Built to Sell

John Warrillow argues that the biggest mistake entrepreneurs make is building a company that leans too heavily on them, so buyers doubt it can stand alone even when it is profitable. He makes the case through a fictional story: Alex, a small business owner struggling to sell his advertising agency, seeks advice from Ted, an old family friend who is himself an entrepreneur. Ted pushes three tests for a sellable business. It should be teachable, built on products and services that employees can learn to deliver; valuable, specializing in one thing to escape price wars; and repeatable, earning recurring revenue from products customers must buy again often.

Edition Guard founder Turgay Birand said it gets entrepreneurs thinking from the start about a business that can run without them.