Built to Sell Book Summary and Review | By John Warrillow

Entrepreneur, author, and public speaker John Warrillow is well known for his work on the idea of “Made to Sell,” which refers to creating a company that is intended to be sold in the future.

Warrillow offers useful guidance in this book on how to construct a company that appeals to potential purchasers, including building a scalable business model, a good team, and a great brand.

Moreover, Warrillow is a co-founder of The Value Builder System, a business that aids entrepreneurs in raising the value of their enterprises. Also, he has sold four of his own businesses.

Built to Sell Book Summary
Built to Sell Book Summary

John Warrillow examines the numerous elements that can influence an organization’s performance in Built to Sell, as well as how to create a successful firm without the owner. He wrote a fictional novel that chronicles the exploits of a fictitious entrepreneur named Alex Stapleton based on his vast business experience.

With Ted’s help, Alex was able to turn his company from a worthless asset to a lucrative $5 million enterprise. In addition, Warrillow offers readers a detailed roadmap so they can choose their own course of action.

A Worthless Business

The Stapleton Agency, an advertising firm with seven workers, belonged to Alex. Senior designer Sarah, who works for the firm’s client MNY Bank, contributed to a number of projects. In a meeting with John Stevens, the bank’s head of marketing, Alex displayed eight different brand mockups.

After their conversation, Alex told Sarah that in order to better the work she was doing for the bank, she needed to make certain changes. Sarah told him she was quitting the following day. Despite being the greatest designer in the industry, she was unhappy in her new position and was planning to go soon. Alex considered selling his business, too. The agency’s finances were in poor shape, and the other employees weren’t very skilled in any area.

Before making a significant choice, Alex visited with Ted, a successful businessman who had sold a number of enterprises. He explained to Alex that the business was struggling financially and was in a market with other businesses.

The Five-Step Design Methodology

The agency’s logo was the greatest thing the business could produce, and it was made using a five-step method. They began by asking the client about its objectives and then joking questions like, “What would a cookie taste like?” After that, the designers sketched ideas.

Before creating the final design, they first improved the logo in black and white after collecting the client’s comments. Ted proposed that Alex concentrate on logos because doing so would enable him to specialise.

Also, Ted advised Alex not to have a client who contributed more than 15% of the business’s overall revenue. In Alex’s situation, the client of the business, MNY Bank, provided 40% of the business’s revenue.

He subsequently produced a sell sheet outlining the steps involved in designing his logo. He then got in touch with a few of his former customers to ask them about it.

promoting the procedure

Ted advised Alex to learn how to perfect a procedure that would give him complete control over everything the business accomplishes. For instance, if the business started selling a product, it would demand upfront payment from customers. Also, Alex would need to recruit workers who could produce the same calibre of work if he wanted to sell the business.

Ted then advised Alex to write an instruction manual outlining the steps involved in designing his logo. He claimed that if it were perfected, his staff members could carry out his tasks. Alex submitted his handbook to his team after finishing the first draught.

The youngest designer at the organization, Elijah, expressed displeasure with the plan during the discussion.

He made the decision to leave the company after speaking with him. Alex felt a tiny bit better because he would have one fewer designer, but it might also have an impact on the company’s relationship with MNY Bank.

Alex received notice from Urban Sports Warehouse that they wanted the business to handle all of their marketing through a letter. Although he was excited about the possibility, he understood that declining the offer was the appropriate course to take. They would insist that he commit to five years of employment with them because his company was more demanding than other agencies. In order to obtain full payment, he would also need to reach specific milestones.

Constructing a Sales Team

Ted and Alex would discuss about his sales engine at their upcoming meeting. The stability of his team is one of the most crucial aspects that a prospective customer would take into account when selecting a business. He had to make sure he made the required adjustments to his team.

Alex made the decision to fire Dean, his account director, and Tony, his copywriter, after discussing about his sales engine. He could then hire two more salespeople as a result.

Blake, who had worked in the advertising business, and Angie, a successful product salesperson for small businesses, were the two people he met. They both possessed the abilities and information required to advance the business.

Ted advised Alex not to hire Blake because he had the qualifications and experience to advance the business. He had the skills needed to offer services and tend to customers. Angie had the abilities to sell things, thus Alex needed to hire her as a product specialist. Then he recruited her and brought in Seamus, a former coworker, to work for him.

