239: How to Sell Your Business with John Warrilow | The Sweaty Startup
Welcome to the top entrepreneur podcast! In this episode, we welcome best-selling author and entrepreneur John Warrilow to the show to discuss how to sell your business and why most entrepreneurs fail in business. Many believe that to sell a successful company it needs to offer something entirely new or unique. However, there are several factors to consider when selling your company.
Any entrepreneur is eager to start a company and then sell when the right buyer comes along or the time is right. The problem is more companies are trying to sell than buyers are trying to buy. That means, as a business owner, you have to compete against other sellers. So what is it that buyers are looking for in a company?
For one, can you create a company that is not dependent on you and could survive if you weren’t there? John Warrilow suggests entrepreneurs compare themselves to a parent trying to raise their child in being self-sufficient. As an entrepreneur, you should view yourself as the parent of your business rather than a CEO. Your goal is to make a company that is not dependent on you and can make its own decisions. An acquirer will offer less if your company struggles to do these things, especially if it can’t make stable revenue. Being able to mitigate the economic risks associated with starting a company can be challenging, which is why I developed this free online business course to help teach you some of the basic principles of successful entrepreneurship.
Another reason buyers may walk away is because your company’s niche is not simplified enough. Although you want to stand out as a business, if you focus on too many services, a buyer, like a customer, may not know what it is that you do. John shares that you want to find a service that you can teach to your employees. It not only has to be valuable to customers, but it needs to be repeatable, meaning customers need it regularly. If your service is too commoditized (lawn care service, snow removal, etc.,) this may lower the value of your company in the eyes of a potential buyer. But, if you can take a commoditized service and one-up, offering something different, you’ll stand out and have a better chance of selling.
The biggest challenge is finding and hiring the right employees–ones who can make your business the self-functioning unit it needs to be and get a customer to buy with very little effort on your part. The other issue is hiring employees who can solve problems without having to call you. As a business owner, you want to build a company that you can walk away from while it still makes you money because your employees know how to run it on their own. It’s one of the most valuable things a business owner and entrepreneur can invest in. Check out my Hiring Course below. It’s one of the best online business courses available out there. Learn how to hire and train people to help you take a step back from business.
Three Key Takeaways
- Simplify your niche. Investors and buyers are more likely to walk away if your company is a conglomerate of too many services.
- Offer a unique service and one-up it. What sets your business apart from the rest? What is it willing to do that other businesses won’t?
- Your business needs to be self-functioning. Your team is an essential part of your company that keeps it going and earns revenue while you sleep. If your team relies too heavily on you for solutions, your business is going to struggle. Discover how to hire and train your employees to set your business up for success with my Hiring Course!
Visit our online business courses page to learn how to grow and build your business to make you more money. Or, join our community of like-minded individuals who are seeking to improve every aspect of their business by visiting https://sweatystartup.com/rec/.
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How to Sell Your Business
- Created by John Warrilow, access the tools you need to grow and accelerate your business.
- 8 Key Drivers Video Series: Discover the eight attributes that drive business value.
- 9 Subscription Models eBook will teach you nine different subscription models that you can adopt to earn recurring revenue no matter your business type.
- The Art of Selling Your Business Workbook. Ask yourself the right questions before you sell your business.
Go to builttolearn.com/sweaty today to access your free tools!