Built to Sell

About the Author

John Warrillow is a seasoned entrepreneur and a recognized expert in small business and entrepreneurship. His extensive experience in building and selling businesses, combined with his role as a radio host interviewing hundreds of entrepreneurs, has provided him with unique insights into what makes a business truly valuable and sellable. Warrillow’s journey began with his own company, Warrillow & Co., which became a significant player in the small business world before being sold in 2008. The company produced detailed research papers on small businesses and organized conferences that facilitated connections between Fortune 500 companies and smaller businesses.

Warrillow’s firsthand experience in selling a business and his deep understanding of the entrepreneurial landscape make him a credible and authoritative voice on the subject. His ability to distill complex business concepts into practical, actionable advice has helped countless small business owners transform their companies into sellable assets. As an author, Warrillow’s writing is not just informative but also inspirational, encouraging business owners to envision a future where their companies thrive independently of their direct involvement.

Main Idea

In "Built to Sell," John Warrillow posits that the key to creating a valuable and sellable business is to build one that can operate independently of its owner. He argues that even if selling the business isn’t an immediate goal, structuring it to run without the owner maximizes its potential for high profit margins, low risk, and significant growth. Warrillow presents his advice through an extended, hypothetical narrative that guides the reader through the process of developing, managing, and ultimately selling a small business.

The book is structured to provide a step-by-step approach to building a business that is attractive to potential buyers. Warrillow’s methodology involves finding a scalable specialty, generating positive cash flow, hiring the right salespeople, building a capable management team, and navigating the complexities of selling the business. Along the way, he offers practical advice and real-world examples to illustrate his points, making the process accessible and achievable for small business owners.

Table of Contents

• Why You Should Build a Sellable Business
• What Makes a Business Sellable
• Step 1: Find Your Scalable Specialty
• Step 2: Generate Positive Cash Flow
• Step 3: Hire the Right Salespeople
• Step 4: Build a Team of Managers and Incentivize Them to Stay
• Step 5: Find the Right Company to Help Sell Your Business
• Step 6: Inform Your Managers
• Step 7: Accept an Offer

Why You Should Build a Sellable Business

Warrillow begins by explaining why every business owner should aim to build a sellable business. He asserts that a sellable business is inherently valuable because it possesses qualities that investors look for: high profit margins, low risk, and room for growth. These attributes are beneficial to any business, regardless of whether the owner plans to sell.

Moreover, a sellable business provides options. Even if selling the business isn’t an immediate goal, circumstances can change. Personal life events, shifts in the market, or a change in the owner’s interests can all lead to a situation where selling the business becomes desirable or necessary. Knowing that the business is sellable at any time gives the owner flexibility and peace of mind.

"A business that can run without you is a business that can grow, scale, and ultimately be sold for a premium." – John Warrillow

Building a sellable business also benefits the owner by reducing the personal toll of running the business. Many small business owners become so intertwined with their companies that the business cannot function without them. This dependence can lead to burnout, as the owner is unable to take a break or delegate responsibilities. By creating a business that can operate independently, the owner can enjoy a better work-life balance and reduce stress.