Built to Sell: 8 key ideas
The core ideas of Built to Sell, each in under a minute, written in our own words. Want the full depth? Get the book.
- IDEA 1 OF 8
A business owner wants out
Warrillow tells the story of Alex, who runs a small marketing agency and wants to sell it.
His advisor Ted explains why buyers see little value in a business that depends entirely on its owner.
- IDEA 2 OF 8
Turn a service into a product
Ted's first advice is to choose one service the agency does well and standardise it.
A repeatable, clearly defined offering is easier to sell, deliver and teach to others. Alex picks logo design.
- IDEA 3 OF 8
Specialise and say no
Alex learns to stop doing custom projects that drain time and stick to the specialised offering.
Focusing on one thing makes the business more efficient and easier for staff to run.
- IDEA 4 OF 8
Get paid before the work
Ted encourages Alex to charge customers in advance.
Positive cash flow makes the business healthier and much more attractive to buyers, who dislike companies that wait to be paid. Cash is king.
- IDEA 5 OF 8
Let others make the sales
Alex hires salespeople who can sell the standardised product without him.
Buyers value a business that can win customers without the owner being involved in every deal. Alex steps back from selling.
- IDEA 6 OF 8
Don't depend on one client
Warrillow warns against any single customer making up a large share of revenue.
A wider customer base reduces risk and increases what a buyer will pay. Concentration scares buyers away.
- IDEA 7 OF 8
Build a team that stays
Alex creates a management team and gives them incentives to stay after a sale.
Buyers need confidence that the business will continue running smoothly without the founder. Bonuses tied to the sale help.
- IDEA 8 OF 8
Sell to the right buyer
When Alex finally sells, he learns to work with an adviser and choose a buyer who sees strategic value.
Preparing for years in advance gives an owner far better options.
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