Here's a truth that most business owners discover too late:

The strategies that make your business more valuable are often the exact same ones that give you back your time.

In an extensive interview with Patrick Bet-David, John Warrillow, author of "Built to Sell" and founder of The Value Builder System shared something that completely reframes how we should think about growing a business:

Every step you take toward making your company sellable increases your personal freedom today.

You do not have to wait for an exit to enjoy the benefits of a valuable business...

If you're the only person who can close deals, approve decisions, or solve problems, your business isn't valuable—it's a high-paying job.

John emphasized that acquirers don't want to buy your personal expertise; they want a business that runs without you.

Start documenting your processes and training others to handle what only you do today.

Generalists struggle to scale or command premium valuations.

John pointed to examples like The Gourmet Garage, which tried to be everything to everyone and failed.

Meanwhile, specialized businesses in his database command multiples 30-40% higher than generalists. Pick one thing you're exceptional at and dominate that space.

This is the holy grail of business value.

John's research shows that companies with recurring revenue sell for significantly higher multiples than those relying on one-time transactions.

Whether it's subscriptions, retainers, or maintenance contracts, recurring revenue creates predictability—and predictability drives value.

You can't scale what you can't delegate.

John recommends hiring at least two managers who report to you, creating a buffer between you and the day-to-day operations.

This helps you build organizational depth & prove your business can function when you're not in the room.

The most valuable businesses run on systems, not superhuman effort. So, create standard operating procedures for every critical function.

When John analyzed thousands of businesses, he found that documented processes directly correlated with higher valuations and faster growth.

Plus, you'll stop answering the same questions 50 times a week.

If losing one customer would devastate your business, you don't own a business — you own a risk.

John's "Switzerland Structure" principle suggests that no single customer should represent more than 15% of revenue.

Acquirers discount businesses with customer concentration risk, and it keeps you awake at night. Fix it now.

You can't improve what you don't measure.

John emphasized tracking specific metrics that drive value: customer acquisition cost, lifetime value, monthly recurring revenue, and churn rate.

Potential buyers love seeing these kind of numbers. Plus, they serve as a dashboard that tells you if you're building something valuable or just staying busy.

Service businesses that sell time for money hit a ceiling.

The most valuable companies productize their expertise — creating scalable offerings that don't require your personal involvement for every delivery.

Whether it's software, frameworks, or systematized services, products scale while projects don't.

The harder it is for customers to leave, the more valuable your business becomes.

John highlighted how companies create "moats" through integration, proprietary technology, or network effects.

When customers face significant pain or cost to switch providers, you've built real competitive advantage (and that commands premium valuations).

Resist the temptation to chase every opportunity. John's research consistently shows that focused businesses outperform diversified ones. Every new service line dilutes your brand, fragments your team's attention, and makes you harder to sell. Say no to distractions and double down on what you do best.

Most owners think they need to work harder to build a valuable business, but the opposite is true...

The disciplines that create a sellable business — systems, delegation, specialization, recurring revenue — are the same ones that set you free from day-to-day operations.

Do this and you’ll not only build value for a buyer in the future, but you’ll create freedom for yourself today.

To start, keep it simple:

Start with just one item from this list. Document one critical process this week. Hire one manager who can take ownership of a key function. Implement one recurring revenue stream.

Small steps compound…

And every step toward a sellable business is a step toward the freedom you started your business to achieve in the first place.

Thanks for reading Acquiring & Exiting.

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