B2B vs. B2C
“Mike Winnet started an e-learning business in 2015 with a model selling to business to consumers. He quickly learned he could gain much more value for his courses by selling to business to business,” shares Sam Thompson a Minneapolis business broker and the president of M&A firm Transitions In Business. “This episode we learn many marketing tips plus how to achieve a higher multiple when selling.”
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.
Winnet 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.