T. Harv EkerI teach you how to master the inner game of wealth - because if you don’t win there, you don’t win anywhere.

The #1 Reason Why You Should Always Have An Exit Plan

Name: The #1 Reason Why You Should Always Have An Exit Plan
Uploaded: 2021-02-05T16:01:18+00:00
Duration: 1 min 32 s
Channel: T. Harv Eker
Description: T. Harv Eker explains why entrepreneurs need an exit plan. Build a systemized business that runs without you, hit $10M to $50M in revenue within 3-4…

5 Feb 2021 · 2 min

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1:32

T. Harv Eker explains why entrepreneurs need an exit plan. Build a systemized business that runs without you, hit $10M to $50M in revenue within 3-4 years, and sell at roughly 5x multiple. Turn a $1M investment into $5M.

Questions this video answers

Three to four years.

$10 million, $20 million, or $50 million (examples).

About five times revenue.

If an investor puts in $1,000,000, they can make $5,000,000 (5x return).

Chapters

What I teach is this, if you want to make the difference between earning a living and having a nice life and having, you know, decent money, etc, etc, then keep your business, enjoy the profits, etc. Etc. But if you want to get rich and you have systemized that business properly and you have duplicated properly, you can sell that business. Why? Because investors are constantly looking for business opportunities, businesses they can buy that run on their own, where everything is set up and systemized. It's like a machine. It's a money machine, can understand it, very, very consistent and it's constant and it's a money machine. And your job is to create a money machine so that some big player will buy that business from you for a. Excuse my language. Load of money. A sh. T. Load of money. Let me explain something to you. I'm a big time investor right now. I invest in many, many, many different businesses through different funds and friends, etc. The very first question I ask when I'm investing, what's the exit plan here? When are we getting our money back out? When's the sale going to happen? And they always say we're going to do this, do this, this, this. We're looking for a three to four year period and we're going to sell, we're going to build it up to somewhere between revenues of possibly 10 or 20 or $50 million and sell for a multiple of five times that. Meaning that I can make five times that money. If I put a million dollars In, I make $5 million. Good or good. So those are the critical steps to wealth.