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. Built To Sell by John Warrillow, , available at Book Depository with free delivery worldwide. This is a book summary of Built to Sell by John Warrillow. Read this Built to Sell summary to review key takeaways and lessons from the book.
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You should always run a company as if it will last forever, and yet you should also strive constantly to maximize bulit 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.
Built to Sell: Creating a Business That Can Thrive Without You
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. Relying too heavily on one client is risky and will turn off potential joohn. Make sure that no one client makes up more than 15 percent of your revenue. 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.
Built to Sell: Creating a Business That Can Thrive Without You by John Warrillow
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 kohn 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 dell to a standardized offering even if it means you and your employees will have to forgo a bonus that year.
Built To Sell
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 sarrillow 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. 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.
Built to Sell – Creating a Business That Can Thrive Without You
Instead, use a simple stay bonus that offers the members of your management team a cash reward if you sell your company. Pay the warrilllow in two or more installments only to those who stay so that you ensure your key staff stays on through the transition.
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