Built to Sell: Creating a Business That Can Thrive Without You (Summary)
Imagine building a successful business, working 80-hour weeks, and finally deciding to sell, only to be told it's worthless. That's what happened to Alex, the protagonist in this book. His marketing agency was profitable, but because every client relationship and key decision depended entirely on him, potential buyers saw no value in the business itselfâthey were just buying a stressful job. He was trapped by his own success.
Stop Selling Your Time; Start Selling a Product
To create a sellable company, you must shift from a customized service model that relies on your expertise to a standardized, repeatable product or service that others can deliver.
In the book, Alex's mentor, Ted, tells him to stop being a jack-of-all-trades marketing agency. Instead, he must focus on just one profitable serviceâlogo design for small businessesâand turn it into a standardized, tiered package that clients can buy like an off-the-shelf product.
Make Yourself Useless to Your Own Company
A business that depends entirely on its founder is just a high-stress job, not a sellable asset. The goal is to build systems and a team that can operate successfully without your daily involvement.
To prove his business could run without him, Alex is forced by his mentor to take a two-week vacation and completely disconnect. He had to create sales scripts, project management processes, and empower his team to handle everything, demonstrating the company's true value was in its systems, not just its founder.
Fire Yourself as the Chief Salesperson
Your business isn't truly scalable if you are the only one capable of bringing in new clients. You must build a repeatable sales process that a dedicated team can execute without you.
Alex hired two young salespeople and gave them a simple, repeatable process for finding and closing leads for his new, productized service. He had to resist his natural urge to jump in on sales calls, forcing them to learn and prove that the company could generate revenue without relying on its founder's charisma.
Own Your Cash Flow
To improve financial stability and reduce risk for a potential buyer, shift your billing model from invoicing after the work is done to collecting payment upfront. Predictable cash flow is a key indicator of a healthy, sellable business.
Instead of billing clients 30 or 60 days after a project was complete, Alex's new productized logo service required 50% payment upfront and the remaining 50% upon delivery. This dramatically improved his cash flow and made the business's revenue far more predictable and attractive to an acquirer.
Share this summary:
X Facebook Pinterest LinkedIn WhatsApp Reddit Email