Which Path is Right for You: Scale or Build a Sellable Business?
As a business owner, you’ve probably heard the question as to whether you will want to scale or build a sellable business? But what do they really mean?
Are they two sides of the same coin? And which should you focus on if you’re looking to grow beyond the current demands of running the day-to-day?
So how do you decide whether you should scale or build a sellable business?
Let’s break it down and discuss how each approach impacts your time, role, and connection to the business you’ve poured so much into.
What Does ‘Scale A Business’ Mean?
When we talk about how do scale a business, we’re looking at growth without a proportional increase in resources. In other words, you can serve more clients, make more sales, or generate more revenue without needing to double the size of your team, your workload, or your expenses. The idea is to create efficiency and leverage so your business can handle a higher volume of work without adding the same amount of stress.
The Challenges when you are ready to scale a business:
Scaling sounds dreamy until you’re in the thick of it. As you try to extract yourself from delivering every single service or managing every client relationship, you’ll likely face two main hurdles:
- Letting Go of Control: It’s one thing to delegate, but another to trust others to uphold your standards and values.
- Maintaining Personal Connections: Your brand, especially if it’s built on your name or expertise, may start to feel diluted as you shift to working on the business instead of in it.
But when you scale your business correctly, it can lead to an exciting transformation: freeing up your time, increasing your capacity, and creating a more predictable revenue stream.
What Does It Mean to ‘Build a Sellable Business’?
On the other hand, to build a sellable business means creating a company that is independent of you. It’s not just about increasing revenue or customers. It’s about creating systems, teams, and a brand identity that a buyer can step into and run without your involvement.
To build a sellable business, it needs to meet several criteria, including:
- Repeatable Systems and Processes: Everything must be documented, standardized, and replicable.
- Scalable Revenue Model: A business dependent on the owner’s personal relationships is a red flag for buyers.
- Transferable Customer Base: Customers need to see value in the brand and product, not just in you.
The Challenges to Build a Sellable Business:
- Disconnecting from Your Own Business: If you’ve built the business around your unique style, personality, and face, shifting it to something that can run without you can feel uncomfortable or even heartbreaking. It’s like sending your child off to college—you want them to thrive without you, but it still feels weird not being involved.
- Creating an Exit Plan Without Losing Yourself: You’ll need to decide what’s next for you. This journey can leave you feeling like you’re losing your identity if you aren’t careful.
The Decision Dilemma: To Scale or Build a Sellable Business
So how do you decide? The key is understanding your end goal. Are you looking to free up your time and create more freedom within your business? Or are you looking to build something that you can eventually sell and step away from entirely?
Here are some questions to help you get clear:
Do you want to stay involved in the long term?
- If yes, scaling could be a better fit.
- If no, focus on building a business with a plan for your exit.
Is your business tied to your personal brand?
- If yes, selling your business may be a challenge. Consider creating new product lines or divisions that can operate independently of you.
Do you want your legacy to continue without you?
- If yes, build systems and a strong team that can carry on the vision.
- If no, you can scale your business as a means to generate more revenue and free up your time now, without worrying about a long-term exit.
Tips for Choosing Your Path
Whether you decide to scale or build a sellable business, here are some tips to help guide your journey:
Document Everything:
- Start with clear SOPs (Standard Operating Procedures) for every role and process in your business. This will make the decision to scale or build a sellable business easier.
Shift Your Role Gradually:
- Try delegating 20% of your day-to-day work first, then 50%, and so on. This helps you adjust to being less involved without feeling a sudden loss of control.
Invest in Systems Before You Need Them:
- This might include CRMs, automation tools, or customer support platforms that can grow with you.
Build a Strong Team:
- No matter your goal, a trustworthy and capable team is essential. For scaling, they’ll help execute and maintain quality. To build a sellable business, they’re the future stewards of your vision.
Create a Clear Plan:
- If selling your business is your goal, have a 3- to 5-year exit strategy. This includes valuation, finding potential buyers, and grooming a leadership team to take over.
Protect Your Personal Brand:
- If your business is heavily tied to you, consider building sub-brands, offering signature courses, or creating content that shifts the focus from you to the solution your business provides.
Final Thoughts: To Scale Or Build a Sellable Business…
The reality is, neither option is inherently better—it’s about what you want and need.
When you scale a business it allows you to stay involved as the owner, maintain your brand identity, and build a predictable revenue stream.
To build a sellable business will give you the opportunity to exit completely, gain financial freedom, and potentially move on to new ventures.
Both require stepping out of your comfort zone and making tough decisions about what you want your business—and life—to look like in the future.
Whatever path you choose, make sure it’s aligned with your vision, your goals, and your definition of success.
And remember, it’s okay to change course. After all, it’s your business—you get to write the story.
Want to learn the Benefits of Scaling A Business with a Small Team? How to Scale Your Business with a Small Team: Using Automation and Systems
Want to learn how to Create SOPs to Scale a Business Efficiently? Creating SOPs to Scale Your Business Efficiently
One of my favorite books on this topic: Built to Sell by John Warrillow
