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.
Discussion Points:
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
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