Kody Thompson, founder of Wrkpod, understands the ecommerce journey. He bootstrapped a web development company from a $250 startup into a multi-million dollar powerhouse generating over $5 million in profit. Today, we'll dissect his "build to sell" approach, equipping you to scale your ecommerce brand for a successful exit.

Time Stamp

[00:00] - Introduction To The Podcast[00:20] - Michael Veazey Introduces The 10k Collective Mastermind[01:04] - Welcome To The 10k Collected Podcast[01:34] - Introduction Of Cody Thompson From WorkPod[02:24] - Why Cody Started A Graphic Design Business[03:41] - Transition From Solo Designer To Subscription Business[05:12] - Developing A Subscription Model For Websites[07:07] - Lessons From Niching Down And Customer Response[08:34] - Creating A Win-Win Business Model[09:46] - Path To Exiting The Business[11:26] - Decision To Sell The Web Development Company[13:48] - Finding A Buyer And Preparing For Sale[15:49] - Building A Business Ready To Sell[18:02] - Learning From Mentors And Decision-Making Process[19:44] - Negotiating Flexibility In Business Contracts[21:38] - Lessons On Utilization In E-commerce[23:11] - Things To Do Differently In An Exit[24:51] - Importance Of Business Community And Support[26:24] - Introduction To WorkPod's Business Model[28:58] - Free Checklist For Outsourcing Tasks[30:23] - Closing Remarks And Mastermind Promotion

Building Your Foundation: From Passion Project to Scalable Business

Many ecommerce ventures begin as passion projects. Kody initially offered freelance graphic design services to support his volunteer work. However, his vision evolved. Recognizing the limitations of selling time for money, he pivoted towards a subscription-based web development model.

The "Aha" Moment: Identifying a Lucrative Niche & Building Recurring Revenue

Kody's turning point came when he realized the high cost of custom websites deterred small businesses. He observed a need within the fitness industry and pivoted again, creating website templates specifically tailored for gyms. This niche focus, combined with a subscription model, ensured recurring revenue and a scalable business.

Building a Business That Runs Without You: Systems, Documentation, and Delegation

Building to sell requires a business independent of your personal involvement. Kody achieved this by:

Systematizing processes: Creating clear workflows for all aspects of the business.

Detailed documentation: Documenting procedures for future reference and team training.

Clean financials: Maintaining accurate and up-to-date financial records.

Daily bookkeeping: Ensuring financial transparency for potential buyers.

The Power of Team: Building a Culture of Excellence

A strong team is fundamental to a thriving ecommerce business. Kody prioritized building a team he enjoyed working with, fostering a positive work environment. This translates into higher employee retention and a more attractive business proposition for potential buyers.

The Exit Strategy: Setting the Stage for a Lucrative Sale

Many entrepreneurs underestimate the importance of planning for an exit from the start. Here's why Kody built with the goal of selling:

Reduced reliance on personal time: A successful business generates revenue regardless of your daily involvement.

Reliable, recurring revenue: Predictable income stream attracts higher valuations from potential buyers.

Lower risk: A well-systematized business with a strong team mitigates potential risks associated with ownership changes.

Beyond Financials: The Importance of Preparations Beyond the Numbers

Kody built a business attractive to buyers in ways that go beyond just the bottom line. Here are two crucial considerations:

Data Room Readiness: Kody streamlined the due diligence process by having all necessary financial and operational documents readily available.

Strong Team: The quality and expertise of your team significantly imp...