In 2015 Mike Winnet started U.K.- based Learning Heroes after recognizing that most e-learning programs were long and boring.
Winnet saw an opportunity to transform the industry by creating short, engaging, animated training courses. He started by trying to sell his courses to job seekers, but when his efforts failed, he pivoted to selling to companies.
Instead of a few hundred dollars a year from job seekers, selling to companies meant he was getting a few thousand dollars a year.
The switch from B2C to B2B worked, and in less than three years, Winnet grew his company to around £2 million in annual recurring revenue, which was when he was approached by Litmos, a learning management software provider. Winnet sold Learning Heroes to Litmos for approximately four times revenue.
In this episode, you’ll learn how to:
Avoid the most common mistake made by first-time entrepreneurs.
Utilize a counterintuitive marketing strategy to surpass your competitors.
Position yourself in the market using a unique pricing strategy.
Create content that wins new business.
Strategically productize a service.
Negotiate a higher multiple for your company.
Sell your company without an earn-out.
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More About Mike Winnet
Mike Winnet is the founder of IAM Productions and the much acclaimed Contrepreneur series on YouTube. Before that, he co-founded Learning Heroes, a business that he went on to sell for £8 million.
Definitions
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.
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.
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.
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