How EOS and EO Benefit Your Business Exit Strategy With Chris Carey

Up Arrow Podcast · with Chris Carey · August 29, 2023 · 64 min

Summary

For ecommerce operators eyeing a future exit, this episode with Chris Carey of Modern Automotive Performance (MAP) offers a strategic roadmap. Carey shares how implementing the Entrepreneurial Operating System (EOS) and leveraging peer groups like Entrepreneurs' Organization (EO) were crucial in structuring his business for a successful and graceful acquisition. Learn how to proactively prepare your company for sale, reduce overhead, and increase revenue to maximize your valuation without burning out.

Key takeaways

• Implement the Entrepreneurial Operating System (EOS) early to create repeatable processes and clear organizational structure, making your business more attractive and manageable for future acquisition.
• Actively participate in peer groups like Entrepreneurs' Organization (EO) for mentorship, accountability, and diverse perspectives on growth and exit strategies.
• Begin exit planning well in advance (3-5 years) by focusing on increasing revenue and reducing overhead to maximize business valuation and ensure a smooth transition.
• Develop a robust product line and strong brand identity to differentiate your business and increase its inherent value beyond just resale of existing products.
• Prioritize customer service as a key differentiator to attract and retain clientele, which directly contributes to sustained revenue growth and a more appealing business for potential buyers.

Themes

Topics covered

Episode description

Chris Carey is the Co-founder of Modern Automotive Performance (MAP), a high-growth e-commerce manufacturing company serving the automotive industry. In 2006, Chris launched the company using a bedroom closet to store inventory, and by 2011, MAP ranked #403 on the Inc. 500 list of fastest-growing privately held companies in the US. He sold MAP to Enthusiast Enterprises in 2020, generating $44 million in revenue.  His thoughts regarding entrepreneurship, e-commerce, and leadership development have been published in the Wall Street Journal, Inc. magazine, and Minnesota Business. Chris is a General Partner at Traction Capital, where he adds value to portfolio companies, assists with acquisition initiatives, and furthers his knowledge of venture capital and private equity. In this episode… The process of building and launching a business takes such an emotional, physical, and mental toll that most early-stage entrepreneurs wouldn't dream of selling their company. As the years go by, it's inevitable for business owners to consider the next phase for themselves and their organization. If selling your business is in your best interest, how can you prepare for a seamless transition?  Entrepreneurs are advised to begin the exit process well in advance to ensure the company is prepared and ready to hand off to the succeeding owner. Chris Carey, a post-exit entrepreneur, didn't hesitate to begin his due diligence upon recognizing his company's valuation had peaked and he was ready for a new challenge. In doing so, he gave himself adequate time to increase revenue and reduce overhead before burning out. Chris attributes his graceful business exit to a structured EOS and a supportive peer group through EO — and he recommends fellow entrepreneurs take advantage of these resources.  On this episode of the Up Arrow Podcast, William Harris welcomes Chris Carey, the former Co-founder of Modern Automo

Frequently asked about this episode

What does this episode say about founder & leadership?

Implement the Entrepreneurial Operating System (EOS) early to create repeatable processes and clear organizational structure, making your business more attractive and manageable for future acquisition.

What does this episode say about supply chain & operations?

Actively participate in peer groups like Entrepreneurs' Organization (EO) for mentorship, accountability, and diverse perspectives on growth and exit strategies.

What does this episode say about finance & fundraising?

Begin exit planning well in advance (3-5 years) by focusing on increasing revenue and reducing overhead to maximize business valuation and ensure a smooth transition.

What does this episode say about founder & leadership?

Develop a robust product line and strong brand identity to differentiate your business and increase its inherent value beyond just resale of existing products.

What does this episode say about founder & leadership?

Prioritize customer service as a key differentiator to attract and retain clientele, which directly contributes to sustained revenue growth and a more appealing business for potential buyers.

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