1. Copyright (C) 2011, EDUMETRIX INC. 1 Fund  G r o w  SELL Your Business Context John J. Stuppy, MBA, Ph.D. john@edumetrix.com 410-935-0936

2. 2 Copyright (C) 2011, EDUMETRIX INC. Where I’ve Been (TutorVista.com): Fund  Grow  Dominate  Sell  President, TutorVista.com  $213M sell Fund Raised $30M+ from Sequoia, others Grow Grew 22% a month over 2 years Dominate #1 online tutoring co in 3 years Sell Sold to Pearson  What I’ve learned? Tools, relationships, strategies, planning, insight, etc. make a huge difference

3. 3 Copyright (C) 2011, EDUMETRIX INC. What Do YOU Want To Do?  Operate a professional hobby?  Fine-tune your business for profit?  Raise $: hire, market, develop, ?  Grow more than competition?  Region, nation, global expansion?  Dominate the market?  Move Up  Then Out (Sell)?

4. 4 Copyright (C) 2011, EDUMETRIX INC.

5. 5 Securing Funding  Type of funding Organic growth from profit Debt (loan) Equity  Source of funds Funded development Grants Friends & Family Angel investors Venture Capital Private Equity

6. 6 Copyright (C) 2011, EDUMETRIX INC. FUNDING Lessons Learned (for Startups or Mature Companies)  The CEO, consummate sales person Understand sources of value & model Think ahead of time: not on your feet  Buy low, sell high Acquisition cost vs. lifetime value  “In 5 years…” (come back in 5 years!)  Wrangling the deal vs middleman  Compelling pitch ‘deck’ (front-loaded)

7. 7 Copyright (C) 2011, EDUMETRIX INC. FUNDING Lessons Learned (continued)  Management, mgmt., mgmt.  Credible, attention-getting financials  Timing, business/market momentum  Bidding war (multiple term sheets)  Big firms: Good news – bad news  Funded development vs. equity  Create baseline valuation

8. 8 Copyright (C) 2011, EDUMETRIX INC. EDUMETRIX Strategic Opportunity Map TM  Marketing  Sales  Product development  Strategic partnerships  Funded development  Leadership opportunities  Consultative selling  Recommendation/Priorities

9. 9 Copyright (C) 2011, EDUMETRIX INC. Monitoring Growth Progress  Key Performance Indicators (KPI)  Dashboards

10. 10 Copyright (C) 2011, EDUMETRIX INC. Net profits ( EBITDA) Growth of net profits Predictability Risk How Much Is Your Business Worth?

11. 11 Copyright (C) 2011, EDUMETRIX INC. Where Are The Gaps? Business, Financial, Systems, etc.

12. 12 Copyright (C) 2011, EDUMETRIX INC. Are You Ready To Exit?  Exit Readiness analysis  Address in the short or long term depending on your game plan

13. 13 Copyright (C) 2011, EDUMETRIX INC. Planning and Modeling

14. 14 Copyright (C) 2011, EDUMETRIX INC. How Much Could It Be Worth? Valuation Enhancement Modeling

15. 15 Copyright (C) 2011, EDUMETRIX INC.

16. 16 Copyright (C) 2011, EDUMETRIX INC. Make The World Better... Do Well By Doing Good – And Enjoy !  CONTACT John Stuppy. john@edumetrix.com 410-935-0936