**Episode 8 of the Business Growth and Exit Strategies Podcast**
Buyers do not pay for hustle. They pay for control. They pay for certainty.
Trusted systems reduce perceived risk by making performance repeatable, measurable, and transferable. That is how valuation and deal terms improve.
Your goal—whether selling your business or becoming more profitable—is to look for areas of certainty. That means systems and processes.
## Fair Warning
Not everybody who works with you or for you wants this.
When accountability happens, people have to do their jobs. There will be times when you have to have tough conversations.
It is your company. It is your business.
Here is what I share with people about exits: either you get paid for the work you put in, or the company that buys you will come in, make up the difference, and get you at a discount.
You did not work your entire life for a long process to get minimum for your business. You are doing it for maximum. Jump in. There will be tough conversations and decisions.
## Buyers Underwrite Reliability
Can we predict results? What does this look like? What is our degree of certainty?
If your systems consistently drive results, you should get maximum multiple. If they do not, start asking questions. Talk to people. Look at how deliverability is done and who is in charge of what.
Verify the numbers. Operate with certainty about the direction you are going.
## The Basics
When I talk with business owners and founders, it comes down to:
– Standard operating procedures
– Org charts
– Job descriptions
Almost every company I consult with or look at investing in comes down to those three things. And those are the things fought against the most.
People do not want to be held accountable. They do not want to do what needs to be done.
Once you have SOPs, org charts, and job descriptions, the next step is KPIs and scoreboards. People know what is coming. They do not want to be under a microscope.
But these are the things that need to be done for building systems buyers trust.
## People Dependency vs. Execution Dependency
If the outcome depends on who is working that account, or you hear “I don’t know who’s on shift,” investors see fragility.
Systems convert people-dependent processes into execution processes. It allows someone else to come in and take over that role.
This is one of the biggest fears of employees: if I share my standard operating procedure, I can be replaced.
That is true. But it is not the only reason you are doing this.
Sometimes people get sick. Sometimes people get hurt. Sometimes people move. Sometimes worse things happen. You need someone who can take that place.
Or go the other direction—you decide to grow. Instead of taking a long time to get someone onboarded, you get them onboarded in 72 hours versus three months. That gives you extra profitability.
## Four Places Investors Look for Systems
### 1. Financial Reporting
Accounting should be closed out on the 8th, 9th, or 10th of every month.
January numbers should be reported by February 8th, 9th, or 10th. The report should be done the same way every time, pulled the same way every time.
There should be a double-check system. Someone saying: yes, I believe that is accurate and true.
This is one way to protect against losing revenue to someone putting it in their pocket.
### 2. Sales Pipeline Management
How is the sales pipeline managed? Is there a follow-up process?
Not all deals close on the first go-round. When I was a corporate sales trainer, every Wednesday we called old leads. We discussed who owns what in the pipeline.
If it is over 30 days old and you have not sold it, it goes back to the house.
What are we doing consistently to recoup marketing costs and reduce overhead?
### 3. Delivery and Operations Execution
How is it documented? Is there a system in place?
### 4. Client Retention and Success
What triggers the KPIs? Is there a dashboard? Metrics? Numbers? Color coding? Emojis?
How does someone know these things are being taken care of? When does someone ring the alarm and say: we have a problem, we are way below forecast, we caught it early, we can fix it, but we are in a nosedive?
I was on a big management team where owning the numbers meant your numbers had to be in by 9 AM—an hour early.
If you were going negative, you stayed after to discuss the game plan. If you did not have one, they brought in the team to figure out how to fix the problem.
Did it work every time? No. But we caught a lot of problems early that others would have coasted on.
## Warning Signs
Look for places where people say:
– “We don’t really track that”
– “It’s in somebody’s head”
– Inconsistent reporting
– No SOP
– No meeting cadence
– Decisions happen informally
## Meeting Cadence
I believe every day inside an organization there should be a small meeting—5, 10, or 15 minutes max. Report out numbers: sales, marketing, accounting.
Then one big meeting per week—maybe Wednesday—an hour to an hour and a half. Where are we? Where is our forecast? Are we going to meet numbers? What needs to change?
If there is no meeting cadence, that is the easiest thing to put in place.
Each department should discuss the most important thing going on:
– Marketing: how many leads acquired, how many lost
– Sales: how many leads worked, how many closed, revenue, cancellations
Every organization will have cancellations. Dan Kennedy says: if you do not have cancellations, you are not pushing hard enough for sales.
Cancellations are not necessarily bad. You are asking for business and sometimes losing it. It is worse to not have cancellations.
## Consistent Cadence Is Proof of Control
Weekly KPI meeting. Monthly financial review. Quarterly planning.
People investing in buying a company trust routines.
Start with: we are going to have a meeting every Wednesday with an agenda. Then move to three meetings a week. Whatever gets you to maximum multiple.
You will have people who do not want this. One or two people who do not want to meet. One or two people who throw tantrums in meetings. One or two people who do not bring deliverables.
You have decisions to make:
1. Work with them and try to get them on board
2. Pay them to not show up
3. Ask them to leave
That is it. First principles—there are only so many things you can do with someone who does not want to go with you.
If you are looking for maximum multiple or fixing profitability, it comes down to tough conversations.
## First SOPs to Build
Sales and marketing first. Followed by accounts receivable and accounting.
How does the sales process go? I am a huge fan of using whatever technology works—low or high.
We could use three-by-five index cards, sticky notes, butcher paper, whiteboards, or software. Pick one and run toward the horizon.
One of the biggest struggles is waiting for decisions. “How do you want to do it?” “I don’t know, how do you want to do it?”
When I go into meetings, I bring sticky notes and three-by-five index cards. I ask: which do you prefer? Some raise hands for index cards, some for sticky notes.
