Why is it easier to sell a product company than a service company?
In this execuBook, author John Warrillow argues that a service company is simply a collection of people with specific expertise who offer their services to the marketplace. As long as they customize their approach to solving problems, there's no scale to the business and its operations are contingent on people. And when people are the main assets of the business, it won't be worth very much.
To make the point, Warrillow tells the story of an entrepreneur who repositions his design business as a product business and, as a result, sells it for more than he expected.
This summary illustrates how to change the nature of a business to make it more valuable to potential buyers. It will be of interest to entrepreneurs and those who aspire to own - and then sell - their own businesses.
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