In 2011 Perry Rosenbloom started the web development company Brighter Vision.
After a few years of jumping from project to project, Rosenbloom had a breakthrough: Instead of doing web design for everyone, he decided to focus on creating websites exclusively for therapists.
His decision to niche down worked, and revenue soared.
By 2020 Rosenbloom had thousands of customers and millions in sales, which was when Evercommerce made an offer to acquire Brighter Vision for $17.5 million.
In this episode, you’ll learn how to:
Niche down to a specific target segment.
Implement a recurring revenue model for your service business.
Avoid hiring the wrong employees.
Develop leaders from within your company.
Utilize an effective negotiation tactic to increase the sale price.
More About Perry Rosenbloom
Perry Rosenbloom’s career has run the gamut from software startups to building a network of outdoor-focused websites, which were once REI’s largest affiliate referrer.
In 2011, he founded Brighter Vision. What initially began as custom websites sold on a subscription revenue model evolved into a web design & marketing platform for behavioral health professionals. He bootstrapped the company to multiple millions in ARR before selling to EverCommerce in 2020.
Today, Brighter Vision’s platform powers thousands of therapists worldwide in helping them better market their private practice.
After the acquisition, Perry took a year off to ski, flyfish, and travel the country with his family. Today, he and two co-founders are building Motion.io, a platform focused on making it simple to manage client projects.
Earn-out: Earnout or earn-out refers to a pricing structure in mergers and acquisitions where the sellers must “earn” part of the purchase price based on the performance of the business following the acquisition. Source.
Due-Diligence: Due diligence is an investigation, audit, or review performed to confirm facts or details of a matter under consideration. In the financial world, due diligence requires an examination of financial records before entering into a proposed transaction with another party. Source.
Letter of Intent (LOI): A letter of intent (LOI) is a document declaring the preliminary commitment of one party to do business with another. The letter outlines the chief terms of a prospective deal. Commonly used in major business transactions, LOIs are similar in content to term sheets. One major difference between the two, though, is that LOIs are presented in letter formats, while term sheets are listicle in nature. Source.
Churn: Churn is a measurement of the percentage of accounts that cancel or choose not to renew their subscriptions. A high churn rate can negatively impact Monthly Recurring Revenue (MRR) and can also indicate dissatisfaction with a product or service.
Churn is the measure of how many customers stop using a product. This can be measured based on actual usage or failure to renew (when the product is sold using a subscription model). Often evaluated for a specific period of time, there can be a monthly, quarterly, or annual churn rate. Source.
Preferred Preference: Preferred Preference means that amount equal to the sum of the Preferred Preference Per Share for all shares of Company Preferred Stock (including any rights convertible into, or exercisable or exchangeable for, shares of Company Preferred Stock on an as-converted, exercised, or exchanged basis) issued and outstanding immediately prior to the Effective Time, rounded to the nearest one hundredth (0.01) (with amounts 0.005 and above rounded up). Source.