My Conversation with a Spider

I had a guest in the shower this morning.

Above my head, in the corner to the left, I spotted my little guest, apparently hard at work, spinning a tiny web where the white tiles converge.

Unfortunately, there were no messages deftly woven into the web, just an air of focus as this little one went about their business undistracted by the spray of my shower, the steam, and the aromas of shampoo and soap.

“Do what’s in front of you,” seemed their mantra as they did the work that spiders do. I responded to their single focus with a mini-fist pump and wished them great success at being all the spider they could be.

I then focused on getting as fresh and clean as possible before toweling off and finishing my morning routine.

Hours later, seated at my desk, I thought of that little creator as I reflected on all the things business owners face as they move through their day.

Marketing, networking, lead generation, customer acquisition, customer service, follow-through, follow-up, PR, technology, social media, product development, creation, delivery…. the list goes on and on.

And when the thought of selling a business occurs to an owner, the list of things to do, know, consider, and document expands exponentially. Records, systems, procedures, and manuals outline how the business does what it does; it is a lot.

As is often the case with questions posed by my coaching clients, I dive into my library to see what book or books I have and can share or which I need to pick up, read, and then be able to communicate.

In light of the recently posed question, "Where do I start to prepare my business to sell" I pulled a gem off the shelf. It's a classic, and after reviewing the content (and summarizing it for you below), I recall why this is such a classic.

Here’s my shorthand summary:

John Warrilow's book "Built to Sell" is a business book focusing on creating a valuable and sellable company.

Building a Sellable Business: the book emphasizes the importance of building a business not solely dependent on the owner but rather one that can operate independently and generate consistent revenue and profits. Much is made of the need to create systems and processes that can be replicated and scaled, reducing reliance on the owner's involvement in day-to-day operations.

Developing a Unique Selling Proposition (USP): In this discussion, he emphasizes the importance of identifying and leveraging a unique selling proposition (USP) that differentiates a business from its competitors. He provides practical guidance on identifying and communicating a USP that resonates with customers and creates value in the market. I’m a big fan of his practical breakdown of this topic with clear “how to” moments. Every business owner should read this section.

Creating a Reliable Customer Base: He then highlights the significance of developing a loyal customer base that generates recurring revenue. His strategies for building long-term customer relationships, creating subscription-based models, and reducing customer concentration risk to increase the business's overall value make for pages of notes.

Building a High-Performing Team: He emphasizes the importance of building a capable and autonomous team that can operate the business without heavy reliance on the owner. He dips into how to recruit, train, and retain top talent and how to delegate responsibilities effectively to create a high-performing team. This area might need some refreshing in light of some of the recent shifts we've witnessed in the business world, but the core concepts are solid.

Focusing on Financial Performance:?Here’s a dive into understanding and optimizing the financial performance of a business to maximize its value. Low-hanging (but important fruit) are improving profitability, managing cash flow, and maintaining clean financials to make the company more attractive to potential buyers.

Planning for Exit: He explores the importance of having a clear exit strategy and planning for it from the early stages of building a business. For anyone contemplating selling a business, there are insights on preparing for the eventual sale, including valuing the business, finding potential buyers, and negotiating a favorable deal.

The author then tells a fictional story that paints a clear picture of the approach he describes. The story is interesting because it touches on many business owners' concerns, so it's worth checking out.

Overall, "Built to Sell" provides practical advice for entrepreneurs and business owners on how to build a valuable and sellable business by focusing on creating systems, developing a unique selling proposition, building a loyal customer base, nurturing a high-performing team, optimizing financial performance, and planning for exit.

If you own a business, you should have this on your shelves,?pages filled with notes and highlights, with many dogeared. Well, that's how my copy looks.

Here’s to a high valuation and a successful sale!