the 1kx matrix: how to radically grow any business · 1. build revenues 2. build profits 3. build...

© 2019 Roland Frasier

The 1kX Matrix: How To Radically Grow Any BusinessBusiness Mastery June 2019


Medical Billing **

eLearning *

Commercial Real Estate *

Residential Real Estate ***

Trade Shows/Events

Motorcycle Equipment *

Direct Response *

Digital Marketing Agency

Machine Manufacturing **

Sporting Goods *

Legal Services

Mastermind Groups *

Supplements *

Real Estate Training *

Online Casinos *

eCommerce *

CPG **

Corporate Training

Document Preparation

Medical Equipment *

Telecom Infrastructure *

Beauty + Cosmetics *

Tax Services

Software As A Service *

A Proven System For Growth

* $10MM+ | ** $100MM+ | *** $1B+

1. Build Revenues 2. Build Profits 3. Build Value

BMI + Flow-RidingBOB + IntegrationsVerticalization33 Leverage MatrixStrategic PartnershipsTraffic GridProduct Mix/Dev GridBML/PMF LoopGISCPivot Canvas

The 1kX Matrix


TOC OptimizationE2P Canvas Conversion Margin MatchTop Line ScrapeGeo-Index Arbitrage5 WhysLateral IntegrationSuper Employee Creator16X MIAs + LIAsCXO + CRO

SOAPS + EOI FilterFPR + InversionMoat (IP + CA + NE)MRR/ARR MultiplierOKRs + 4DX + SOPsCCB DiamondsPVC Differentiation MapCVJ + PSS CanvasEV Acquisition ArbitrageMultiple Bump Matrix


THINKDIFFERENT

Can You Finish The Maze In 20 Seconds Using Just Your Eyes?

Start

Finish


Lateral Thinking:Move outside the implied rules of the system

Start

Finish


What assumptions are impeding your speed right now?

Disruptive Thinking: Make new rules or a newsystem

Start

Finish


What assumptions are impeding your speed right now?

Think LaterallyWhat can grow my business 10x… 100x… 1,000x?

Optimization yields Linear Growth

Innovation yields Exponential Growth



Apply Lateral ThinkingWhat pre-conceptions about your life or business currently hold you back?

What factual assumptions are you making that may not be actual facts?

What language patterns are you using to frame solutions that may lead you to make incorrect assumptions?


FIRST-PRINCIPLES REASONING


“Boil things down to their fundamental truths and reason up from there. Most of our life, we reason by analogy, copying what other people do with slightvariations.” -Elon Musk


STEP 1: IDENTIFY + DEFINE

Identify and define your current assumptions


Lux Vacation Rentals: “Need a fund to acquire luxury real estate properties.”

Dugout Mugs: “$13.50 cost to create a Dugout Mug”


STEP 2: BREAK DOWN

Break down the problem into its fundamental principles


Lux Vacation Rentals: Is ownership required to achieve the core objective? Is a fund required to own?

Dugout Mugs: What are the material components of a Dugout Mug? What’s the commoditized cost of a) the wood? b) the burn? c) the labor?


STEP 3: NEW SOLUTIONSCreate new solutions from scratch a la Elon

Tesla: Cheaper, higher capacity batteries $80/khr vs. $600

SpaceX: Reusable rockets

Paypal: Make payments by email


Lux Vacation Rentals: Existing fund partner to save time + cost + liability of a fund? Bank partner to monetize bank lux REOs? Broker partner?

Dugout Mugs: Raws not from bats? Source wood + mfg. + labor overseas? Reduce COGS 90% ($13.50 to $1.35)?


INVERSION THINKINGThink about and plan for the opposite of what you want to happen.

“Man muss immer umkehren” [You must always turn back] –Carl Jacobi


INVERSION THINKING“It is remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent.”

–Charlie Munger


“Turn a situation or problem upside down. Look at it backward. What happens if all our plans go wrong? Where don’t we want to go, and how do you get there? Tell me where I’m going to die so I don’t go there.”


INVERSION THINKING1. What do you want to happen? E.g. Get more new

customers for my direct mail business

2. Inversion – What’s the opposite of what you want? E.g. How can I prevent the business from getting new customers? Don’t mail.

