John Warrillow — The Art of Selling Your Business
When it comes to scaling up, some Founders have dreams of selling their business but aren’t sure how to go about it. Are you confused and not sure where you should even begin? Well, today’s guest has sold four companies and knows a little bit about the art of selling your business for a high value!
John Warrillow kicked off a revolution in 2011 when he released his bestselling book, Built to Sell: Creating a Business That Can Thrive Without You, a process that helps business owners reframe how they think about the business. John is out with a new book, The Art of Selling Your Business, where he discusses why it’s not luck that certain businesses sell high, and breaks down the “how,” in this week’s episode!
John interviewed hundreds of entrepreneurs to better understand their exits and what made them sell their business for multiples more than the “industry standard.” What he learned is that these entrepreneurs have a certain dance that they play that helps their buyers feel comfortable and secure.
John noticed that the happiest people who sold all had pull factors vs. push factors. They were excited about the “next thing” and they were selling because they were ready to move on. The pull factor guys were selling because of external stresses, pandemic, employees, government red tape, etc. This is the key to help you not live in regret after you’ve sold.
Before you start the process of even thinking about selling, what’s your “freedom point” when it comes to living out your life with enough cash? When your business hits a critical financial point, even if you’re still enjoying the business, take some time to consider whether it makes sense to hold it or to sell it.
The promise for entrepreneurship is freedom, but the reality of that doesn’t always exist. Many times, owning a business can become less free than being an employee of a business. The biggest mistake entrepreneurs make is getting lured into a proprietary deal, which is where the potential buyer learns that they’re the only person at the table.