Tips & Tricks

In today's video we talk to you about wedge equity and why it's important for growing the equitable value of your business. Wedge equity is the difference between the value of your business at the start or today's present value versus at the end. It's the incremental value or how we're making our business more valuable over time. By building wedge equity, we can get better terms on exit or when it comes time to raise capital. It's also a great way to build a better, more profitable, sustainable business. In this video, I'll explain what wedge equity is, how to build it, and why it matters. We'll simplify the concept into operational equity and brand equity and provide strategies and accountabilities to drive simplicity in operations. Join me to learn how to build wedge equity in your business and achieve simple profitable outcomes.

In today's video I'll be discussing how to value a simple business. As someone who builds, buys, and sells simple profit businesses every day, I'll be sharing my insights on how to evaluate a business. First, I'll explain that price is just what someone else is willing to pay, but the market does typically dictate price. I'll then go over the two most common ways to value a business: money multiples and asset multiples. I'll also touch on seller's discretionary earnings and how to normalize them. I'll keep it simple, but as the need arises, I'll add additional complexities to ensure that we're pricing the deal appropriately. So if you're interested in learning how to value a simple business, keep watching!

In today's video we discuss our story as Bootstrapper Capital building our $100M portfolio, 100% in public as we commit to the journey of simple, profitable outcomes.