We continue our podcast series with exit planning expert and author, John Warrillow whose book Built to Sell, outlines the eight steps he says are critical to creating a sellable business. In previous podcasts with John, we discussed the importance of creating a standard service offering, reducing the amount of operating cash your business requires and how to hire the right sales team.
This week we discuss the fourth topic in Built to Sell: not accepting projects/work outside of your standard service offering. When you focus on too many things, it’s hard to do one thing really well. If your business is too fragmented and you serve too many markets, you end up devaluing your business. An acquirer may see your weakness, and decide instead that it's better for them to start a competing business in a niche that you’re not serving well. Or, if they are interested in your business, they may offer you a lower overall price because they only see value in a certain area of your business.
We invite you to listen to the conversation and comment below.
Podcast: Is Your Business Built to Sell?
If you want to retire, travel, cash out or just sleep well at night knowing you could sell your business; download this complimentary report from John Warrillow and learn the 8-step process to creating a sellable company. Download "The Model for Selling Your Business"
John Warrillow is an entrepreneur, author and speaker. Throughout his career as an entrepreneur, John has started and exited four companies. Most recently he transformed Warrillow & Co. from a boutique consultancy into a recurring revenue model subscription business, which he sold to The Corporate Executive Board (NASDAQ: EXBD) in 2008. He is the author of Built to Sell and Drilling for Gold and in 2008 was recognized by BtoB magazine’s “Who’s Who” list. www.builttosell.com
Darren W. says:
We can't turn off services that our customers want. The reason they come to us is because we can provide them with all of the services they need. If we say no to certain services then we allow a competitor in. What are your thoughts on this?
Submitted Jun 3, 2010 2:55 AM
Tom S. says:
Before we take on a new line we review our Strategic Objective. It has helped us say "No" to projects that might sound good, profitable, or interesting.....but ultimately aren't who we are or what we do.
Tom Schwab
www.GoodbyeCrutches.com
Submitted Jun 3, 2010 7:44 AM
Jill F. says:
Its tempting to say yes to a client when they ask you to provide something that is outside your core business. However, those services or products that are outside your normal range of activity can end up being unprofitable or taking time away from other clients. It may be appropriate occasionally but can easily get out of hand. Better to stay focused and "stick to your knitting".
Jill F
Submitted Jun 5, 2010 1:51 AM
Randall F. says:
Being able to say, "no," to doing the project, gives me the ability to refer it out to a trusted, strategic partner who can do it, and make a referral fee in the process...I still look good to the client, that I am about solving their problem...
Submitted Jun 7, 2010 5:47 AM
Laura-Jean B. says:
I spent a lot of years taking on almost anything that came my way out of desperation for the work, and a need to please people. Now that I found E-Myth I have a clear idea of the direction my work should be taking, so it's easier to stay focused on that.
I now feel an obligation to please people by staying on track instead of following any path that might seem like a shortcut to some money. My employees need careers (not just jobs), my customers deserve the excellent business I have in my vision and I deserve the life I now know is possible if I stay on track.
And I know that while I may be passing up a few hundred dollars on this or that job I pass up, that spending that time on getting closer to my vision will bring me much, much more in the long run.
Laura-Jean
www.freshcollective.com
Submitted Jun 12, 2010 6:04 AM
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