Creating business value is one of the fundamental goals of entrepreneurship. In this episode, John Warrillow advises not to wait until you want to sell the company and develop its value. Instead, you should develop it from the very beginning. John shares his know-how in 7x your business’ value and provides a bit more insight into the entrepreneur’s mentality.
About John Warrillow:
John Warrillow, an award-winning entrepreneur and advisor, boasts an impressive track record of starting and exiting four successful companies, one of which was acquired by a public company. He is renowned as the mastermind behind The Value Builder System™, a powerful software that empowers business owners to enhance the value of their companies. Through his network of Certified Value Builders, Warrillow’s system leverages diagnostic tools like the Value Builder Score, a metric that has seen companies achieving scores of 90 or higher being valued at twice the average-performing business.
In addition to his pioneering work, Warrillow is also a celebrated author with notable contributions to the business world. His books, including “Built to Sell,” “The Automatic Customer,” and “The Art of Selling Your Business,” help business owners create valuable, sellable companies, harness recurring revenue streams, and master the art of successful business exits. These invaluable resources provide actionable strategies and proven hacks that can elevate any business to new heights of success and profitability.
For detailed reviews of these exceptional books, please visit: Built to Sell, The Automatic Customer, and The Art of Selling Your Business (Book reviews)
Episode highlights:
- John Warrillow believes that business should be structured in a way that doesn’t depend just on the owner. You do not always need to be present. This will help you to build a tremendous value for your company and make it resistant to any major changes. [09:56]
- Building a company from scratch might change the angle you look at it. Occasionally it turns out that the value is not what you think it is. On the other hand, that revelation can trigger the understanding of what actually can drive the value of your company. [17:20]
- John claims that for most entrepreneurs their first business is often like training wheels. Their goals are to understand what the full life cycle of a business looks like and what potential outcomes are. [20:05]
- To become a better entrepreneur you need to figure out what type of entrepreneur you are now. John highlights 3 types of them: those who are driven by competition; the ones for whom independence plays a major role in everything; and entrepreneurs who want to master their craft and be recognized for their expertise. [23:25]
- John mentions the freedom point as the one where entrepreneurs realize that the sale of their business created enough wealth they never need to work again. It does not necessarily mean you will not work again but you simply do not have to. [29:48]
John Warrillow’s advice for entrepreneurs:
“As a buyer, you want a company that’s going to succeed without the owner. You’re going to write a check to the owner, and they’re going to go off into the sunset, you’re going to want a business that continues after he or she leaves. Buyers, not surprisingly, pay a huge premium for companies that can run without the owner, which is the premise behind the book, Built To Sell.”
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