3. Preventative solutions: How can I ensure the mail gets sent and on time? Create a mail calendar + dual responsibility & reporting


STARTING NEW PROFIT CENTERS

FROM NOTHING?


Eyjafjallajökull


NO PRODUCTNO LISTNO €€


€1,108€1,121,315

1,012X


LAUNCHNEW PROFIT

CENTERS


EVENTS €412KTRAINING €887K

LIST 7,300DEALS

WHAT’S YOURUVP?



DIFFERENTIATE:YOUR BRAND

CATEGORY


People Think In Ordered ListsOn A Scale Of 1 To 10… Top 3…

You currently occupy a rung on some ladder. To move up, you must:

“Pay your dues”

Hop to a different ladder

Be #1 on a new ladder


Beer

Imported Beer

Mexican Beer NetherlandsBeer Japanese Beer

Domestic Beer

#1 In USA #1 In Germany

Lite Beer Beer With Orange Craft Beer


BeerBrands Find New Categories

32,000 Types Of Beer In Over 100 Categories

ADDRESSABLEMARKET



One-To-Many Niche StrategyDollar Shave ClubRazors > All Bathroom

UnileverMargarine > Food > Nutrition + Personal Care

SHV HOLDINGS N.V.Coal > Oil > Transport

AmazonBooks > Everything Store

Micro-Markets To Macro-Markets


2013 Survival Life 3MM Preppers Base

2015 Survival Life 40MM Campers 13x Increase

2017 Native Commerce 141MM Outdoor Sports 47x Increase

COMPETITIVE ADVANTAGE


“The #1 thing buyer’s value in a potential acquisition is sustainable

competitive advantage”


Source: Michael Porter

COMPETITIVEADVANTAGE

Threat of New Entrants

Threat of Substitute Products

Supplier Bargaining

Power

Buyer Bargaining

Power

Competitor Rivalry

THE FIVE FORCES


COMPETITIVEADVANTAGE

Sustainable Competitive AdvantageCost Leadership

Achieve efficiencies to provide better value

DifferentiationInnovation, Quality or Customer Experience

FocusServe focused niche

With Premium Pricing

FocusServe focused nichewith Lowest Pricing

OR


Advertising Communicates + Amplifies Competitive Advantage

The purpose of marketing is to differentiate yourself from the norm.

Roy H. Williams


CASE STUDY€111 Million Sale Vertically Integrated High Margin Cost Leadership

30% In-Store Conversion + CZ Innovative Display Sales Model

Superior Customer Experience

Selection + Speed of Delivery

Artisan Diamond Pioneer (Cost Leadership + Innovation)

Ultra-Light Inventory Model (Cost Leadership)


CASE STUDY

Debt + Equity RecapOver 100 Patents: Innovation + Defensible IP

79 Year Old Company: Longevity

Superior Customer Experience

Goettl University: Superior Training, Systems + SOPs

500% Y-O-Y Growth Since 2015 Via Multiple Acquisitions


COMPETITIVEADVANTAGEWORKSHEET

1. ____________2. ____________3. ____________4. ____________5. ____________

Customer Needs/Wants



1. ____________2. ____________3. ____________4. ____________5. ____________


1. ____________2. ____________3. ____________4. ____________5. ____________

Competitive Strengths



Competitive Advantages1. _________________________2. _________________________3. _________________________4. _________________________5. _________________________

1. ____________2. ____________3. ____________4. ____________5. ____________


1. ____________2. ____________3. ____________4. ____________5. ____________


1. ____________2. ____________3. ____________4. ____________5. ____________

Competitor StrengthsTablesta

kes Vulnerable

Competitive Advantage

Perfect Competition

Tablestakes1. _____________2. _____________3. _____________4. _____________5. _____________

Vulnerabilities1. _____________2. _____________3. _____________4. _____________5. _____________

S P

I RLQ

E C

S P

I RLQ

E CKey Migration FactorsPrice CapitalLabor ResourcesInnovation QualityExperience Segmentation





________________________________________________________________________________



kes Vulnerable


Perfect Competition

Tablestakes1. _____________2. _____________3. _____________4. _____________5. _____________


S P

I RLQ

E C

S P

I RLQ


New Items; Known BrandsLow Price; Free ShippingHigh Quality; Physical StoreUseful + Entertaining ContentKown Influencer; Easy To Buy

