Set Up Your Business to Sell
00:10 John Warrillow: When it comes to selling your business, I think there are some immediate things you've got to focus on. You've really got to make sure you're independent of anyone; employee, customer or supplier. When you leave the business, obviously, the business needs to continue on. And so that's probably the first big nut to crack, is how does the business succeed without you running it? The second thing to think about is recurring revenue. Again, when you leave, the business needs to continue on, and so you've got to create some sort of subscription-based, annuity-based revenue that an acquirer can come see is gonna continue to keep going after you leave. The third thing is the management team. So, obviously, you're a huge inspiration for the company. You've built it from scratch most likely, but at some point you've gotta get other people involved so that you can merchandise to a buyer that there are other people that are running your company. They'll plan to stay even if you don't.
JOHN WARRILLOW | Columnist | Sellability
John Warrillow’s new book, The Automatic Customer: Creating a Subscription Business In Any Industry will be released on February 5, 2015. John is also the author of Built to Sell: Creating a Business That Can Thrive Without You and the founder of The Sellability Score, a company dedicated to helping business owners improve the value of their company.