How To Structure Your Business So It Can Survive Without You

According to Warrilow, the number one mistake entrepreneurs make is building a business that relies too heavily on them. This is a fact he shared in his book, “Built to Sell - Creating a Business That Can Thrive Without You”.

Problems associated with running a business that relies too much on you include but not limited to - working too much which amongst other things can result in being both an absent parent and spouse. Let's face it, this is a common problem for business owners today. The moment you are taking a well-deserved vacation, everything could fall to smouldering in your absence.

This also becomes a problem if and when you decide you want to sell your business. This is because no one will trust that the company will stand on its own.

In this book, John tells the story his story of how he struggled with these same problems in his own business - He talked at length about how everything changed when he discovered that striving constantly to maximize his company’s value by building in the qualities that allow it to be sold at any moment for the highest price, was actually the best way to make it last forever.

Reading it, you’ll find John's well-thought guidelines on how to improve your business health and ultimately making it sellable and able to survive your exit.

I’ll be listing just a few of em, you can find the book on amazon.

• Always build a company to be sold even if you have no intention of cashing out or taking a step back
• Don't try to do everything yourself. Generalization can and will kill you. If you focus on doing one thing perfectly and hiring specialists in other areas, the quality of your output will improve and you will stand out from your competitors.
• Relying heavily on one client is risky and will turn off potential buyers. Make sure that no one client makes up more than 15 per cent of your annual revenue.
• Processes save businesses. Having well-structured processes makes it easier to pitch and puts you in control. Be clear about what you’re selling, and potential customers will be more likely to buy your product.
• Avoid cash flow problems. Try to standardize your service, charge upfront, or use progress billing to create a positive cash flow cycle.
• Don’t be afraid to say no. Prove that you’re serious about specialization by turning down work that falls outside your area of expertise. The more people you say no to, the more referrals you’ll get to people who need your product or service.
• Hire sales reps who are good at selling products, not services. These people will be better able to figure out how your product can meet a client’s needs rather than agreeing to customize your offering to fit what the client wants.
• Ignore - if you can - your profit-and-loss statement in the year you make the switch to a standardized offering even if it means you and your employees will have to forgo a bonus that year.
• Build a management team and offer them a long-term incentive plan that rewards their personal performance and loyalty. This will guarantee your team puts in more work as they know their better performances profits, everyone, more.
• Find an adviser or a mentor. Make sure they know your industry.
• Write a three-year business plan with what is possible for your business. Remember to think and scale big.
• If you want to be a sellable, product-oriented business, you need to use the language of one. Remove any references that reveal you used to be a generic service business from all your communication.

The list goes on - You don't necessarily need to be looking out to sell before you read John Warrilow book. Applying some of these principles to your business will only seal your place in your industry for the long haul. It will also help you take time for other projects and family without having a chip on your shoulder which says "my business is failing" anytime you not there.