________________________________________________________________________________

New Items; Known Brands Low Price; Freee Shipping High Quality; Physical StoreHuge Selection; Easy To Buy Huge, Trusted Retail Brand

________________________________________________________________________________

New Items, Known BrandsFree Test Model Lowest $$

Useful + Entertaining ContentKnown Influencer; MRRPhysical Store; Assoc. Stick





________________________________________________________________________________



kes Vulnerable


Perfect Competition

Tablestakes1. _____________2. _____________3. _____________4. _____________5. _____________


S P

I RLQ

E C

S P

I RLQ



________________________________________________________________________________


________________________________________________________________________________



New ItemsKnown BrandsPhysical Store





________________________________________________________________________________



kes Vulnerable


Perfect Competition

Tablestakes1. _____________2. _____________3. _____________4. _____________5. _____________


S P

I RLQ

E C

S P

I RLQ



________________________________________________________________________________


________________________________________________________________________________




Free ShippingHigh QualityEasy To BuyHuge SelectionTrusted Retail Brand





________________________________________________________________________________



kes Vulnerable


Perfect Competition

Tablestakes1. _____________2. _____________3. _____________4. _____________5. _____________


S P

I RLQ

E C

S P

I RLQ



________________________________________________________________________________


________________________________________________________________________________



Faster Innovation of Newest ItemsFree Test Model Lowest $$ Useful + Entertaining ContentKnown InfluencerAssociation Continuity Stick & Low Churn


Free ShippingHigh QualityEasy To BuyHuge Selection





________________________________________________________________________________



kes Vulnerable


Perfect Competition

Tablestakes1. _____________2. _____________3. _____________4. _____________5. _____________


S P

I RLQ

E C

S P

I RLQ



________________________________________________________________________________


________________________________________________________________________________



Continual Flow of Newest ItemsFree Test Model Lowest $$ Useful + Entertaining ContentKnown Influencer; MRRAssociation Continuity Stick & Low Churn






[email protected] | 858.204.9500



________________________________________________________________________________



kes Vulnerable


Perfect Competition

Tablestakes1. _____________2. _____________3. _____________4. _____________5. _____________


S P

I RLQ

E C

S P

I RLQ



________________________________________________________________________________


________________________________________________________________________________



Continual Flow of Newest ItemsFree Test Model Lowest $$ Useful + Entertaining ContentKnown Influencer; MRRAssociation Continuity Stick & Low Churn





1. ____________2. ____________3. ____________4. ____________5. ____________


1. ____________2. ____________3. ____________4. ____________5. ____________


1. ____________2. ____________3. ____________4. ____________5. ____________


kes Vulnerable


Perfect Competition

Tablestakes1. _____________2. _____________3. _____________4. _____________5. _____________


S P

I RLQ

E C

S P

I RLQ



Price1. ____________________

2. ____________________

3. ____________________

4. ____________________

5. ____________________

Capital1. ____________________

2. ____________________

3. ____________________

4. ____________________

5. ____________________

Innovation1. ____________________

2. ____________________

3. ____________________

4. ____________________

5. ____________________

Quality1. ____________________

2. ____________________

3. ____________________

4. ____________________

5. ____________________

Labor1. ____________________

2. ____________________

3. ____________________

4. ____________________

5. ____________________

Resources1. ____________________

2. ____________________

3. ____________________

4. ____________________

5. ____________________

Experience1. ____________________

2. ____________________

3. ____________________

4. ____________________

5. ____________________

Segmentation1. ____________________

2. ____________________

3. ____________________

4. ____________________

5. ____________________

KEY MIGRATION FACTORS


BUSINESS MODEL

INNOVATION© 2019 Roland Frasier

Systems Of Disruption = Business Model Innovation

• Landlord (Physical/IP)

• Affiliate

• Pay As You Go

• Publisher

• Franchise

• Manufacturer/Sales Rep

• Wholesaler


• Broker

• Reseller/VAR

• Retailer

• Network Marketing

• All you can eat

• Direct Seller

• Subscription

Business Model Innovation System

Experiment With Different Pricing Models

• Free (Ad Supported)

• Freemium

• Value Based

• Tiered/Volume

• Feature + Add-Ons

• Low Price

• MSRP/MAP


• Free + Paid Support

• “Cost +” or “x Cost”

