This Built to Sell Radio episode features an interview with John Rood, who built Next Step, a test prep business that helped students prepare for the medical school admissions test (MCAT). John Rood built Next Step to almost $10 million in revenue, with EBITDA margins ranging from 20–40%, before selling to New Harbour Group, a private equity business doing a roll-up of test prep companies.
Although it was a financial windfall for John, his exit left him empty inside. John drifted and had difficulty processing his newfound life, which led him to consider if other founders struggled with life post-exit. He began interviewing other entrepreneurs who had sold and is now putting the finishing touches on a book called Beyond the Exit, which will come out later this year.
During this interview, you’ll hear John’s journey of turning a service business into a product company and get John’s findings from his research with 71 exited founders. You’ll learn how to:
Ensure subcontractors don’t do an end run around you to go directly to your customers.
Pay yourself first.
Escape the service business trap.
Turn a service company into a subscription model.
Differentiate yourself in a crowded market.
Run a closed auction to sell your business.
Thrive in your life after you sell.
Avoid the biggest mistake founders make after they sell.
Want to learn how to make your business irresistible to buyers? CLICK HERE to schedule a meeting with me today.
Video: Escaping the Service Business Trap with John Rood
Mark Hartmann is a three-time Inc 500|5000 CEO with a rich sales, operations, and leadership background in the insurance, financial services, and healthcare sectors. With extensive experience growing and selling his own businesses, Mark leverages his expertise to help owners grow and sell businesses valued at $1M —$25M. He’s earned a master’s degree in organizational change management from St. Elizabeth University and a graduate certificate in executive coaching from Columbia University. Mark’s professional certifications include Certified Mergers and Acquisitions Professional (CM&AP), Certified Business Intermediary (CBI), Certified Exit Planning Advisor (CEPA), and Certified Value Builder (CVB).