Manage episode 291458184 series 2415578
John Warrillow tells us why you shouldn’t wait until you want to sell your business to start thinking about creating a valuable company. Do you know how The Value Builder System™ can 7X your EBITDA value? Tune in to this latest episode with John Warrillow to find out more.
About our Guest:
Award-winning entrepreneur and advisor John Warrillow has started and exited 4 companies, including one acquired by a public company. Today, he is the creator of The Value Builder System™, a simple software for building the value of a company. He’s also the author of best-selling books Build to Sell, The Automatic Customer, and The Art of Selling Your Business.
On today’s episode
- How The Value Builder System™ works - 4:10
- The best order to read John’s books - 8:32
- Why you need to build your company to run without you - 8:58
- How long until you increase your Value Builder score - 13:48
- What drives the value of a company - 16:28
- Your first business is your training wheels business - 21:15
- Why you should monetize your company now - 23:04
- The three types of entrepreneurs - 24:35
- The type of entrepreneur most likely to be a serial entrepreneur - 27:03
- The sweet spot to leverage The Value Builder System™ - 29:46
- The freedom point in a business - 30:36
- The issue with creating a legacy business - 32:38
- Don’t wait until you think you want to sell your business before reading John’s trilogy of books.
- The focus of The Value Builder System™ is to help companies increase their EBITDA value from 3.5X to 7X.
- Your first business is your training wheels business. You need to get it out of your system to figure out what the full lifecycle journey is, and understand what the end looks like.
- You learn more in the last chapter of your business than in any other chapter.
- Get familiar with the type of entrepreneur you are - mountain climber, freedom fighter, or craftsperson, because it will help determine the lifecycle of your business ownership.
- The best time to start leveraging The Value Builder System™ is when you hit $1m in revenue. Once you hit $10m, you’ve reached the freedom point.
Memorable Quotes by John Warrillow:
- “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.”
Have you used The Value Builder System™ to add value to your company? Share it with us in the comments. And don’t forget to say hello if you would like to share your entrepreneurship story on our podcast.
Connect with John Warrillow:
- Website: www.valuebuilder.com
- Personal website: www.builttosell.com
- Twitter: @JohnWarrillow
- LinkedIn: John Warrillow
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