By Rieva Lesonsky
Let’s face it: If you’re like most small business owners, you dream of someday selling your business for a big payday–or at least a comfortable retirement. How realistic is that dream? Well, if you read–and learn from–Built to Sell, you may be able to turn this dream into reality. And by doing so, you’ll be ahead of most small business owners–who discover too late that, even if their businesses are profitable and successful by most measures, they’re not salable.
Why not? If your business can’t run without you, John Warrillow explains in Built to Sell, its desirability for a buyer is limited. Warrillow knows his stuff–he’s started and sold four businesses of his own–and in Built to Sell he explains how you can maximize your business’s value by positioning it to run without you.
Built to Sell tells the story of Alex Stapleton, an ad agency owner who has reached a plateau. His company is profitable, but it’s also a roller-coaster of ups and downs, deadlines that never let up, and clients who all want a piece of him. In his 50s, Alex is tired of working never-ending hours and ready to spend more time with his family. Warrillow says Alex is a composite of real business owners he’s worked with, and any entrepreneur is sure to recognize parts of him- or herself in Alex’s situation.
Alex’s friend Ted Gordon, who is a successful entrepreneur, decides to show Alex how to make his business “sellable.” Built to Sell uses a service business as its example—a smart move, since service businesses often depend on their owners’ active involvement for success.
First, Ted explains how to “product-ize” the business so it’s more appealing to a business buyer. Next, he shows Alex how to come up with systems, improve cash flow, find a niche and ultimately enable his business to run without him.
Along the way, Alex has to make some tough choices, including turning down his former dream client, firing his biggest client and dealing with nightmare employees. But the hard choices pay off in a business that becomes successful beyond Alex’s imaginings—and even gives him some free time to spend with his family.
Wiping out any notion you may have that selling a company is quick and easy, Warrillow spends nearly 0ne-third of the book on the actual sales process. He guides the reader through the ins and outs of selecting the right business broker, surviving the due diligence process and choosing the perfect buyer.
Although I don’t normally like the parable format for business books, it’s very effective here. Warrillow draws the reader into Alex’s choices, making information that could become dull and dry interesting and easy to understand.
An eight-step implementation guide, 16 tips and additional resources round out the book. Whether you’re contemplating selling or simply want to build value in your business, Built to Sell is a practical, valuable guide that will change the way you think about your business.
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