A business parable about how to create a start-up that
won''t trap you when you want to sell it.
According to John Warrillow, the number one mistake entrepreneurs
make is to build a business that relies too heavily on them. Thus,
when the time comes to sell, buyers aren''t confident that the
company-even if it''s profitable-can stand on its own.
To illustrate this, Warrillow introduces us to a fictional small
business owner named Alex who is struggling to sell his advertising
agency. Alex turns to Ted, an entrepreneur and old family friend,
who encourages Alex to pursue three criteria to make his business
* Teachable: focus on products and services that you can teach
employees to deliver.
* Valuable: avoid price wars by specializing in doing one thing
better than anyone else.
* Repeatable: generate recurring revenue by engineering products
that customers have to repurchase often.