I Just Spent a Crap Ton of Money and Bought a Company

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I Just Spent a Crap Ton of Money and Bought a Company post image

It’s been over 4 weeks since I’ve posted anything on the web. I’ve been quiet because I bought a company with my business partner.

December was incredible: I spent tons of quality time lounging around with my family in Pennsylvania, I spent a week hanging out with my best friends in New York City, and at the very last minute, I booked a flight to San Diego to hang out with my business partner @AnythingIan. There are some profound changes in store for 2011.

Tropical Baby!

Tropical Baby!

About that company..

We actually bought our own company. When we started our business, over 3 years ago now, we took on a capital partner. Sometime in mid December it occurred to me that in order to grow our business we needed to fundamentally change the ownership structure of our business.

That basically scared the shit out of me.

I spent no less than 2 weeks working on this one deal. It was incredibly scary to approach my partners with a suggestion to change our relationships in such a profound way. First, because its not “just business.” We’ve got serious personal issues at stake. Second, because there is no roadmap on how to do this stuff, I was extremely uncertain of how to carve out a future that worked for everyone. Nobody could really help me figure out what I wanted the world to look like. I needed to do the emotional labor and make a call. It scared the crap out of me.

In the end I’m incredibly happy with the way things worked out.

The situation reminded me of a business cliche I’ve bought in to for a long time: the toughest things for you to face doing are often the most important. This is doubly true if you’ve managed to get other people on your team who’s job it is to run the day to day operations.

It turns out that a few terrifying emails and uncertain phone calls, totalling a week or so of work, changed my financial situation and my lifestyle possibilities more than pretty much everything I did all last year. That’s no case to sit around and write one email a year– everything I did in 2010 gave me the poise to make the right move when the time was right. It is, however, a case for being bold and confronting your fears to get your business to the next level.

The changes from the deal will trickle out across our websites, but here are some basic goals we’ve pulled together:

2011 Revenue: 1.6 Million Stretch Goal

Hypothetical Paths to Our Revenue Goals

Hypothetical Paths to Our Revenue Goals

Many of you have commented on my relentless revenue focus rather than profitability (for example, how to make $10,000 in one day, or how to make $200K in one day), there are lot of reasons that I write and set goals with revenue in mind, but more on that another time. One of my suggestions for business owners is to break out the revenue sources where you’ll hypothetically get your income from. In our case we break it out by domain (pictured above), but we’ll also do the math on how many individual products we’ll need to move. I believe the more realistic you are in your imaginings, the easier it is to manifest them.

Lauch our First Major Information Products

Most of our revenue will continue to come from our niche manufacturing business, but I’m really interested in leveraging our expertise in web marketing to launch some exciting information products. This year we’ll be delivering the following products:

  • How to Flip Used Cars for Profit
  • The Entrepreneur’s Guide to Outsourcing to the Philippines
  • The Bali Expat Guide
  • Premium Membership Option for Lifestyle Business Podcast listeners.
  • Already launched: the first 2 Seasons of the Lifestyle Business Podcast.

Transparency

In 2011 we’ll start to bring our followers in to the inside of our business. This is something we’ll be gradually rolling out, but little by little we’ll bring our listeners inside our business. Not only is this tons of fun, but we get a lot of benefit from having so many smart people evaluating our businesses. Of course there is always the risk of a competator getting an inside look, or people attacking what we are up to, but I don’t think those risks outweight the benefits. I’m really looking forward to sharing what we are up to with more people.

Internships

TMBA internships will be a big part of what we do this upcoming year. Our last two interns, David and Sean, have both been officially hired by our core company. They’ve learned a broad range of web marketing skills, worked from all around the globe, and even started creating very lucrative personal income streams. This has been extraordinarily rewarding. I think David, Sean, and myself will be great friends and colleagues for many years to come. We are all growing together and sharing our passion for our businesses together. It couldn’t be more fun.

Podcasting

I love the Lifestyle Business Podcast. I really have a passion for the radio and I’m elated I can be a part of the scene by having my own little show. This year we will publish over 70 episodes and offer premium content for folks who want greater access to our advice and network. Check it.

Giving Back

Toward the end of 2010 we just got stated lending money to entrepreneurs in the developing world via our investment group at Kiva.org. Its free to sign up and follow our progress. In 2011 I’d like to inspire our group to loan over 5K to entrepreneurs in the Philippines. Ian and I will donate over 1K this year at minimum.

