Shelves: business-books Amazing book. I was recommended to read this because it help shapes your head around what you are building in your business. Really great lessons learned and makes the impossible seem possible. Well worth the time. If you specialize, you can hire specialists and improve the quality of your work. You need to build a business where the majority of your proceeds get paid up front.
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Print Kindle Audiobook The Book in Three Sentences According to Warrillow, the number one mistake entrepreneurs make is to build a business that relies too heavily on them. However, by pursuing three criteria—teachable, valuable, repeatable—you can make a business sellable. The Five Big Ideas You should always run a company as if it will last forever. The best businesses are sellable—even if you have no intention of cashing out or stepping back anytime soon.
If you focus on doing one thing well and hire specialists in that area, the quality of your work will improve and you will stand out from your competitors. Make sure that no one client makes up more than 15 percent of your revenue. Built to Sell Summary You should always run a company as if it will last forever, and yet you should also strive constantly to maximize its value, building in the qualities that allow it to be sold at any moment for the highest price buyers are paying for businesses like yours.
The best businesses are sellable, and smart business people believe that you should build a company to be sold even if you have no intention of cashing out or stepping back anytime soon. Relying too heavily on one client is risky and will turn off potential buyers. Owning a process makes it easier to pitch and puts you in control. Avoid the cash suck.
Take some time to figure out how many pipeline prospects will likely lead to sales. This number will become essential when you go to sell because it allows the buyer to estimate the size of the market opportunity. Two sales reps are always better than one. Often competitive types, sales reps will try to outdo each other. And having two on staff will prove to a buyer that you have a scalable sales model, not just one good sales rep.
Hire people who are good at selling products, not services. Ignore your profit-and-loss statement in the year you make the switch to a standardized offering even if it means you and your employees will have to forgo a bonus that year.
You need at least two years of financial statements reflecting your use of the standardized offering model before you sell your company. Build a management team and offer them a long-term incentive plan that rewards their personal performance and loyalty.
Find an adviser for whom you will be neither their largest nor their smallest client. Make sure they know your industry. Avoid an adviser who offers to broker a discussion with a single client. You want to ensure there is competition for your business and avoid being used as a pawn for your adviser to curry favor with his or her best client. Think big. Write a three-year business plan that paints a picture of what is possible for your business. Remember, the company that acquires you will have more resources for you to accelerate your growth.
If you want to be a sellable, product-oriented business, you need to use the language of one. Instead, use a simple stay bonus that offers the members of your management team a cash reward if you sell your company. Pay the reward in two or more installments only to those who stay so that you ensure your key staff stays on through the transition.
BUILT TO SELL radio
FOR BUSINESS OWNERS
Built to Sell: Creating a Business That Can Thrive Without You
Built to Sell by John Warrillow