This week I’d like to share an interview I did with Todd Westra from the Growth and Scaling Podcast. It was a great discussion on the some of the myths of entrepreneurship. We discussed a few huge challenges in the market – firstly over 90% of companies trying to exit are not ready for prime time. And secondly most acquirers are not fit to be acquirers, they are just not ready with a robust process.

Some takeaways:

1. Entrepreneurs are working hard making money but might be quite unsaleable.
2. Positioning is the top playbook by a mile.
3. Dependency on legacy products, owners, or a few key customers are not attractive attributes for acquirers.
4. Building a business buyers love to buy is an options strategy not an exit strategy. It delivers the option to sell one day even if you don’t
5. Building processes and playbooks around key actions allows owners to let go of the reins. And develop key staff that can run the playbooks.
6. Scaling is not the same as gowing. Scaling should make the business safer, stronger more attractive over time.
7. Preparing a company for sale, getting into the best possible shape takes years. Watch the Private Equity guys nurture and develop their portfolio for exit. It’s not an overnight success.
8. Alignment of effort is essential. A strategic plan must articulate a departmental script that is aligned around a vision.

What’s in this podcast episode? 00:36 Who is our guest, and what is his business 04:22 Why is it important to understand and know the recipe for growing and scaling a business 07:14 What is he doing to help companies grow even bigger 11:20 What are the buyers looking at when they want to acquire a business 13:51 The reason why you should run a business and make it saleable even if you never sell it 16:36 What good stuff can you find at the Portfolio Partnership website 17:58 captainscouncil.com ad 20:03 Two elements that he looks at and knows that the business is ready to get sold 23:47 What is the biggest playbook that sits way above everything else, and why 30:17 People that’s been a role model for him and been there with him along his journey

The full interview is now on YouTube

TPP scales companies through operational excellence and through acquisitions. Think of us as hands-on Operating Partners. It’s fractional corporate development management through the lens of an operator. Our Pre-sale Operational Excellence Service is specifically aimed at owners wishing to exit their business in two years time.

Always open for a conversation Ian@TPPBoston.com