Ask yourself: If I became incapacitated, can my business run without me?
- If no, buyers will be concerned about the business’s ability to operate without you.
- If yes, no need to continue reading ;-)!
If you can’t get away for at least one week of vacation at a time… If you hold key customer relationships… If you are solely responsible for any essential business function…etc. Buyers will see risk, and pass you by as risk equals lower value.
To increase your business value, build a business that can operate without you. Even better, eliminate key-person risk in every position throughout the company so business operations can continue no matter who gets sick or quits unexpectedly.