The Value Builder System is a structured methodology and assessment tool designed to help business owners understand, protect, and grow the value of their company—whether they plan to sell or simply want to build a more profitable, scalable business.
Here’s a breakdown:
🔎 What It Is
- A diagnostic tool created by John Warrillow (author of Built to Sell and The Automatic Customer).
- It measures a company’s performance across 8 key drivers of business value.
- Provides an objective Value Builder Score (0–100), showing how attractive the business is to buyers, investors, or even lenders.
📊 What It Evaluates
The system looks beyond financial statements and digs into qualitative and strategic factors that determine whether your business is built to thrive (and sell at a premium). The 8 drivers it evaluates are:
- Financial Performance – Revenue, profit, cash flow, and predictability.
- Growth Potential – How easily can the business expand into new markets, products, or customers?
- Switzerland Structure – Dependency on any single customer, supplier, or employee.
- Valuation Teeter-Totter – How much working capital the business needs to operate and grow.
- Recurring Revenue – The proportion of automatic, repeatable, and contracted revenue.
- Monopoly Control – Differentiation, competitive advantage, and market positioning.
- Customer Satisfaction – Measured through Net Promoter Score (NPS) and client stickiness.
- Hub & Spoke – How dependent the business is on the owner personally for day-to-day operations.
💡 Why Every Business Owner Should Use It
- Spot Weaknesses Before Buyers Do – Owners see blind spots and vulnerabilities that could reduce their company’s value.
- Increase Exit Value – Businesses with high Value Builder Scores often sell for 71% more than average-performing companies in their industry.
- Scalable & Transferable – Helps shift the business away from being owner-dependent to being a self-sustaining, growing enterprise.
- Strategic Roadmap – Provides a clear, actionable plan to strengthen areas that increase both short-term performance and long-term valuation.
- Peace of Mind – Even if you’re not planning to sell soon, you build a company that is more resilient, profitable, and attractive—to employees, customers, lenders, and investors.
✅ Bottom line: The Value Builder System isn’t just about selling a business—it’s about building one that can thrive without you, generate consistent profits, and give you options for the future.