Exit Is Now - Plan Accordingly With Scott Snider How to Build Value in Your Business: A Discussion with John Warrillow
Feb 1, 2024
In this conversation, John Warrillow, founder of the Value Builder System and author of bestselling books, shares insights from his entrepreneurial journey. He discusses the concept of sellability scores and how recurring revenue models enhance business valuation. John reveals lessons from his four business exits and emphasizes the importance of delegating for a company's longevity. He also explores the motivations behind selling and the challenges in communicating with employees during transitions, providing a wealth of knowledge for business owners.
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First Hustle: Johnny The Juice Man
- John started his first business as a teenager called "Johnny the Juice Man" to get out of class early and sell juice.
- That early hustle exemplified his lifelong entrepreneurial drive and appetite for starting companies.
Sellability Lesson From An Early Exit
- John sold a market research firm to Gartner after learning his company was too founder-dependent to be sellable at first.
- That sale taught him the difference between cash-flow businesses and ones built for value and exit.
Recurring Revenue Multiplies Value
- Recurring revenue dramatically increases company value, often shifting valuation from EBITDA multiples to revenue multiples.
- Creating subscription-like models reduces monthly revenue volatility and makes businesses more sellable.
