When you’re running a profitable trades or contracting business, one of the things you’d like to know is if it’s saleable. The problem, however, with the majority of trades businesses is that owners are at the center of it all. And while this kind of business setup works well for you profit-wise, the truth is that it’s not going to amount to anything at all during selling time. How then do you prepare your business for sale?
In this week’s podcast episode, I have a fantastic conversation on the topic of preparing trade or contracting businesses for sale with John Warrilow. He covers three steps in making your business available to acquire – TVR, Productise, and Systematise. We also talk about what is in the mind of a person looking to acquire a business.
If you are looking forward to selling your business in the future, this is an episode you will definitely benefit from.
What’s Discussed In This Episode:
0:00 The Elevation Program
6:17 John’s background
8:18 When John wrote the books he is known for
9:50 What John is currently doing
12:59 Owner-centered businesses are profitable but not transferable
13:49 First step in making your business valuable to acquire
14:09 Teachable, Valuable, Repeatable (TVR)
15:20 Matt shares an example of the TVR process
20:27 Acquirers want recurring revenue
21:09 Installation revenue & monitoring revenue (security campaigns)
22:01 Value is not created in the actual doing of the work
23:19 Paradigm shift in the thought process
23:54 The secret to moving your headspace into recurring revenue
27:50 The Trojan horse effect
30:00 Re-engaging with your database
32:21 How a recurring subscription maintenance plan is helpful for your business
34:28 Managing the finances of a recurring model
38:31 Communicating to a client who isn’t having a problem
41:08 Productize
47:21 Systematise – creating processes, SOP’s
51:11 What acquirers want to know in terms of processes
About Our Guest
John Warrillow is the founder of The Value Builder System™, a simple software for building the value of a company used by thousands of businesses worldwide. Offered by a global network of independent advisors known as Certified Value Builders, The Value Builder System™ incorporates several diagnostic tools, including the Value Builder Score. Those businesses that achieve a Value Builder Score of 90 or greater are worth double the average-performing business. His best-selling book Built to Sell: Creating a Business That Can Thrive Without You was recognized by both Fortune and Inc. as one of the best business books of 2011 and has been translated into 12 languages. John is the host of Built to Sell Radio, ranked by Forbes as one of the world’s 10 best podcasts for business owners. In 2015, John wrote another best-selling book, The Automatic Customer: Creating a Subscription Business in Any Industry. John completes the trilogy with his latest book, The Art of Selling Your Business: Winning Strategies & Secret Hacks for Exiting on Top. Prior to founding The Value Builder System, he started and exited four companies, including one acquired by a public company. He lives with his family in Toronto. You can follow John’s work by signing up at BuiltToSell.com.
Resources:
- The Opportunity Assessment (FREE GIVEAWAY FOR A LIMITED TIME) https://tradie.wiki/grow
- Join our global community of 6000+ trade professionals https://www.facebook.com/groups/TheSiteShed
- Tradie Web Guys ‘automation’ – (https://www.tradiewebguys.com.au/automation/)
- Tradie Web Guys’ Apply (qualification) page (https://www.tradiewebguys.com.au/apply/)
- Check out the Built to Sell website www.BuiltToSell.com
- Follow John and Built to Sell on Twitter
- @JohnWarrillow
- @BuiltToSell
Books mentioned in this episode:
- The Automatic Customer https://amzn.to/3uL5AcI
- Built to Sell https://amzn.to/3y6UjFM
- The Art of Selling a Business https://amzn.to/3oe6zj8
- SYSTEMology https://amzn.to/34kxRMT
Connect with me on LinkedIn. For more podcast episodes, you may also visit my website. Tune in and subscribe to The Site Shed: You can also listen to The Site Shed on Apple Podcasts, Spotify, and Stitcher.
Thank you for tuning in!
If you enjoyed this podcast and this series, please take 5 to leave us a review:
