. Websites, social media assets, email templates, A+ copywriting, landing pages etc. DesignScientist.com is the only AI-assisted design agency that will build you designs that will scale your revenue. DeSci is the design agency you want because you want assets that work. Learn more here.

2. Update: Community Empire membership has moved to waitlist only due to demand. If you want to level up your business, this is the membership that will bring you around other internet entrepreneurs who are building cash-flowing businesses using internet audiences and communities. Learn more here.

3.

Thank you for reading Greg's Letter. I hope you found it valuable. Forward to a friend if you did or share on social to get others thinking.

I'll keep writing if you keep reading. I read every reply if you care to reply :). You might get an answer back.

Until next week.

Be well,

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