• Portfolio/Suite

• Commodity

• Razor + Blade

• Premium/Luxury

• Discount

Business Model Innovation System

Uber Product Innovation MappingBusiness Model

Primary Secondary Tertiary

Pric

ing

Mod

els Pr

imar

ySe

cond

ary

Tert

iary


Broker: Connect Drivers With Passengers

Volume: Charge 15%-30% Brokerage Fee

Landlord/Tenant: Drivers Rent Car Space

Tiered based on type of car requested

Volume (Distance/Miles)

Time of Day Premium

Affiliate

Referral Fees For New Customers

Referral Fee For New Drivers

SurvivalLife Product Innovation MappingBusiness Model


Pric

ing

Mod

els Pr

imar

ySe

cond

ary

Tert

iary


Direct Seller: Gadgets People Want

Subscription: FPA Membership Publisher

Low Price: Tripwire Value Based Free + Ad Supported

Cost + or X Cost: Upsells to additional products

Tiered: Membership Levels

Feature + Add-ons

New Product Innovation MappingBusiness Model


Pric

ing

Mod

els Pr

imar

ySe

cond

ary

Tert

iary


PIVOT:TO PROFIT + PMF


Zoom-In: Many products become 1 product

Zoom-Out: 1 product becomes many products

Technology: New tech can improve price or performance.

Sales Platform: Switch between house product, affiliate or marketplace

Channel: Change distribution channels but not product

Value Capture: New rev model

Growth Engine: Move between viral, paid or sticky

Customer Need: Tweak product to solve more important need

Customer Segment: Same product to different customer

Architecture: High margin, low volume to or from low margin, high volume


Pivot Canvas: Create New Businesses From Old

SOAPS Business Growth FrameworkSt

ruct

ure

Process MappingOptimize

TOC

Create + Codify SOPsAutomation AuditReview + Adjust

C+B DiamondsMission + We Believes

OKRs + GISC

Entity ChoiceCap TableOrg Chart


Obj

ectiv

es

Activ

ities

Proc

esse

s

Syst

ems

16x MIAs + LIAs3x3x3 Leverage Matrix

5-80-5 + BFOs


SOAPS GROWTH FRAMEWORKSTEP 1: STRUCTURE


PLATFORMRETENTION


Structure To “Sell The Eggs” And Keep The Geese

ShareCoMedia Props

Fin-TeamSales Team

YouTrust, FLP,

FLLC or Corp

HoldingCo

Ops #2New Liability Product Line

Partners

InvestorGroup

Ops #1Primary Business

Ops #3New Geo Territory

Ops #4Profit

Maximizer Company

Cap Table

#3

Cap Table

#4

Goose + Eggs Structure Template

Copyright 2019Roland Frasier

Holding Co Can Spin Off Multiple

Ops Cos

IP-CoTM © ® .com

Cap Table

#2

Hard Assets

Owner

Holding Co.

Ops (Liability)

Partners

Investors

Main Bus/MP Ops (Geo)

Ops (JV/SP)

Cap Table #3

Cap Table #4

Business Structure Template

Copyright 2019Roland Frasier

Holding Co Can Spin Off Multiple

Ops Cos

Intangibles Cap Table #2

SOAPS GROWTH FRAMEWORKSTEP 2: OBJECTIVES


EOI FILTER


Income

© 2019 Roland Frasier Opportunity To Exit

SANDBOXLI-LO

Low IncomeLow Exit Opportunity

DANCING BEARHI-LO

High IncomeLow Exit Opportunity

GRAILHI-HO

High IncomeHigh Exit Opportunity

RUNWAYLI-HO

Low IncomeHigh Exit Opportunity

“Quadrants Create Decision Points To Reposition Profit

Centers For Value”


Income

© 2019 Roland Frasier Opportunity To Exit

SANDBOXLI-LO

Low IncomeLow Exit Opportunity

DANCING BEARHI-LO

High IncomeLow Exit Opportunity

GRAILHI-HO

High IncomeHigh Exit Opportunity

ASCEND

RUNWAYLI-HO

Low IncomeHigh Exit Opportunity

EXIT

ASCE

ND

ASCE

ND

STOP ASCEND

STOP

STOP

“Chart Each Profit Center Into A Value/Performance

Quadrant”


$

© 2019 Roland Frasier O

SANDBOX DANCING BEAR

GRAILRUNWAY

?

