This is a summary of a book titled “Buyable: your guide to building a self-managing, fast-growing, and a high-profit business” written and self-published by Steve Preda in 2021. The ultimate dream for many founders is not just to build a thriving business, but to one day profitably cash out—reaping the rewards of years of hard work. Yet, as Steve Preda reveals in his book, this dream is elusive for most. The reality is stark: only a small fraction of business owners manage to sell their companies for the value they desire. The reason? Too many entrepreneurs become so absorbed in the daily grind and the relentless pursuit of profit that they neglect to plan for the eventual sale of their business.

Preda prescribes a set of management blueprints to maximize the value of your business and keep your options open for the future, you must build a “buyable” company. A buyable business is not just profitable and growing—it is structured, predictable, and operates with processes that can be replicated by others. Such a company is attractive to buyers because it offers stability, regular cash flows, and the promise of continued success even after the founder steps away. In contrast, businesses that are overly dependent on their founders or lack clear systems are often deemed “unbuyable,” and their owners may struggle to find buyers willing to pay a premium.

The statistics are sobering: most business owners face long odds—just a one-in-ten chance—of selling their company for the price they want. However, those who proactively “groom” their businesses for sale can achieve prices 30% to 50% higher than those who do not prepare. The key is to start with the end in mind, making strategic decisions that enhance the company’s marketability from the outset.

Preda outlines three primary paths to building a buyable business. The first is creative entrepreneurship, where founders launch independent ventures, often learning through trial and error. This route is rewarding but risky, with a steep learning curve—statistics show that 90% of startups don’t survive to their tenth year. The second path is franchise ownership, which offers a turnkey operation with proven systems but less room for innovation and a share of profits going to the parent company. The third, and perhaps most strategic, is to follow a tested management blueprint—leveraging the collective wisdom of business experts to build a company that is both independent and scalable.

He lists seven foundational management pillars: culture, structure, vision, strategy, execution, process, and alignment. A strong culture unites employees around a shared purpose, while a clear structure ensures accountability and smart decision-making. Vision gives the company direction, inspired by Maslow’s hierarchy of needs, motivating people to strive for higher goals once the basics are met. Strategy involves defining the company’s mission and understanding customer needs, while execution is about setting objectives and achieving measurable results—exemplified by Andy Grove’s leadership at Intel. Process design, as advocated by Frederick Winslow Taylor, ensures that operations are systematic and knowledge is passed on efficiently. Finally, alignment—championed by Jim Collins—ensures that everyone in the organization is moving in the same direction, preventing chaos and maximizing effectiveness.

To help entrepreneurs put these pillars into practice, Preda introduces ten leading management blueprints, each distilled from successful business books and real-world experience. These include Michael Gerber’s “E-Myth,” which urges founders to work on their business, not just in it; Jack Stack’s “The Great Game of Business,” which gamifies operations to engage employees; Verne Harnish’s “Rockefeller Habits,” which emphasizes priorities, data, and regular meetings; Gino Wickman’s “Entrepreneurial Operating System (EOS),” which focuses on vision, people, and execution; and several others, each offering practical frameworks for building a resilient, scalable company.

Preda’s narrative is one of proactive leadership. Savvy founders begin with the end in mind, understanding that selling a business is a process that can take 12 to 18 months. They know their “magic number”—the profit they need from a sale—and they prepare meticulously, maintaining records, building loyal customers, and strengthening contractual relationships. They seek out strategic buyers who can benefit from synergies, and they surround themselves with experienced advisors. In contrast, reactive founders who fail to plan may find themselves unable to sell or forced to accept far less than their business is worth.

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