The View from our HQ, Complete with Phantom Jet

The View from our HQ, Complete with Phantom Jet

Travel

A big change for me in 2011 is that I’ll be spending a lot more time in the USA. I need absolutely no goals to inspire me to do some major traveling abroad this year. I will definitely  be spending some significant time in the Philippines finalizing our corporate structure there, hanging out with our staff, and having some fun. We are seriously considering getting a big house in Bali to hang out in… but first things first. I gotta get working :D

Are you a digital nomad who needs some extra income?

I’ve got an SEO / Webmaster gig that I’m looking to hire for. There isn’t big money invovled and you can’t blog about the gig. If you are interested kick me an email with your basic credentials and what you aspire to achieve at Dan [at] TropicalMBA.com and I can share with you more details.

OK! Let’s get crushing it….

Cheers from San Diego,
Dan

@TropicalMBA

Published on 01.04.11
  • http://twitter.com/AlanPerlman Alan Perlman

    Wow. Stoked (with a capital S) to see how 2011 pans out. Booya!

  • http://joelrunyon.com/two3 Joel Runyon | [BIT]

    Congrats Dan! Sounds like an awesome deal. I can’t wait to hear a little more about it. Welcome back to the blogosphere =)

  • Firman

    Congratulation ! but you got a typo on David’s link

  • http://twitter.com/MuseTraffic David Berger

    Damnit. So I finally get a .com domain and people still have typos linking to me =)
    Fixed.

  • http://www.thewaythatyouwander.com Nate

    As you would say… YEAH BUDDY!

  • http://www.tropicalmba.com Dan

    Thank you sir! Was just watching you do a bunch of push ups. Surprisingly entertaining!

  • http://www.tropicalmba.com Dan

    Thanks man :D

  • http://www.tropicalmba.com Dan

    Booyah!

  • http://www.tropicalmba.com Dan

    hehe sweeeeet.

  • http://www.seanogle.com Sean

    HELL YES. That pretty much sums up my excitement. Totally stoked for this year. Congrats again on taking the leap

  • http://twitter.com/myeggnoodles Chris @ MyEggNoodles

    Dam that looks like a good eggs benedict ;)

    Oh, and congrats :)

  • http://www.buddhacentric.com Richard Riley

    Congrats!! Sounds like 2011 is going to be an amazing year for all of you guys. Keep up the great work and I can wait to see what the next couple of months have in store for this site. I think it is really great that you’ve decided to open up about your business and let us fellow entrepreneurs get a sneak peak on how to run a million dollar + business empire. Keep on keepin’ on!

  • http://www.buddhacentric.com Richard Riley

    …and obviously, the ‘I can wait’ should be ‘I can’t wait’… : )

  • http://www.tropicalmba.com Dan

    Thanks Richard, I’m really looking forward to it I think it can improve the conversations we have with other entrepreneurs as well. First things first: not an empire! …. yet :D

  • http://www.tropicalmba.com Dan

    My food photography has a long way to go !

  • http://www.tropicalmba.com Dan

    :D its gonna be a good year.

  • http://joelrunyon.com/two3 Joel Runyon | [BIT]

    Well I’m glad people are getting something out of it :)

  • http://www.lifestylebusinesspodcast.com/ Ian

    Thanks Chris, super bummed about the motorcycle trip.. I was looking forward to getting together. Hope to meet sometime soon.

  • http://thevceo.com Ian Borders

    Congrats! Balla! Look forward to watching you guys tear it up in 2011!

  • http://www.seanogle.com Sean

    Also, digging the HDR – just need to photoshop the plane and cars out :)

  • http://damianthompson.com Damian Thompson

    Great Post, very excited for you!

    Sorry we didn’t connect when I was in NY, Brooklyn was crazy with snow the few days I was there…

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  • http://www.tropicalmba.com Dan

    Thanks Ian! Same goes to you.

  • http://www.tropicalmba.com Dan

    Hehe I 80/20’d it, I can’t figure out those types of programs! It’s amazing how PRO HDR made me actually enjoy taking photos for the first time every, outside of you teaching me how to use your SLR, all my stuff has just looked nasty so I never enjoyed it much. 2 bucks made all the difference.

  • http://www.tropicalmba.com Dan

    Hey no problem at all, we were all holed up too it was a good time. Next time!

  • JGallic@31ways.org

    Dan,

    Good luck with the purchase of your own company. I just did a similar thing and bought out my partners from http://www.31ways.org. It was hard (and expensive) but it was worth it.

    I look forward to hearing more from you in the upcoming months!

  • http://www.tropicalmba.com Dan

    Good luck to you as well! Thanks for dropping by to say hi.

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