? ?

? ?

? ?

1. __________________ H E B2. __________________ H E B3. __________________ H E B4. __________________ H E B5. __________________ H E B

1. __________________ A X E2. __________________ A X E3. __________________ A X E4. __________________ A X E5. __________________ A X E


1. __________________ H E A2. __________________ H E A3. __________________ H E A4. __________________ H E A5. __________________ H E A

?

$

© 2019 Roland Frasier O

SANDBOX DANCING BEAR

GRAILRUNWAY

?

? ?

? ?

? ?

1. __________________ H E B2. __________________ H E B3. __________________ H E B4. __________________ H E B5. __________________ H E B



1. __________________ H E A2. __________________ H E A3. __________________ H E A4. __________________ H E A5. __________________ H E A

?

LMS ProjectNew Event or EcomLending CompanyR.E.I.TNew Media Property

Seasoned Mar-TechDominant EventLeading Media PropFully Funded FundHigh Unit Franchise

Healthcare SupportFood WholesalerAuto Parts SellerSurvival RetailerPublishing Company

Podcast or InfluencerConsulting or AgecnyMastermind/CoachingAffiliate /PromosSpeaking-To-Sell


GROWTH IDEA SCORE CARD

Prioritize What To Do First With The GISC GISC Tool



SOAPS GROWTH FRAMEWORKSTEP 3: ACTIVITIES


CUSTOMER EXPERIENCE ELEVATOR

© 2019 Roland Frasier #War Room April 2019

Customer Touchpoint InventoryPre-Purchase Purchase Post-Purchase

Ads, WebsiteBlog, NewsletterLanding PagesWebinar, FacebookInstagram, YouTubeLinkedIn, EmailChat, UGC, Ungated User CommunitiesComparison SitesReview Sites, StoreStorefront, AmazonCall Center, Samples

Add-To-CartPersistent CartIn-Cart Pre-CheckoutCheckout, Upsells, Down-sellsCross-sellsIn-Purchase SupportThank You Page ConfirmationsChat, MessengerIn-Person SalesCall Center

ConfirmationsShipping, TrackingDelivery, Unboxing1st Product Contact1st Product UseOn-Boarding, NPSConsumption, GiftsFollow-Up, SupportUser CommunitiesUGC, TestimonialsFollow-On Sales Loyalty Programs


Customer Touchpoint InventoryPre-Purchase Purchase Post-Purchase


Customer Experience Elevator

5 ⭐ Review

7 ⭐ Experience

10 ⭐ Experience

3 ⭐ Review


MIA LIA MIP LIP ANALYSIS

Apply Pareto Principal To Your Product Line (270 Products)



SCALE MIAS ELIMINATE LIASBROWN BOX > 6% REV + 8% PROFITWAR ROOM > 6% REV + 42% PROFIT#1 BOOK SYSTEM > 8% REV + 10% PROFITAUTHORITY BP > 6% REV + 9% PROFITECOMMERCE > 63% REV + 8% PROFITEVENTS > 11% REV + 23% PROFIT


EXERCISE: FEED YOUR MIAs STARVE YOUR LIAs

WHAT ARE YOUR MOST IMPACTFUL ACTIVITIES YOU ENJOY MOST RIGHT NOW?

ELIMINATE LIAs FULLY SCALE MIAs

WHAT ADDITIONAL VERTICALS CAN YOU EXPAND YOUR MIAs INTO?

HISTORICAL MIAs (MOST IMPACTFUL ACTIVITIES)


Joy Brand Sales Profit Value Scale Ease5 Year List Of Acyviyes Contribuyng 20%+ To RPV

1. _______________________

2. _______________________

3. _______________________

4. _______________________

5. _______________________

6. _______________________

____ ____ ____ ____ ____ ____ ____

____ ____ ____ ____ ____ ____ ____

____ ____ ____ ____ ____ ____ ____

____ ____ ____ ____ ____ ____ ____

____ ____ ____ ____ ____ ____ ____

____ ____ ____ ____ ____ ____ ____

HISTORICAL LIAs (LEAST IMPACTFUL ACTIVITIES)


Core/Non-Core Eliminate/Keep5 Year List Of Activities That Contributed Less Than 20% To Revenue, Value or Profit

1. ______________________________________

2. ______________________________________

3. ______________________________________

4. ______________________________________

5. ______________________________________

6. ______________________________________

_____ _____

_____ _____

_____ _____

_____ _____

_____ _____

_____ _____

LEVERAGED ACTIVITIES


3 Quick Ways To Find Leverage In Your Business…

#1: Replication

#2: Quick Wins Checklist

#3: Leveraged Growth Matrix© 2019 Roland Frasier

Replicate: How Can We Do A $6MM - $10MM Event Every Month?

