Built to Sell

According to John Warrillow, the most common mistake entrepreneurs make is to build a business that is overly reliant on them. As a result, when the time comes to sell, buyers are unsure that the company—even if profitable—can stand on its own. To demonstrate, Warrillow introduces us to Alex, a fictional small business owner who is attempting to sell his advertising agency. Alex approaches Ted, an entrepreneur and old family friend, who advises him to focus on three criteria to make his business sellable: * Teachable: concentrate on products and services that can be taught to employees. * Useful: avoid price wars by specializing in one thing better than everyone else. * Repetitive: generate recurring revenue by designing products that customers must repurchase frequently.