The fastest way to expand your business is to buy another company.
It's a risky move involving piles of documents and a horde of well-compensated bankers and lawyers.
The former is digestible, the latter will cost you an arm and a leg.
That’s why when Google founder Larry Page looks at a potential company to acquire, to judge whether it’s worth his time and money or not, he asks a simple question:
Is it something you will use once or twice a day and does it make your life better?
That's it.
He calls it The Toothbrush Test.
Instead of diving into the nitty-gritty of financials, he cares about long-term value.
It rules out a plethora of companies.
The sentiment of the test remains valid for me and should also be for you.
If your product or service solves a problem so well that the people you want to serve can’t go a day without it, then your company becomes part of their lifestyle and you have the potential of owning a billion-dollar company.
Next time you’re thinking about building a business, start with the toothbrush test.
I know, you're no Larry Page.
Neither am I.
But who better to emulate?
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