Key Themes:
Business, Entrepreneurship, Selling your Business
Summary:
Built to Sell by John Warrillow explores the mistake that most entrepreneurs make – building a business that relies too heavily on them. This provides them with a challenge when the time comes to sell, buyers have no confidence that the company can stand on its own, even if it’s profitable. However, by focusing on three things: teachable, valuable and repeatable, you can make your business saleable. To illustrate this, Warrillow introduces us to Alex, a fictional business owner who is struggling to sell his advertising agency. Alex turns to Ted, an entrepreneur and family friend, who helps him take his business through this process, so it’s fit for sale.
Content Overview:
Alex Stapleton is the owner of a small advertising agency that is over-reliant on one client, heavily dependent on his day-to-day involvement, and is no different to any of its competition. When he decides to sell his business, he contacts Ted Gordon – an expert in growing and selling businesses – who tells him that his business is worth nothing in its current state. Throughout the book, Ted mentors Alex in how to change his business so that it becomes more focused, less reliant on him, systemised, cash-rich and valuable.
The core concepts cover:
– Why you should always run a company as if it will last forever – constantly looking to maximise its value
– Even if you have no intention of selling or stepping down, the best businesses are sellable;
– Make your business function without you, will create a valuable asset;
– Do one thing well, become a specialist in that area and your quality of work will improve and you will be head and shoulders above the competition;
– Ensure you don’t have a client that takes up more than 15% of your revenue.
However, this is more than just a story – it has practical advice and tactics throughout, that you could implement in your own business, to transition it from worthless to valuable within a few years.
Rating: 8.5/10
In this book, Warrilow shows the full process of turning around a ‘jack of all trades’ generalist agency, dependent on its owner that has little or no value into a process-based specialist that is ready to sell. Each of the steps the fictional The Stapleton Agency take can be easily applied to any industry sector or business and it’s highly recommended.
Readability: 10/10
Warrilow uses a story telling method to demonstrate the key principles of the book, using the fictional The Stapleton Agency. This is an easy and enjoyable book to read with sound and actionable advice.
Does what it says on the tin: 9/10
Yes definitely. Don’t be put off by the fact that it focuses on an ‘agency’ – the core concepts and tactics can be applied to any sector / business
