**Episode 3 of the Business Growth and Exit Strategies Podcast**
Most businesses are not sellable because they are built like jobs, not assets.
If you are going to sell your company in the next two, three, four, or five years, you really want to consider: how do I build an asset that somebody wants to invest in and purchase, instead of just selling something and ending up with a discount?
## Defining Sellability From the Buyer’s Lens
When we define sellability, we need to look from the lens of the buyer or investor.
What they are looking for is something turnkey. Something predictable. Something they could walk right into, take off your hands, and you have light interaction afterward.
They might have some questions about purchases. They might have some questions about employees. But at the end of the day, you can walk away almost free and clear.
## The Core Test: Transferability
The core test, hands down, is transferability. How easy is it for the new owner, the new investor, the new PE firm to take over the company?
This is the pass or fail filter.
If you are asking how to get the maximum multiple for your business upon exit—is everything in that business transferable? Is the knowledge transferable? Are the standard operating procedures transferable? Are the sales transferable? Are the clients going to come back?
When we talk about transferability, we are talking everything.
## Business vs Job Distinction
Here is the distinction between having a business and having a job: if the owner has to be present, it is not a business in the buyer’s eyes. It is a job.
There is a risk score that investors use—whether PE firm, group of investors, or private investor. They look at your company and say: I want this business, but I am going to have to find an operator.
Depending on how much chaos is inside the business, how many problems need to be solved, they budget accordingly. They might say: normally this job pays $100,000 to $120,000. We are going to have to budget for $150,000 or $200,000 to bring in someone to rein in all these problems.
## What Works When You Are Gone
One strategy is to play a game: what works when I am gone?
You go department by department. If I leave for a day, what happens? For a week? For a month? For three months?
The month mark is what a lot of investors look at. If you can get to three or six months and the company is running on all cylinders—that is something to be proud of. That is maximum multiple territory.
## Systems Make Performance Repeatable
What you are looking for is a baseline operational system. Systems make performance repeatable. That is what you are after: repeated performance, predictability.
Predictability is going to come up in many episodes. It is a conversation that needs to happen more often.
One thing to ask your management team: how do we make this department more predictable?
Sometimes you will find there is a person who is kind of on the bus. Kind of engaged. Kind of wants to be there. But they are not fully engaged. They hold back the team. The team looks and thinks: that person is not doing their job, so we do not have to either.
You have to demand excellence.
## What Buyers Want to See
What buyers and investors really want to see is day-to-day execution:
– What are the roles?
– What are the workflows?
– What is the cadence?
You do not have to go to crazy town. You do not have to spend a lot of money. You could use a whiteboard. Sticky notes. Index cards. Mapping software.
If you are going to look for an objection, you are going to find five or ten of them.
You can map out a standard operating procedure for a job by talking into a voice recorder, taking it to something like Otter AI, dropping it into an AI engine, and saying: help me map out this standard operating procedure. What would make it more efficient? What are we missing?
Do this five times and you will find magic happens. You will pick up on nuances. Then you test it. You take that standard operating procedure and look at it like making a recipe from a cookbook.
## Sellability Is a Spectrum
Sellability is not a switch—it is a spectrum. There are levels: low, medium, and high sellability. Understanding what moves you up the spectrum is the work.
Common owner blind spots include overestimating sellability because of informal systems, key-person risk, and unclear reporting.
**Your action this quarter:** Pick one constraint and engineer it out. Sellability is built, not declared.
—
📊 **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)
🎙️ **Listen to this episode:**
Apple Podcasts: https://podcasts.apple.com/us/podcast/episode-3-what-makes-a-business-truly-sellable-ep-3/id1876771297?i=1000749397340
Spotify: https://open.spotify.com/episode/4UtUatq2s7a1EROGueZrS8
YouTube: https://youtu.be/zqk4sHjxpnU
Episode Transcript:
Here’s the question I want you to think about: is your business truly sellable?
Most businesses aren’t. They’re built like jobs, not like assets. If you’re planning to sell in the next two, three, four, or five years, you need to build something a buyer actually wants to invest in—not something they have to fix at a discount.
Sellability, from a buyer’s perspective, means turnkey and predictable. It means they can step in, take over, and operate the business with minimal friction. They may call you occasionally with questions, but they shouldn’t need you daily. You should be able to walk away with light involvement, not stay chained to operations.
The core test is transferability. How easy is it for a new owner, investor, or private equity firm to take over? This is the pass-or-fail filter. Is the knowledge transferable? Are the standard operating procedures documented? Are the sales processes repeatable? Will clients stay after you leave? When we talk about transferability, we’re talking about everything.
If the owner must be present for the company to function, it’s not a business in the buyer’s eyes—it’s a job. And jobs don’t command premium multiples.
Investors use a risk score, whether formally or informally. If they need to hire an operator to fix chaos, they budget for that. A role that normally pays $100,000 might require $150,000 or $200,000 to clean up problems. That cost gets priced into your valuation.
I’ve seen owners underpay key leadership because they want to maximize short-term profit. But better talent could run the company without them. When investors hear that you invested in leadership—above-market talent who strengthens transferability—that’s a positive signal.
To make a business truly sellable, play this game: what works when I’m gone? Go department by department. If you left for a day, what happens? A week? A month? Three months? Investors pay close attention to the one-month mark. If you can be gone for three to six months and the business runs on all cylinders, that’s powerful.
Systems make performance repeatable. Repeatability creates predictability. Predictability increases value.
Ask your management team: how do we make this department more predictable? That may require difficult conversations. Some team members may be partially engaged. Some may need coaching. Some may need to exit. Excellence must be intentional.
Buyers want to see day-to-day execution: defined roles, workflows, and meeting cadence. You don’t need expensive software. A whiteboard, sticky notes, or simple mapping tools can work. You can even record yourself explaining a process, transcribe it, and refine it into a standard operating procedure. Test it. Improve it. Repeat.
Think of it like writing a recipe. Be specific. Step one, step two, step three. Specificity protects you when someone leaves unexpectedly. Processes are one of the easiest areas to improve transferability.
Owners often overestimate sellability. Informal systems, key-person risk, and unclear reporting are red flags.
Meeting cadence matters. Implement short daily check-ins, a structured weekly meeting, and a monthly management session. Keep them consistent and predictable. Require numbers to be submitted before meetings so conversations are informed and actionable. The faster you identify issues, the easier they are to correct.
When I consult, I immediately look at reporting and accounts receivable. If revenue is strong but AR is bloated, that’s a problem. Predictability means knowing your ratios and being able to explain them with confidence. If you can clearly state your closing rate, uptime, AR ratio, or key performance metrics—and consistently hit them—you demonstrate operational control.
Transferability ultimately comes down to management depth, client continuity, and financial clarity. Can you explain your books? Can you show the business runs without you? Can you demonstrate that customers stay because of systems, not just relationships?
That’s what investors are evaluating.
Pick one constraint this quarter and engineer it out. Sellability isn’t declared—it’s built.