Building and Exiting a Business: Key Insights from Ed Johnson
In a recent episode of the Unnoticed Entrepreneur podcast, host Jim had an engaging conversation with Ed Johnson, a successful entrepreneur who co-founded and sold the mentoring platform PushFar. Ed shared his journey from a tech-savvy youngster to a seasoned entrepreneur, offering valuable insights into building a business with the end in mind, pivoting when necessary, and the importance of content creation.
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The Importance of Planning Your Exit
One of the first points Ed emphasized was the importance of planning your exit strategy before you even start your business. He noted that many entrepreneurs get so caught up in the day-to-day operations that they forget to think about how they will eventually leave the business. This can lead to a situation where the business owns you as much as you own it. Ed's successful exit from PushFar, which he sold to a private equity firm, serves as a testament to the value of having a clear exit plan.
The Story of PushFar
Ed's journey with PushFar began with a broad vision of creating a career progression platform. However, he quickly realized that the mentoring aspect of the platform garnered the most interest. This led to a pivotal decision to focus solely on mentoring, a move that proved to be highly beneficial. Ed's advice here is clear: don't be afraid to pivot and adapt based on market feedback. He stated,
"If we adapted what we were referring to ourselves as, then people would find us."
Engaging with Potential Customers
One of the standout pieces of advice from Ed was the importance of engaging with potential customers early and often. He stressed the value of having as many conversations as possible during the build phase, rather than waiting until the product is fully developed. This approach not only saves time but also ensures that you are building something that people actually want. Ed shared,
"Talk to as many potential customers as possible in the build phase. Don't wait until you've built something to then go out and pitch it."
Building Brand Awareness Through Content
Ed highlighted the power of content creation in building brand awareness. He shared that PushFar's website now has over 500 articles, which helped them become thought leaders in the mentoring space. This content strategy not only improved their SEO but also provided valuable resources for social media sharing. Ed's advice to entrepreneurs is to create valuable, engaging content consistently.
"Good content that's relevant to what you're building is going to be really important."
The Role of an M&A Advisory Firm
When it came time to sell PushFar, Ed and his co-founder decided to employ an M&A advisory firm. This decision was driven by their lack of experience in selling a business and the realization that professionals could get them a better deal. Ed noted that the advisory firm handled negotiations and created effective tension among potential buyers, which was invaluable. He advised,
"They can create effective tension, bidding wars, all these sorts of things that are very valuable in that process."
Launching a New Venture: YouRoutine
Not one to rest on his laurels, Ed has already embarked on a new venture called YouRoutine, a platform focused on accountability and creating routine and structure. This time, Ed is applying the lessons he learned from PushFar, such as the importance of content creation and engaging with both B2B and B2C markets. He is also leveraging modern tools like AI to aid in content creation, making the process more efficient.
Actionable Advice for Entrepreneurs
- Plan Your Exit : Know how you will leave the business before you start it.
- Be Ready to Pivot : Adapt based on market feedback to focus on what works.
- Engage Early : Talk to potential customers during the build phase to ensure you're meeting their needs.
- Create Content : Consistently produce valuable content to build brand awareness and thought leadership.
- Seek Professional Help : Use experts for complex processes like selling your business to get the best results.
Conclusion
Ed Johnson's journey from building and selling PushFar to launching YouRoutine offers a wealth of insights for entrepreneurs. His emphasis on planning, adaptability, customer engagement, and content creation provides a roadmap for building a successful business.
