How to Build a Sellable Business: The "Goose" and "Eggs" Strategy

Reading Time: 2 min read

The "goose" refers to the underlying value creation mechanism of a business, while the "eggs" refer to the tangible assets that can be sold.
Most people try to sell the "goose" (the underlying business) instead of the "eggs" (tangible assets).
To build a sellable business, it's essential to identify the "eggs" and create a recurring revenue stream or asset that can be sold.
A business with a high level of recurring revenue or sticky customers is more likely to be sellable.
To create a sellable business, focus on creating a platform that can be scaled and replicated.
The value of a business is not just in its brand or reputation, but in its underlying assets and revenue streams.
Private Equity buyers are looking for businesses with high levels of recurring revenue, stickiness, and scalability.
To sell a business, identify the "eggs" and create a strategy to package and sell them.
Consider raising capital to fund growth instead of exiting the business immediately.
Collaboration and strategy are key to building a sellable business.

Additional takeaways:

Most businesses are not sellable, and that's okay. Focusing on creating a sellable business is a good way to build wealth.
Understanding the concept of "goose" and "eggs" can help entrepreneurs build a business that can be scaled and sold.
Creating a scalable business requires a focus on creating a valuable asset or platform that can be replicated and sold.
Private Equity buyers are not interested in building a business, but rather in acquiring and scaling an existing business.
Raising capital can be a way to give partners or investors a stake in the business without exiting immediately.
Building a sellable business requires a focus on creating a recurring revenue stream or asset that can be sold.