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Hey {{first_name}},
Many of you have built a great living through a lifestyle business: you sell what you’re very knowledgeable at, you’re experienced so work is easy to manage, and you feel like you’re your own boss.
But this doesn’t sell when it comes to buyouts
Most small business accounting is usually focused on two things,
Earning a living for the operator
Reducing taxes,
Neither of those are important when it comes to selling your business. Buyers want to pay themselves (not you as the main employee), and reducing taxes normally means reducing end of year profit, which normally means a lower company price due to valuations being based on profit multiples.
So how to turn your lifestyle business into a sellable asset? Find out how after a word from this week’s sponsor Deel
How to pick the right global payroll mode
Find your fit: Deel’s free guide breaks down 3 global payroll models with key benefits and tradeoffs for HR and finance teams.
Disclaimer: Give yourself time for an Implementation Plan
Changing your business for this is significant work, and takes time, but will be more than worth it. Plan the changes step by step and don’t worry that change is a gradual process
💬 Step 1: Document the Business Story
Create a Business Owner’s Manual for due diligence purposes. It will make you look incredibly prepared and professional when you start to have investor meetings.
Include:
Company history & structure
Key products/services
Financials (3 years)
Customer breakdown
Growth opportunities
Buyers love clear documentation, it builds trust and justifies a higher multiple.
🔍 Step 2: Make It Easy to Understand
Buyers discount what they don’t understand.
Your accounts, customer data, and systems should be simple enough for an outsider to grasp in one sitting.
“Could someone new walk in and know how this makes money?”. If the answer is yes, you are investable.
📊 Step 3: Build Recurring or Contracted Revenue
Predictability = higher multiple.
Examples:
Retainers instead of one-off projects.
Subscriptions instead of ad-hoc sales.
Multi-year contracts instead of handshake deals.
Even 30–40% recurring revenue can double your valuation.
⚙️ Step 4: Replace Yourself in 3 Core Areas
Sales: Create scripts, funnels, and repeatable outreach systems.
Operations: Document Standard Operating Procedures and use software to automate decisions.
Management: Appoint a second-in-command or department heads if possible.
💬 Pro tip: A business is considered “management ready” when you can go on holiday without your phone blowing up.
Complete these four main tasks, and you’ll have a high performance turn key company that’s investible, valuable and fun
Here’s to your success,
Unlocking Wealth Weekly