How Can You Make Your Business Sellable?

Learn why solid financials, a strong team, documented processes, shared client relationships, and growth potential are crucial for making your business sellable.

Restoration business owners come to me for many reasons, but one of the most common is realizing that their business isn’t sellable—at least, not in its current state. Some come to me when they’re ready to sell but have been told by a broker that the business isn’t prepared and needs improvement. Others already know it’s not ready, while some have even given up on selling entirely, believing their business isn’t sellable.

In this video, I want to help you prepare for a sale and encourage you to eliminate any thoughts that your business can’t be sold. It absolutely can. You can turn things around. 

If you’re new here, my name is Scott Miller. I’m the owner of TheGrowthLeague.com. I’ve been making these videos and coaching in the restoration industry since 2009 because I’m passionate about helping business owners become more profitable, reduce chaos, and build sellable businesses. Having gone through the sale process twice, I want to help you in this area, so keep watching. I’ll share a quick story and then give you five key steps to consider.

A Quick Story

I’ve been working with a client for about a year and a half. At the start of one of our coaching calls, he says, “Scott, it’s been great working with you, but this is it. I’m retiring.” Surprised, I congratulated him and asked if he’d found a buyer. Selling had never been on his radar, so this came out of nowhere. He replied, “No, I’m just going to close the business.” 

I couldn’t let that happen. His business was valuable, and simply closing it made no sense. He was ready to pack it in, and since he didn’t need the money to retire, he figured he’d just shut it down. I asked him for six months to work on removing him from day-to-day operations and cleaning up his financials so that we could present the business to a broker. Eight months later, he successfully sold it and ended up with a significant amount of money he didn’t expect to have.

So, don’t give up on that idea if you're considering selling. Here are the five areas you should focus on to make your business more sellable.

The Five Key Areas

1. Strong Financials
Your financials need to be solid, not just in profitability but also in clarity. They should be set up in a way that tells the story of your business. Your chart of accounts should make sense, and your P&Ls should provide a clear picture of what’s happening. If you need guidance, feel free to reach out—there’s always a “Book a Call” link on my website.

2. A Strong Team
Your business should be able to run without you in the day-to-day operations, or at least most of them. This makes it easier for a new owner to step in and continue operations smoothly.

3. Documented Processes
Document your processes and work methodically to transition yourself out of daily operations. Anything you do should be documented, whether it’s in a Word document, Google sheet, or video. If it’s something you’re doing on a computer, use tools like ScreenPal or Loom to record it. Just grab the free version—they’re easy to use.

4. Client and Supplier Relationships
Ensure that you’re not the sole point of contact for your clients, suppliers, and referral sources. At least one, ideally two or three, other people in your business should know and be trusted by these key contacts. This ensures that your business isn’t dependent solely on you for these crucial relationships.

5. Growth Potential
As you go about your work, keep a list of potential growth ideas. If you had more time, energy, or capital, what would you do to grow the business? Potential buyers love to hear about these ideas, even if you don’t have the resources to execute them. It shows them the future growth potential of the business.

And that’s my list of five. Don’t hesitate to reach out if you need help.