This stops the “are we going to use a whiteboard?” debate. Just pick and move.
—
📊 **Free Framework Assessments:**
– [SELL Framework (Revenue Quality)](https://scottsylvanbell.com/sell-framework)
– [SCALE Framework (Operational Readiness)](https://scottsylvanbell.com/scale-framework)
– [DRIVER Test (Execution Capability)](https://scottsylvanbell.com/driver-test)
Apple Podcasts: https://podcasts.apple.com/us/podcast/episode-8-building-systems-that-buyers-trust-ep-8/id1876771297?i=1000749397404
Spotify: https://open.spotify.com/episode/5rxwfBspN7R9Ib0HhwO2Lv?si=8IH00ei9Q2aJYeH40yjBHA
YouTube: https://youtu.be/qWDsEmZMy0c
Podcast transcript
Buyers don’t pay for extra hustle. They pay for control. They pay for certainty. Trusted systems reduce perceived risk by making performance repeatable, measurable, and transferable. When that happens, valuation and deal terms improve. If your goal is to sell your business or simply become more profitable, you must look for areas of certainty—and that requires management, systems, and processes.
Not everyone who works with you will want this. Accountability means people have to do their jobs, and that can lead to tough conversations. But here’s the truth: either you get paid for putting the systems in place, or the buyer does. If you don’t do the work, they’ll acquire you at a discount, install the systems themselves, and benefit from what you failed to build. You didn’t work this hard to get minimum value. You’re aiming for maximum.
When buyers evaluate a company, they underwrite reliability. They ask, “Can we predict results? What’s the degree of certainty?” If your systems consistently drive outcomes, you earn a higher multiple. If they don’t, questions follow.
This comes down to documenting processes, establishing clear ownership, tracking consistent metrics, and maintaining a management cadence that proves the business runs the same way over and over again.
The fundamentals are simple: standard operating procedures, org charts, and job descriptions. Almost every company I consult with—or consider investing in—comes back to those three things. And believe it or not, they’re often resisted the most. Why? Accountability. Because once you define roles and processes, the next step is KPIs and scoreboards. People know what’s coming.
If results depend entirely on who happens to be working that day, buyers see fragility. Systems convert people-dependent processes into execution-dependent processes. Yes, documenting a process makes roles more transferable. That’s not about replacing people—it’s about protecting the business. People get sick. They move. They leave. Growth requires onboarding quickly. If you can get someone productive in 72 hours instead of three months, that increases profitability.
Investors typically look at systems in four key areas.
First, financial reporting. I believe accounting should close by the 8th, 9th, or 10th of each month. January numbers should be finalized by February 8th, 9th, or 10th, and so on. The report should be generated the same way every time, with checks and verification. Consistency builds credibility and protects the business.
Second, sales pipeline management. Is there a follow-up process? Not all deals close on the first attempt. There should be clear ownership of pipeline stages, defined rules for aging leads, and consistent follow-up to recapture marketing investment and reduce overhead.
Third, delivery and operations execution. Is it documented? Is there a repeatable system in place?
Fourth, client retention and success. What triggers KPIs? Is there a dashboard? Are metrics tracked clearly? How does someone know when there’s a problem? When do alarms get rung early enough to fix issues before they become disasters?
I’ve been part of large management teams where numbers were due by 9:00 a.m. every day. If performance dipped, you stayed and created a plan. If you didn’t have one, the team built one with you. It didn’t work perfectly every time, but it caught problems early instead of letting them spiral.
Watch for warning signs: “We don’t really track that.” “It’s in someone’s head.” Inconsistent reporting. No SOP. No meeting cadence. Informal decision-making.
A consistent cadence of meetings is proof of control. A short daily meeting to report numbers. A weekly KPI review. A monthly financial review. Quarterly planning. Investors trust routines. Start small if needed—one structured meeting a week—and build from there.
You may encounter resistance. Some team members won’t want to participate. You have three choices: work with them, pay them not to participate, or let them go. Growth requires alignment. If you want the maximum multiple, tough conversations are part of the process.
Sales and marketing are often the first SOPs to document, followed by accounts receivable and accounting. Map the sales process clearly. Use whatever tools you prefer—whiteboards, sticky notes, index cards, software—but pick one and move forward. Don’t let indecision stall progress. Define what happens from first contact to closed deal, and map the onboarding process for new clients and new employees.
If systems aren’t documented, buyers assume execution varies—and they’ll discount for that risk.
Define decision rights to remove bottlenecks. Who approves pricing? Discounts? Refunds? Hiring? Exceptions? Guardrails? If you’ve hired someone to lead, they should have authority within defined boundaries. That takes mentoring. Have leaders bring you options, not just problems. Teach decision-making so they can operate independently.
Metrics prove credibility. Track pipeline conversion rates, cycle time, gross margin by line of business, retention, churn, accounts receivable aging, delivery timelines, and client satisfaction scores. Sales should track leads and closes. Marketing should track lead flow. Accounting should track cash in, cash out, and receivables.
If you’re unsure where to start, start there.
Use proper systems of record—a CRM for pipeline, accounting software for financials, project management tools for delivery. Avoid sprawling spreadsheets that lack control. Eventually, you want a clean folder that shows a buyer your operating system: org chart, meeting cadence, KPI dashboard, top SOPs by department, and monthly close checklist.
Here’s a simple four-week framework to build momentum:
Week one: define cadence and ownership.
Week two: establish core KPIs and dashboards.
Week three: document the top five to ten SOPs per department.
Week four: clarify decision rights and compliance checks. Maintain quarterly.
Pick one workflow and begin—ideally sales or accounting, because they often create the fastest lift. If lead flow is weak, start with marketing.
Buyers don’t trust promises. They trust systems that consistently produce results—and proof that those systems work.