Expand Internayonally

• Reuse The Same Content

• Access Host-Partner Audiences

• Uylize Host-Partner Teams

• Sell Exisyng Sponsor Pipeline

• Tap Local Ceryfied Partner Network

• Launch New Countries From Host-Partner Events

• Leveraged Customers: Partner Audiences

• Leveraged Investment: Partner + Sponsors

• Leveraged Team: Core Team + Partner Staff

• 2020: Amsterdam + USA West

• 2021: Asia Pacific + Russia + Brazil


__ Expand Internayonally (T/G/S/F)

__ Manufacture In-House (G/S)

__ Buy Your Compeytors (T/G/S)

__ Buy Your Suppliers (T/G/S)

__ Buy Your Clients / Partners (T/G/S)

__ Cost Center To Profit Center (G/S/F)

__ Buy Complementary Media (T/G/S)

__ Franchise To Others (G/S/F)

__ License Brand/Products To Others (G)

__ Create JVs + Strategic Partnerships (T/G/S/F)

__ License Other Brands/Products/Services (G)

__ Crowdfund With Clients + Customers (G/S/F)

__ Debt/Equity Offering (T/G/S/F)

__ Borrow A Salesforce/Rep. Network (T/G/S)

__ Outsource Or Offshore Functions (T/S)

__ Add Services/Digital To Physical Products (G)

__ Add Physical Products To Services/Digital (G)

__ Bolt-On Businesses (G/F) Benefits Key:T = Team G = GrowthS = Scale F = Funding

Method #2: Quick Wins Leverage Checklist


Leveraged Customer Acquisiyon (KPI = CAC + DPL + Viral Coefficient)

Add A Channel

Acquire Enyty

Affinity Play

Leveraged Transacyon Size + Margin Enhancement (KPI = ICV + GM)

Add OPP + OPS

Bigger Orders

Higher Margins

Leveraged Buyer Frequency (KPI = CHURN + LTV + MAU + PIR)

Add Recurring

Buy Recurring $

Borrow Rec. $

Data + Network

Investors + Targets

Influencers + PMF

OP Products/Offers

OP Dist. Channels

Consolidate S/C

OP Products/Offers

Investors + Targets

OP Products/Offers

Media + Channels

SPA/APA/License

COIs + Virality

Svc/Prod Partners

Bulk + Bundles

Vert/Horiz Int.

New Prod/Serv

SPA or APA

Outsourced

Channel Partners

Capital + Debt

Social Proof/P2P

Super Funnel

Wholesalers

Mfg. + Strat Rels.

License/Contract

Capital + Debt

Partner/Affiliate

Method #3: 3x3x3 Leveraged Growth MatrixGoal Method NeedMeans


Sales Force, Entrepreneur, MicroSo~

Purchased SurvivalLife.com, Publishing Company

Influencers @ Events, Top-Down Video, eSports

Referrals From Sharks e.g. SpyEscape

BathBombSupplies.com + Wholesale Distributors

T-Shirts, Bath Bombs, Personalizayon Prinyng

FPA Buyers Club, American Gun Associayon

Purchased TruConversion.com

Recurring Affiliate Offers, Other Peoples’ Lists


Add A Channel

Acquire Enyty

Affinity Play


Add OPP + OPS

Bigger Orders

Higher Margins


Add Recurring

Buy Recurring $

Borrow Recurring

Channel Partner

SPA/APA/License

COIs + Virality

Svc/Prod Partners

Wholesalers

Vert/Horiz Int.

