Inspired by Jordan Welch’s YouTube video — it’s clear that building a sellable business isn’t about overnight success; it’s about following a proven blueprint and playing the long game.
Building a successful business starts with a fundamental truth: personal discipline lays the foundation for professional success. As Jordan Welch emphasizes, it’s crucial to eliminate destructive habits and replace them with productive ones before achieving financial growth.
Personal Development First
Welch’s transformation began when he hit rock bottom in 2020. After returning to his mother’s basement following a failed attempt in Los Angeles, he recognized that daily smoking, weekend drinking, and overspending were holding him back. His first step toward success was eliminating these habits and redirecting his energy into business growth. His story is a testament to the power of self-discipline and strategic action in achieving long-term success.
Many don’t realize that building a business requires mental clarity and focus. If you’re struggling financially, your priority should be creating a clear headspace for success. The natural high from building something meaningful far surpasses any artificial stimulant.
Choosing Your Path
Success leaves clues, and the smartest approach is to find someone who’s already achieved what you want to accomplish. When starting my e-commerce business, he didn’t reinvent the wheel. Instead, he studied successful stores and improved upon their model.
Here are the key elements to consider when selecting your business path:
- Identify your natural strengths and talents
- Choose a business model that requires minimal startup capital
- Ensure you have some income while building your business
- Study successful businesses in your chosen field
Building a Strong Foundation
The path to building a sellable business requires focusing on four critical elements:
1. Create a Competitive Advantage: In my e-commerce business, we spent two years developing a superior product through 35 different iterations. This commitment to quality created a significant barrier to entry for competitors.
2. Build a Customer Base: We accumulated tens of thousands of customer emails and built strong relationships with our audience. This asset proved invaluable when selling the business.
3. Diversify Traffic Sources: Instead of relying on a single marketing channel, we created an omnipresent brand visible across multiple platforms. This reduced risk and increased the business’s value.
4. Develop Systems and Teams: The business must be able to operate without you. This means creating documented processes and hiring capable team members to run operations independently.
The Power of Reinvestment
One of entrepreneurs’ biggest mistakes is pulling too much money from their business too soon. Every dollar earned in the early stages should go back into growth. This might mean improving products, hiring talent, or expanding marketing efforts.
When I started making money, instead of buying luxury items, I invested in better product development, team members for customer service, and expanding our marketing reach. This commitment to reinvestment made the business more valuable and eventually more attractive to buyers.
Preparing for the Exit
Selling a business isn’t just about profitability – it’s about creating an attractive asset that saves buyers time and resources. My successful exits came from building businesses that would have taken years for competitors to replicate.
Working with a broker can be valuable, but sometimes, the best buyers are already in your network. A business partner purchased my software company we’d already been collaborating with, showing that relationships matter as much as metrics.
Frequently Asked Questions
Q: How long does it typically take to build a sellable business?
Building a sellable business typically takes 2-3 years of consistent effort. This timeline allows for developing systems, building a customer base, and creating real value that attracts buyers.
Q: What’s the minimum amount needed to start a business?
You can start certain businesses with as little as a few hundred dollars. Service-based businesses often require minimal upfront investment, while e-commerce might need a few thousand dollars to begin effectively.
Q: Should I quit my job to start a business?
No, keeping a steady income source while building your business on the side is often the smarter approach. This provides financial stability and startup capital for your venture.
Q: How do I know when it’s the right time to sell my business?
The best time to sell is when you’ve built a business that can run without you and has strong fundamentals in place. However, avoid appearing eager to sell, as this can reduce your negotiating power.
Q: What makes a business attractive to buyers?
Buyers look for businesses with substantial competitive advantages, established customer bases, diverse revenue streams, and operational systems that don’t depend on the owner’s daily involvement.
