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New entrepreneurs spend so much time trying to make their offer scalable, they forget to make i
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0:00Who here has thought about starting a software for your business to make it more sellable? Get hands raised. [music] Okay, fantastic. Here's why it's a terrible idea. Software does not inherently make a business >> [music] >> valuable. There are economics that software often has when done right that can be valuable, which is growth, typically virally, ideally, gross margins, so like additional customers cost very little and there's high profit there, and revenue retention. Like, if [music] people get fully integrated on a CRM, it's very likely that they will stick for stick with it for an extended period of time. Those features are still the things that make the business valuable. If you just
0:28>> [music] >> add software in, you will not become a software company. You will not get a software multiple. You will not become something that is more sellable. >> [music] >> It is only if you accomplish building a software that is exceptional that you will have an exceptional business that becomes sellable. [music]