New Prod/Service

SPA or APA

Outsourced

3x3x3 Leveraged Growth ExamplesGoal Method Means


Traffic Channel Grid Exercise + Channel Partner List

Mergers & Acquisiyons Grid Exercise

Influencers + Celebriyes List

Test Affiliate Offers + Partner With The Best

Find Wholesale Buyers For Your Products/Services

M&A Grid Customers+Suppliers You Could Acquire

5-80-5 MRR Exercise

Mergers & Acquisiyons Grid

Recurring Revenue Affiliate Offers


Add A Channel

Acquire Enyty

Affinity Play


Add OPP + OPS

Bigger Orders

Higher Margins


Add Recurring

Buy Recurring $

Borrow Recurring

Channel Partner

SPA/APA/License

COIs + Virality

Svc/Prod Partners

Wholesalers

Vert/Horiz Int.

New Prod/Service

SPA or APA

Outsourced

3x3x3 Leveraged Growth Action StepsGoal Method Means


LEVERAGEDISCOVERY +

DISTRIBUTION© 2019 Roland Frasier

0 50 100 150 200 250 300 350

Telecom

Banking

B2B

Real Estate

PR Media

Tech Hardware

Financial

Non-Profit Edu

B2C

Marketing Agency

Healthcare

Prof. Serv. Consulting

Transportation

Manufacturing

Construct ion

Consumer Goods

Customer Acquisition Cost

© Roland Frasier

The High Cost Of Customer Acquisition


OPP = Other People’s Pla�orms


One Lisyng Built €31B Company


Successful Leveraged Virality Plays…Dropbox, Uber, Harry’s, Groupon, Blue Apron Used Bribes

One Plus, Naked Wines + GmailUsed A Waiting List + Invites

Etsy, Udemy, Tinder Used Live Events

Facebook, Lyft + Yelp Used Geo-Launch + Data-Informed Expansion

5-80-5 MRR


INSIGHT #1


Static = 1X


MRR = 4X-5X!

Static €6.4M

Valuation @ €531K/Month

MRR €31.9M€25.5MM More!


What Stayc Income Can We

Convert To MRR?© 2019 Roland Frasier

€4.8M Into€23.9M


How We Did It…#1: End A-La-Carte Trainings

#2: Focus… Grow Existing MRR

#3: Convert Non-MRR Into MRR© 2019 Roland Frasier

How You Can Do This…#1

Convert 1X Payments To MRR


Rent The Runway: Fashion Subscription

Cadillac BOOK: Automobile Subscription

Apple iPhone: Cell Phone Subscription

Convert 1X To MRR… Lori Taylor: TruDog

1X To MRR… Vital Choice Seafood

Add MRR (Supplements) To Non-MRR (Seafood)

How You Can Do This…

#2Add MRR Services


Add MRR Services… Michael Parrella: I Love Kickboxing


Turn 1X Sales IntoA SaaS Or Box


Add MRR Services… Ezra Firestone: One Click Upsell

Add MRR Services… Digital Marketer DMHQ


Memberships, Associations + Buyer’s Clubs


Add Membership Upsells To Funnels


Add Associayon Upsells To Funnels


Add Buyers Club Upsells To Funnels


Stack All 3 Together



Add Product + Service Certifications Or Licenses


Course Related Ceryficayons… DigitalMarketer.com


Training Related Ceryficayons… Bikram Yoga


Product Related Certifications… Underwriters Labs


MRR Step-By-Step


MRR Step-By-Step Example


5-80-5 E2P


INSIGHT #2


LET THEM LAUGH

November 2006



€125B€58.3B

€22.7B

NAINT

AWS

€6.4B€-1.9B

€6.6B

NAINT

AWS

NET SALES PROFIT

Source: Amazon 2018 Annual Report


€6.4B€-1.9B

€6.6B

NAINT

AWS

AWS EARNED11.6X THE PROFIT

MARGIN ON87.6% LESS REVENUE

PROFIT

Source: Amazon 2018 Annual Report

€43,400Content Team


€283K RevenueBonus… It’s MRR


€80,616 Profit


How You Can Do This…#1: Identify Your Biggest Expenses#2: Convert To Profit Centers? #3: Offer Each As A New Product Or Service


E2P…


E2P… Example



SOAPS GROWTH FRAMEWORKSTEPS 4/5: PROCESSES & SYSTEMS

5-80-5 BOB


Bolt-On Business


How You Can Do This…

#1: Identify Your Superpowers

#2: Who Has Your Customers?