Alex was informed by Harry, the company’s accountant, that he would be losing money this month as a result of the costs he and his group charged for a logo. Ted, though, reassured him that everything was OK and that a new system was being implemented right now.

After three months, they would be able to start prospering, but the subsequent two years would not be simple. Also, Ted stated to Alex his desire to increase the company’s value to $5 million. The company’s current value was less than $500,000. But Alex was still determined to accomplish this task.

Scaling Up

On explaining the pricing that he came up with to Alex, Ted used ambiguous language. He promised to record it and store it in an envelope that he could find later. The company employed 11 people by December. The new salespeople were being trained by Angie and her coworker Seamus, which was interfering with their work.

He advised him to put together a management team, with some of his current employees serving as managers. Yet it would be a very messy procedure. Ted instructed his managers to develop a long-term incentive plan and a raise as compensation for their dedication and hard work rather than awarding them equity.

Alex received assistance from Mary, an account manager at MNY Bank, who gave him high-yield CDs and a rise in his credit limit. The business generated more than $2 million in revenue by the end of the year. Ted advised him to postpone selling the business for a few more years despite the favourable financial situation.

A broker from the company named Mark advised Alex to sell to Multicom, a multibillion dollar company. Then he met with Peggy, an EMG Capital Partners financial counsellor, and she recommended two smaller tech companies. Ted advised Alex to choose Peggy since she was the better choice rather than a large corporation because doing so would eliminate all competitors and might not be the greatest deal.

Drafting Growth

Peggy suggested that Alex write a business plan outlining his organization’s objectives for the following three years. Ted urged him to be more imaginative and brave, suggesting that he consider a large corporation like Starbucks. He predicted that the company will generate $12 million in sales in his second draught.

Peggy produced a teaser for the business after getting the draught to give to a group of prospective strategic buyers. These buyers had a higher propensity to offer the appropriate price and be able to sustain the business.

Alex referred to the corporation as a client when Ted gave him an update on the numbers that had been forwarded to the office. Then Ted advised him to begin referring to everybody as a customer.

Final Steps

Peggy and Alex’s office was visited by Simon and Alistair from RTX Printing, a branch of RTX Global, to discuss their interest in purchasing the business. The meeting went well, and at the conclusion Simon questioned Alex on his motivation for wanting to sell.

After some hesitation, Alex said that he wanted to keep his finances secure and spend time with his family. Then Peggy informed him that this was not the best solution for the prospective purchasers. They wanted to get the impression that the owner was driven and capable of supporting them during the transition.

A few weeks later, Peggy told Alex that the business had received a bid. Although Ted pointed out that the letter of intent was a non-binding offer, Alex was overjoyed to receive the $6 million offer. Alex was nevertheless optimistic about the prospective purchasers’ offer.

Alex was growing impatient with the deal’s delays due to the inquiry being carried out by the Print Technology Group. Instead, he made the choice to speak with the possible purchasers face to face. He warned them that if they did not make a quick attempt to seal the sale, he was prepared to go. Marcus went on to promise him a last meeting in a few weeks.

Marcus notified Peggy and Alex that the offer had been reduced to $5 million due to some reservations about the company’s scaling strategy before the sale closed. Alex was enraged at the meeting and needed time to reflect. Then Ted instructed him to take out the envelope that had been kept secret for a year. He saw the $5 million offer and he took it. On November 30, the two parties concluded their agreement.

Built to Sell Book Review

“Built to Sell: Creating a Business That Can Thrive Without You” by John Warrillow is a popular business book that offers a step-by-step guide to building a valuable and sellable business. The book is written as a parable, following the story of a business owner named Alex who learns how to transform his struggling advertising agency into a successful, scalable, and sellable business.

The book’s main premise is that many small business owners create businesses that are dependent on their personal involvement, making it difficult to sell the business when they’re ready to move on. Warrillow provides actionable advice on how to build a business that is not reliant on the owner and can, therefore, be sold for a premium price.

The book is well-written and easy to read, with practical advice and real-world examples that make it easy to apply the principles to your own business. Warrillow also includes a helpful “Business Snapshot” tool that enables readers to evaluate the sellability of their business.

Overall, “Built to Sell” is a must-read for any entrepreneur or small business owner looking to create a business that can thrive without them. The book’s storytelling approach, practical advice, and easy-to-follow framework make it a valuable resource for anyone looking to build a valuable and sellable business.

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