Nick HutchisonFounder and CEO, BookThinkers

What is the best way to increase the attractiveness of your business as an asset?🤔

27 Oct 2023 · 1 min

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1:01

In a brief interview, Speaker A asks what business owners can do to make their companies more attractive to potential buyers. Speaker B explains that the primary factor is reducing owner dependency, especially as the business scales beyond $1M, $2M, $5M, and especially $10M, where buyers expect less reliance on the founder. To achieve this, owners should develop scalable, teachable processes and ensure the business can operate without them. Documenting these processes—using video tools like Loom or VidGuide—is recommended to create clear, repeatable workflows that enhance the company's value and appeal to buyers.

Chapters

What's one or two things that a business owner can do to increase the attractiveness of their business if they want to eventually sell it?
Well, first off, it depends on the kind of business and what is the business over $1 million, over $2 million, over $5 million, over $10 million. We see an inflection point at $10 million and above because a business of that size, a larger size, is assumed to be less dependent on its owner. So owner dependency, regardless of what size business you have, is really important. In the days of a young company, it's tough because we need revenues to drive our ability to hire more people. And how do we scale? Do we have processes that are teachable, or are you the owners, the only one who can do it? How big can your company get? What are those things that are going to enable you to have a business that can thrive without you? And eventually, you know, documenting your processes, whether it's on video like Loom or other tools, VidGuide,