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Lance Bachmann’s “Build It to Sell It” philosophy provides a practical and strategic approach to creating value-driven businesses in today’s competitive landscape. The idea revolves around building companies that are designed for scalability, profitability, and eventual acquisition, offering a blueprint for entrepreneurs looking to make their ventures successful and sustainable. This philosophy is not about a quick flip; it’s about creating businesses that thrive, attract investors, and ultimately, bring long-term benefits to their founders and stakeholders.
Here’s how Bachmann’s principles can be applied across modern industries to foster growth and innovation.
Start with the End in Mind
One of the core tenets of the Build It to Sell It philosophy is starting a business with a clear vision of its end goal. This doesn’t mean entrepreneurs need to have every detail mapped out, but understanding the broader objectives—whether it’s market dominance, strategic partnerships, or acquisition—is essential.
When applying this principle, think about:
- The Market Fit: Identify industries with growth potential and gaps in service or innovation.
- Scalability: Build operational systems that can grow with demand.
- Exit Opportunities: Evaluate who might buy the business—competitors, larger corporations, or private equity firms—and what they would value most.
For example, Bachmann’s success with 1SEO Digital Agency stemmed from building a business that addressed clear client needs in digital marketing while continuously refining its services to stay relevant in a competitive market. This made it an attractive acquisition for Skyharbor Capital in 2023.
Build a Strong Foundation
A business designed to sell must be solid at its core. This means focusing on infrastructure, efficient operations, and delivering a high-quality product or service. Investors and acquirers are drawn to businesses with well-defined processes, loyal customers, and proven profitability.
Key steps include:
- Documenting Processes: Standardize workflows and create training materials to ensure the business runs smoothly without constant oversight.
- Technology Integration: Leverage tools that automate repetitive tasks and improve efficiency.
- Building a Strong Team: Hire and retain talented professionals who can take the business to new heights.
By rolling up smaller roofing companies into larger entities like Munz Roofing and Planet Roof, Bachmann showcased how a strong operational foundation could elevate these businesses into industry leaders. The value was in the unified operations and enhanced service offerings that buyers found appealing.
Focus on Scalability
Scalability is a cornerstone of the Build It to Sell It philosophy. A scalable business can grow without exponentially increasing costs, which is key to making it attractive to potential acquirers.
How to ensure scalability:
- Streamlined Systems: Invest in technology and processes that can handle growth, such as customer relationship management (CRM) software or enterprise resource planning (ERP) tools.
- Diversified Revenue Streams: Expand offerings to reach new customer segments while maintaining efficiency.
- Partnerships and Acquisitions: Combine smaller players into a unified brand, as Bachmann did with Roofing Pups and its various partners.
Scalability makes your business more appealing because it shows potential buyers they can expand operations without significant additional investment.
Develop a Strong Market Presence
A business’s visibility and reputation directly impact its perceived value. Companies that dominate their niche or demonstrate thought leadership in their industry are more attractive acquisition targets.
Key focus areas:
- Brand Recognition: Build a strong, trustworthy brand that customers associate with quality and reliability.
- Customer Satisfaction: Prioritize positive customer experiences to build a loyal base and strong reviews.
- Thought Leadership: Share expertise through blogs, webinars, or events to position your business as an industry leader.
Bachmann’s businesses, such as 1SEO, thrived by maintaining high standards of client service and consistently delivering results. This reputation not only brought in more clients but also made the business a compelling acquisition opportunity.
Position for Exit Opportunities
When applying the Build It to Sell It philosophy, positioning your business for acquisition is a deliberate, ongoing process. This doesn’t mean you’ll sell tomorrow, but it ensures the business is always attractive to potential buyers.
Strategies include:
- Consistent Financial Records: Keep clean, accurate books to demonstrate profitability and stability.
- Clear Differentiation: Showcase what sets your business apart from competitors.
- Future-Proofing: Stay ahead of industry trends and adapt to changing market needs.
For example, Bachmann’s sale of Cherry Roofing and Siding to Vertex Investors and Dilling Heating & Cooling to Apex Service Partners demonstrated the importance of running a business with a clear value proposition and robust operational infrastructure.
Innovate and Diversify
Modern businesses need to remain agile and innovative to stay relevant. A company that evolves with market demands and explores adjacent industries not only ensures growth but also increases its appeal to acquirers.
Bachmann’s ventures show the importance of diversification. While he excelled in digital marketing with 1SEO, he also expanded into roofing, home services, and technology with partnerships like Shock I.T. Support and Titan Pro Technologies. By applying his philosophy across industries, he demonstrated its adaptability and effectiveness.
Share the Knowledge
Another valuable aspect of Bachmann’s approach is his commitment to sharing insights through speaking engagements and mentorship. Entrepreneurs can gain inspiration and actionable strategies from thought leaders who have successfully navigated the challenges of scaling businesses.
Sharing your expertise also enhances your business’s reputation, making it more visible and credible in the market.
Why ‘Build It to Sell It’ Matters Today
New industries emerge and consumer needs shift rapidly, building with a focus on value creation and scalability is more relevant than ever. Whether you aim to sell your business or simply want to future-proof it, this philosophy provides a clear roadmap for success.
Applying Bachmann’s Build It to Sell It approach means creating a business that isn’t just about profitability—it’s about resilience, innovation, and long-term sustainability. This mindset ensures that your company thrives in the present and remains attractive to partners, investors, or buyers in the future.
The philosophy is a practical tool for entrepreneurs who want to build companies that make an impact—both in their industries and in their eventual exit strategies. By focusing on strong foundations, scalability, and market positioning, entrepreneurs can turn their ventures into lasting success stories.
