How to build a practice worth selling

A successful exit isn’t luck; it’s design. Buyers pay a premium for firms with predictable revenue, documented systems, empowered teams, and diversified clients. They discount firms dependent on the owner, squeezed margins, and patchy documentation. The next 90 days can increase value and widen your options—whether you’re 5 or 15 years away. 

What buyers value (and discount) 

• Recurring revenue with low churn: Advisory retainers and service bundles signal predictability. 

• Documented systems: Clear workflows reduce key-person risk and transition pain. 

• Balanced client base: No single client >10–15% of fees; diverse sectors reduce cyclicality. 

• Team autonomy: Delivery happens without the owner’s daily steering. 

Buyers discount when they see owner bottlenecks, lumpy revenue, and undocumented “tribal knowledge.” 

Valuation levers you can control now 

• Margin improvement: 

• Price: Align fees to value, not hours. Introduce service tiers and minimums. 

• Product mix: Spotlight higher-margin services (advisory packages). 

• Scope control: Package deliverables so over-service doesn’t eat profit. 

• Advisory pipeline: 

• Monthly Pulse + Quarterly Review: Visible forward bookings raise confidence in future earnings. 

• Conversion rhythm: Track offers made, trials, and upgrades like a sales pipeline. 

• Client loyalty and lock-in: 

• Multi-year agreements: Optional benefits for 24–36-month terms. 

• NPS and references: A stable base of referenceable clients is proof of durability. 

Align the business with your personal goals 

• Legacy clarity: What impact or reputation do you want your firm to carry forward? 

• Timing and milestones: Work backwards from a target year; set capability milestones (recurring revenue %, advisory penetration, owner time <25% in delivery). 

• Wealth plan: Know your number, your minimum price, and acceptable structures (cash, earn-out, shares). 

• Exits that align with life goals feel less like endings and more like a handover. 

Pitfalls that quietly erode value 

• Over-reliance on a few major clients: Actively cultivate mid-tier growth to rebalance over 12–18 months. 

• Undocumented know-how: If key knowledge lives in heads, write it down. Start with onboarding and monthly cycles. 

• Owner-centric relationships: Introduce team leads; let clients experience continuity beyond you. 

Every mitigation you implement now multiplies your choices later. 

Your first 90 days 

• Run a Business Dashboard® valuation report https://www.runagood.com/ai-business-advisor to see what’s supressing value 

• Map revenue: Split recurring vs. one-off. Design one new recurring advisory offer for your top 10 clients. 

• Document 10 processes: Start with onboarding, management accounts, and advisory prep. 

• Launch quarterly reviews: Book top clients into a recurring advisory cadence. 

• Reduce concentration risk: Identify two new wins outside your top client’s sector; set a 6–12-month plan. 

Preparing for due diligence (even if it’s years away) 

• Financial housekeeping: Clean debtor/creditor aging, WIP, and write-off discipline. 

• Legal hygiene: Engagement letters, GDPR, licenses, and IP ownership all in one folder. 

• People readiness: Role descriptions, training logs, and retention plans for key staff. 

You’re building a business someone else can pick up and run—with enthusiasm. 

To get an Exit-Ready Checklist plus a three-tab valuation prep workbook you can use with your team. Book a 15 minute call below.