#3: Match SPs To Their Needs© 2019 Roland Frasier

BOB 5X Lead Multiplier… Example


BOB 5X Lead Mulyplier… Example



CO-BRAND WITH PRODUCT

INTEGRATION PARTNERSHIPS

EO San Diego


EXERCISE


ACQUISITIONFOR GROWTH

Structure For A Bigger Exit


Revenue

Profit

Mulyple

Cash To Seller

X-EBITDA

€5,000,000

€1,000,000

7

€7,000,000

X-Revenue

€5,000,000

7

€35,000,000

X-SDC/SDE

€5,000,000

€1,000,000

1

€1,000,000

Same #s… Very Different Results


4Steps To Acquire

For Growth


Step 1: Decide Which Types Of Businesses ToAcquire

CORE BUSINESS

MEDIA

IP

SERVICEVENDORS

PRODUCT VENDORS

TEAM + RESOURCES

SUPPLY + DISTRIBUTION


IDEA INCUBATOR

MEDIA

IP

SERVICEVENDORS

PRODUCT VENDORS

TEAM

SUPPLY + DISTRIBUTION


RolandFrasier.com WAR ROOM 10/18

CORE BUSINESS

MEDIA__________________________________________________

IP______________________________________________________________________

RESOURCES__________________________________

SUPPLY + DIST.__________________________________

SERVICES__________________________________________________

PRODUCT__________________________________________________

M =___

M =___

M =___

M =___

M =___

M =___

M =___


CORE BUSINESS

MEDIA__________________________________________________

IP______________________________________________________________________

RESOURCES__________________________________

SUPPLY + DIST.__________________________________

SERVICES__________________________________________________

PRODUCT__________________________________________________

M =___

M =___

M =___

M =___

M =___

M =___

Affiliates, Customers,SOPs, Ops/Dev Team

Manufacturer, SupplierDistributor, Retail Site

WebsiteBlogFacebook GroupInstagram PageYouTube Acct.

FinancialBusinessPublishingAdvertisingBrokerage

PatentCustomer ListTrademarkSoftwareCopyright

RelatedUpsell/DownsellCross-SellSubstituteComplementary

M =___


Step 2: Buy Businesses For Nothing DownOwner CarryEarn-OutSwapsABL

Split EquitySLiPBase-LinePipe Wrench

Buy A €25M Company For €0€25M Ask For Established Major Media Brand€10M For 75% Instead Of €25M For All€2M Down + €8M Financed From Cash Flow€2M Sell 15% To Non-Competing PartnerOwn 60% For €0 Out Of Pocket



Step 3: Find The Exit Mulyple For Each Profit Center

Revenue Mulyples By Industry 2018

Source: Stern.NYU.edu

Industry Determines Valuation

What Business Are You In?

What Valuation?


CORE BUSINESS

MEDIA__________________________________________________

IP______________________________________________________________________

RESOURCES__________________________________

SUPPLY + DIST.__________________________________

SERVICES__________________________________________________

PRODUCT__________________________________________________

M =2-5x

M =1-2x

M =31x

M =.9x

M =1-3x

M =2-8x

M =1-3x








Step 4: Reposition Towards The Highest Exit Multiple


Which Exit Mulyple Creates The Greatest Exit Value?

IndustryEdu. ServicesPublishingBusiness ServicesSo~ware/Internet

Mulyple1.45.91

1.836.76

IndustryR.E.I.TDiversifiedFinance ServicesRetail Internet

Multiple11.432.64

31.812.99

Up To 30.9X Higher Valuation!Total Market = 2.89


CORE BUSINESS

MEDIA__________________________________________________

IP______________________________________________________________________

RESOURCES__________________________________

SUPPLY + DIST.__________________________________

SERVICES__________________________________________________

PRODUCT__________________________________________________

M =2-5x

M =1-2x

M =31x

M =.9x

M =1-3x

M =2-8x

M =1-3x







2nd

1st3rd


Increased Valuayon From Reposiyoning The Business

2014PublishingMultiple = .91

2019REIT + SoftwareMultiple = 7.73


684%


Buy + Sell For WealthStep 1: Decide What To BuyStep 2: Buy For Nothing DownStep 3: Choose An Exit MulypleStep 4: Reposiyon For Exit

EV Acquisiyon Arbitrage: Acquire Low Mulyple Enyyes With Your Higher Mulyple Business


Thank You!

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