Built to Sell: Creating a Business that can Thrive Without You

John Warrillow

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In Circulation

According to John Warrillow, the number one mistake entrepreneurs make is to build a business that relies too heavily on them. Thus, when the time comes to sell, buyers aren't confident that the company-even if it's profitable-can stand on its own. To illustrate this, Warrillow introduces us to a fictional small business owner named Alex who is struggling to sell his advertising agency.

Alex turns to Ted, an entrepreneur and old family friend, who encourages Alex to pursue three criteria to make his business sellable: * Teachable: focus on products and services that you can teach employees to deliver. * Valuable: avoid price wars by specialising in doing one thing better than anyone else. * Repeatable: generate recurring revenue by engineering products that customers have to repurchase often.

What will you learn from this book

  1. Building a Sellable Business: The book emphasizes structuring a business with the end goal of selling it in mind. It encourages entrepreneurs to create systems and processes that make the business less dependent on the owner's day-to-day involvement.

  2. Creating Scalability: Focusing on scalability involves developing products or services that can be easily replicated and delivered consistently without the owner's direct intervention.

  3. Standardizing Operations: Establishing clear processes and systems allows the business to function efficiently even without the owner's constant oversight. This helps in streamlining operations and reducing reliance on specific individuals.

  4. Identifying the Unique Selling Proposition (USP): Understanding what makes the business unique and differentiating it from competitors is crucial. Highlighting and leveraging this USP can make the business more valuable in the market.

  5. Building a Strong Management Team: Cultivating a capable and autonomous management team enables the business to function smoothly without the owner's constant involvement. This also makes the company more attractive to potential buyers.

  6. Reducing Owner Dependency: The book stresses the importance of reducing the owner's role in day-to-day operations. A business that doesn’t rely heavily on the owner's presence or expertise tends to be more sellable.

  7. Improving Financial Performance: Consistently demonstrating strong financial performance and growth potential makes the business more appealing to potential buyers.

  8. Customer Diversification: Having a broad customer base reduces dependency on a few clients, making the business more stable and attractive to buyers.

  9. Planning for Exit: Warrillow emphasizes the importance of planning for the eventual sale of the business from the outset. Having a clear exit strategy helps in structuring the business accordingly.

  10. Continuous Improvement: Encouraging a culture of ongoing improvement and innovation within the business keeps it competitive and enhances its value.

Language English
ISBN-10 978-1-59184-397-9
No of pages 151
Font Size Medium
Book Publisher penguin
Published Date 28 Apr 2011

About Author

Author : John Warrillow

1 Books

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